With the general election looming, it is predicted that the Labour Party will win by a significant majority. So, what will this mean for employers?
Labour have proposed what is called a “New Deal for Working People”. This will have a big impact on employers due to significant employment law reforms.
Labour have committed to introducing these employment law reforms within 100 days of taking office.
The New Deal for Working People aims to provide secure and safe work, and address discrimination and inequality in the workplace.
Summary of employment law reforms
Day One Employment rights
Rather than wait two years to have the right to claim unfair dismissal and bring a tribunal claim, this right will be in place from day one. Labour will however ensure that employers can still use probationary periods legitimately.
Day one rights also include the right to sick pay and parental leave. The right to request flexible working is already a day one right.
Ban on “exploitative” zero hours contracts
There will be one single status of worker and an end to “one sided flexibility”. This means that casual workers will be treated in the same way as employees and have the right to an employment contract that reflects the hours they regularly work based on a 12 week reference period.
This goes one step further than the recent legislation enforcing the right to request a predictable working pattern for casual workers.
Employees and casual workers will get “reasonable notice” of any change in shifts or working patterns, with compensation that is proportionate to the notice given for any shifts cancelled or cut short.
Removal of age bands within minimum wage
Labour will remove the current banding so that everyone is subject to the same (higher) minimum wage, which is likely to be uplifted to be reflective of the cost of living.
End of “Fire and Rehire”
“Fire and Rehire” is the practice of an employer making employees redundant and then re-employing them on less favourable terms and conditions. There is an implied threat that if employees don’t accept the proposed new terms they will lose their jobs, and therefore any consultation isn’t genuine.
There will be a revised Code of Practice (expected to be issued within 100 days of Labour taking office) which employers will need to follow when implementing proposed changes to terms and conditions of employment, and severe penalties for employers who don’t comply with this code.
Strengthening Redundancy rights and TUPE
Currently, the right to formal consultation is determined by the number of employees affected in one workplace i.e. employers must formally consult when 20 or more employees are implicated in one site/workplace. This will be amended to the requirement to consult when 20 or more employees are implicated across the whole business rather than just in one site/workplace.
The Right to Switch Off
Many countries have already implemented this right, with productive results. Now that many employees regularly work from home, the lines have become blurred between work life and home life.
Employers will not be permitted to converse with their employees outside of office hours on work matters.
Sick Pay
Sick pay will be a day one right and the lower earnings qualifying limit will be removed. The current waiting period of 4 days will also be removed.
Ban on Unpaid Internships
Unpaid internships will be banned unless they are part of an education or training course.
Gender Pay Gap Reporting
Companies who employ 250 or more staff are currently required to publish their gender pay gap on the gov.uk website and their own. Under Labour government, these companies will be required to develop, publish and implement action plans to close their gender pay gaps, and they will also have to report on ethnicity and disability pay gaps.
Menopause Action Plans
Companies employing 250 or more staff are required to produce a Menopause Action Plan setting out how it will support employees through the menopause.
Right to Join a Trade Union
Labour is making it easier for employees to join a trade union, and easier for trade unions to become recognised. Employers will be required to inform employees regularly of their right to join a trade union.
We are unclear as to what exactly this means for employers but hopefully more guidance will follow.
Preventing Sexual Harassment at Work
Under the current government, from October 2024 employers are required to demonstrate that they have taken all reasonable steps to prevent sexual harassment at work. Labour will strengthen this legal duty.
Carers’ Leave
The right to unpaid Carer’s Leave was introduced in April 2024. Labour is committed to reviewing this with the possibility of introducing paid Carer’s Leave. Watch this space.
Maternity Discrimination
Labour will make it unlawful to dismiss a woman who is pregnant for six months after her return from maternity leave, except in specific circumstances. Hopefully more guidance will follow as to what qualifies for a specific circumstance.
Actions for Employers
Review Your Current HR Policies and Practices
You will need to review and update or add to your existing policies, procedures and practices to ensure that you remain compliant with these legislative changes.
Review and Update Your Employment Contracts
Your employment contracts will need to be updated to reflect things like change in SSP entitlement, employment rights, changes to pay.
Protect Your Business
With things like day 1 employment rights and greater protection for employees, you need to ensure that you can protect your business from tribunal claims. Get in touch with one of our advisers to see how we can help protect your business:
Get in Touch
Cheviot HR can support you to implement these changes.
E mail us at hello@cheviothr.co.uk to ask us any questions or to arrange a call about how we can help.