Employment Law Changes Under the New Labour Government
The new UK government is set to implement significant changes in employment law for the first time in over 14 years. The Labour Party’s manifesto has committed to fulfilling its promises outlined in the Plan to Make Work Pay: Delivering a New Deal for Working People. Below, The Workers Union will summarize the key changes we can expect to be set in stone.
Timeline and Consultation
Labour has pledged to introduce legislation within the first 100 days of taking office. However, the specifics of which measures will be implemented during this period remain undisclosed. The government plans to consult fully with UK businesses, workers, and society on the practical application of its plans before passing new employment legislation. Standard implementation periods, typically 6-12 months, will apply to these changes, however some changes may take until 2026 to implement.
Key Changes to UK Employment Laws
Statement of Particulars of Employment
Employers will now be obligated to inform employees of their right to join a union within their written statement of main employment terms and remind staff of this right regularly.
Unfair Dismissal Rights
Unfair dismissal rights will apply from day one of employment, replacing the current two-year requirement. Existing fair reasons for dismissal will remain, with new rules ensuring fair and transparent probationary periods.
Increased Time Limits for Claims
The time limit for bringing statutory employment claims, including unfair dismissal and discrimination, will be extended to six months from the current three months.
Day One Rights – Parental Leave, Flexible Working, and Statutory Sick Pay (SSP)
- Parental Leave: This right will apply from day one of employment.
- Flexible Working: Labour aims to make flexible working the default from day one for all workers, with exceptions where it is not feasible.
- SSP: SSP will extend to all workers, removing the three-day waiting period and including those earning below the lower earnings limit.
Sexual Harassment
There will be a duty for employers to take all reasonable steps to prevent sexual harassment, including by third parties. Protections for whistleblowers, especially those reporting sexual harassment, will be strengthened.
Maternity Protection
It will be unlawful to dismiss a woman within six months of her return from maternity leave, with certain exceptions.
Right to Switch Off
Labour will introduce a ‘right to switch off’, ensuring that working from home does not result in constant availability. Employers and workers will be encouraged to develop workplace policies that benefit both parties.
Zero Hours Contracts and One-Sided Flexibility
Exploitative zero hours contracts will be banned. There will be compensation for workers when shifts are cancelled without reasonable notice, and a right to contracts reflecting regular working hours.
Fire and Rehire
The practice of ‘fire and rehire’ will be banned. The current statutory code of practice will be replaced with a strengthened version to provide effective remedies against abuse.
Unions
New duties on employers will include informing workers of their right to join a union and allowing unions regulated access to workplaces for recruitment and organizing. Reforms will simplify ballots, abolish minimum service levels, and prevent the replacement of strikers with agency workers.
Pay and Equality
- Equal Pay: A ban on using outsourcing to avoid equal pay for women and extending gender pay gap reporting to outsourced workers.
- Large Firms: Required to publish action plans on closing the gender pay gap.
- Equality Act: Implementation of the socioeconomic duty for public authorities.
- EU Law: Preservation of EU law principles on equal pay.
Collective Grievances
Workers will gain the right to collectively raise grievances with Acas about workplace conduct.
Minimum Wage Reform
Consideration of the cost of living in setting rates and the removal of discriminatory age bands.
Employment Status
The existing three categories of employment (employee, worker, self-employed) will be replaced by two: worker and self-employed. This change may extend rights like unfair dismissal to current workers.
TUPE Protection
Changes to consultation and dismissal rights under TUPE, although details are pending.
Whistleblower Protection
Enhanced protections for whistleblowers, especially for those reporting sexual harassment.
Self-Employed Workers
A new right to a written contract will be introduced.
Bereavement Leave
A new right to bereavement leave for all workers, with the nature (paid or unpaid) yet to be clarified.
Carer’s Leave
Labour will review the carer’s leave introduced in April 2024 and consider the benefits of introducing paid carer’s leave.
Workplace Surveillance
There will be a requirement to consult with workforce representatives before introducing surveillance technology and safeguards against discriminatory algorithmic decision-making.
Fair Allocation of Tips
The law will ensure fair allocation of tips, gratuities, and service charges, potentially amending the Employment (Allocation of Tips) Act 2023.
Unpaid Internships
These will be banned except when part of an educational or training course.
Adult Social Care Sector
A new Fair Pay Agreement will be established to negotiate better pay and conditions.
Education Sector
The School Support Staff Negotiating Body will be reinstated.
Menopause
Large firms will need to produce Menopause Action Plans and provide new guidance on supportive workplace measures.
Single Enforcement Body
A new body will enforce all statutory employment rights with strong powers for workplace inspections and enforcement actions.
Employment Tribunals
Improvements and digitization of the Employment Tribunal system will be undertaken, along with granting tribunals greater enforcement powers.
These changes mark a comprehensive overhaul of employment law aimed at providing greater protections and rights for workers. As these policies come into effect, The Workers Union will continue to provide support and guidance to help you navigate these changes effectively.