Anticipated changes to employment law under the new Labour government

The new Labour government’s election signals a significant change in the UK’s political scene, leading to anticipated changes in employment law. These changes, highlighted in the recent King’s Speech, are set to overhaul the rights and protections for workers nationwide.

The government has pledged to bring in new laws within the first 100 days, making it crucial for both businesses and employees to grasp the proposed changes.

Let’s take a closer look at the main proposed measures and their potential impact on you.

Enhancing workers’ rights

Collective bargaining: The government is planning to strengthen the role of trade unions, aiming to simplify the process of negotiating collectively for improved terms and conditions. Additionally, a new requirement to inform employees about their right to join a trade union through a written statement with reminders is expected.

Unfair dismissal: All employees will have the right to protection against unfair dismissal from the first day of their employment, as opposed to two years as is current. The existing valid reasons for dismissal will remain unchanged. Additionally, new regulations are expected to be introduced to ensure that probationary periods and processes are conducted fairly and transparently.

Zero Hours: Zero hours contracts will be banned, and employers will be required to compensate employees if shifts or working hours are cancelled without reasonable notice. Additionally, employees will have the right to request a contract that accurately reflects the hours they regularly work over twelve weeks.

Bereavement leave: Proposal to make bereavement leave a statutory entitlement.

Employment status: Plans to simplify employment status to workers and self-employed.

Promoting work-life balance

Flexible working: Employees will be able to request flexible working arrangements from their start date.

Enhanced parental leave: The government plans to extend paid maternity and paternity leave, offering greater support to new parents.

Right to switch off: The new Labour government is considering the introduction of a ‘right to switch off’. This would ensure that employees are not required to engage in work-related communications outside of their contracted working hours, helping to prevent burnout and promote well-being.

Family leave: Making parental leave a day one right.

Addressing workplace inequality

Pay transparency: Companies may be required to publish pay scales and ensure transparent pay practices.

Reform of minimum wage: Removal of the discriminatory age bands for minimum wage and the cost of living to be taken into account when setting pay rates.

Mandatory equal pay audits: Larger firms might need to conduct regular equal pay audits to ensure compliance with equal pay legislation.

Strengthened anti-discrimination laws: The Labour government plans to reinforce anti-discrimination protections, safeguarding employees against biases based on gender, race, age, disability, and other protected characteristics.

Race Equality Act: Extend the right to make equal pay claims to black, Asian, and minority ethnic as well as disabled workers.

Maternity protection: It will be illegal to terminate the employment of a woman within six months of her return from maternity leave.

This list is not exhaustive, and it is expected that many other measures will be introduced. For example, there may be changes related to TUPE protection, whistleblowing protection, fire and re-hire regulations, trade unions, sexual harassment, pay and equality, and collective grievances. We strongly advise that employers stay up to date with the latest developments and seek advice where necessary.
For tailored advice and guidance on how these changes might impact your business or employment situation, get in touch with one of our experienced solicitors, who will be happy to help.