We now know that Labour will form the next Government, so what happens next and what does it mean for employment? With the labour government employment changes, businesses and employees alike are eager to understand the impact and timeline of these new policies.
While Labour has committed to introducing legislation within their first 100 days, it may not come into force immediately as it will take time to introduce these changes. Once legislation is passed, there are further stages that include the passing of further legislation that introduces Regulations, there is likely to be public consultations and, in some areas, the development of Government guidance and/or Codes of Practice.
What can we expect to see change under a Labour Government?
We are going to see significant labour government employment changes over the next five years, which include:
- The introduction of dual discrimination which will allow workers to claim discrimination based on a combination of protected characteristics rather than two individual ones
- Introduce a Race Equality Act
- Ban exploitative zero-hour contracts by giving employees a right to have a contract reflecting the hours they regularly work based on a 12-week reference period
- End the practice of fire and rehire (dismissal and reengagement)
- Make parental leave and unfair dismissal a day 1 employment right
- Remove the lower earnings threshold for qualifying for statutory sick pay and to remove the waiting days, making it available from day 1
- Create a single enforcement body to enforce employment rights
- Remove the National Minimum Wage age bandings so all adults are entitled to the same minimum wage
- Change the criteria for determining the National Minimum Wage to ensure the cost of living is a factor when setting the minimum pay level
- Create a ‘Fair Pay Agreement’ to allow for sectoral collective bargaining in the adult social care sector
- Extend time limits for bringing tribunal claims from 3 months to 6 months
- A requirement for employers with more than 250 employees to have a menopause action plan
- Place a new duty on large employers to produce ethnicity and disability pay gap reports
- Make changes to the scope of collective redundancy consultation so that it is dependent on the number of redundancies across the whole business rather than at each establishment
- All new starters to be informed of their right to join a Trade Union
- Give workers a right to discuss switching off from work
- Consult on the proposal of having a single worker status
- Flexible working to become the default unless there are good reasons to refuse it
- Make changes to the Trade Union Act 2016 and abolish certain rules on industrial action.
There are many labour government employment changes on the horizon, and we continue to monitor the developments in employment law and best practices. However, alongside these longer-term developments, we have other changes that are expected in the coming months, that had been introduced by the previous. They include:
18 July 2024: The new Code of Practice on Dismissal and Re-engagement
This new Code applies when businesses propose contractual changes that employees do not agree to, possibly leading to dismissal and re-engagement.
September/October 2024: The Workers (Predictable Terms and Conditions) Act 2023
Will give employees and workers (including agency workers) the right to request more predictable terms and conditions of employment.
1 October 2024: The Employment (Allocation of Tips) Act 2023
This new law will require qualifying tips, gratuities and service charges to be allocated fairly between workers and without deduction.
26 October 2024: The Worker Protection (Amendment of Equality Act 2010) Act 2023
Imposes a new statutory duty on employers to prevent sexual harassment and grants new enforcement powers to the Equality and Human Rights Commission (ECHR) and judicial courts to uplift compensation.
Expected 2025: Neonatal Care (Leave and Pay) Act 2023
Employees will have a new statutory right to take a period of leave of absence when their baby requires neonatal care.
TBC: The Paternity Leave (Bereavement) Act 2024
This will introduce a new statutory right to partners where the mother of a baby/the primary adopter of a baby passes away.
How can we prepare?
- Sign up to our forthcoming free webinar on Thursday 12 September where we will discuss the employment landscape post the General. You can register here and please forward to others you know who may be interested.
- Staying informed will be key; sign up to our newsletter so you can be kept informed at the earliest opportunity. You can sign up here.
- Carry out a review of our current policies and employment practices. This will be essential in order for you to remain compliant.
- Engage with your HR team, or outsourced HR provider to get employment advice on the implications of the changes for your business and industry
- Update employment documentation – your employment contracts, policies, handbooks
- Finally, provide training to your line managers, and for some areas of law change, to your entire workforce.
We’re here to help
As an HR outsourcing company, we understand the complexities and challenges that come with navigating significant legislative changes. With the labour government employment changes on the horizon, it’s more important than ever to ensure your business remains compliant and your workforce is well-informed. We are committed to helping you navigate these changes seamlessly, contact us on 0844 324 5840, or send us an online enquiry by clicking here.
Upcoming Webinar:
Don’t miss our free webinar on Thursday, 12 September, where we will discuss the employment landscape post the General Election in detail. Register here.
Stay Informed:
Subscribe to our newsletter to receive the latest updates on the labour government employment changes directly to your inbox. Sign up here.
