After several months of speculation, we now know the date of the general election: July 4, 2024. Political party manifestos have not yet been published. However, we know Labour's proposals in relation to employment law because they are set out in Labour's plan to make work pay: delivering a new deal for working people, published on 24 May 2024.
The Conservatives have not yet published their proposals for employment law, but if they are re-elected we can expect their current policies to continue. These include trade and industrial union legislation, return to work reform of the Conformity Note and the possibility of reintroducing Employment Tribunal fees.
Labor published its Employment Rights Green Paper in 2021, proposing wide-ranging reforms. Unsurprisingly, many of these proposals were included again in the New Deal.
Initially, Labor stated that it would “deliver the biggest upgrade to rights at work for a generation”. If elected, Labor has indicated it will introduce the legislation within 100 days, consult fully before passing it, and engage widely with employers and trade unions. However, it recognizes that some aspects of the new deal will take longer to implement.
We highlight some key proposals below. for more details, click here.
Zero hours contracts and unilateral flexibility
Labor will end “unilateral” flexibility and ensure a “basic level of security and predictability”. They will ban exploitative zero-hours contracts, and ensure contracts reflect regular working hours based on a twelve-week reference period. There is no intention to prevent employers from offering fixed-term contracts.
Fire and reemployment
The practice of “fire and rehire,” or the technical term, firing and rehiring on new (usually less favorable) terms, has become increasingly controversial over the past few years. to update Draft Code of Practice Published on February 19, 2024.
Before the general election was announced, it was reported that the Code of Practice was expected to be enacted on 18 July 2024. This was confirmed on 28 May 2024, but we do not know what will happen if there is a new government.
In the New Deal, Labor stated that it was important that companies were able to restructure to remain viable and preserve their workforce and the company when there was no real alternative. However, this “must follow an appropriate process based on dialogue and mutual understanding between employers and workers.” The work will ensure effective remedies against abuse and strengthen codes of practice.
Fundamental rights for day one
The proposal to give unfair dismissal rights from day one has attracted a great deal of publicity. However, the New Deal makes clear that this will not prevent fair dismissal, which includes dismissal for reasons of ability or conduct or redundancy, or “probationary periods with fair and transparent rules and processes”. It is important to remember that there is already extensive protection against unfair dismissal from day one in many cases – for example, dismissal relating to whistleblowing, health and safety reasons and trade union activity. Likewise, there is no need for a qualifying period to file a discrimination claim.
Another proposed right to the first day relates to statutory sick leave pay, which would involve removing the current waiting period (and income threshold).
Single worker case
Determining an individual's employment status is crucial because this determines what employment rights, if any, they have. In the UK there is a three-tier system: employees, self-employed and workers. For tax purposes, there are only two levels: employees and self-employed.
Labor believes that the three-tier employment status system has contributed to the rise of false self-employment and proposes a move towards a simpler two-part employment status framework: workers and the self-employed.
This will be a difficult task. The determination of employment status has already led to many years of complex and high-profile litigation. The Labor Party intends to consult in detail on this matter
Simpler framework. Unsurprisingly, this is one of the topics mentioned in the introduction to the new deal that will take the longest to review and implement.
Repetition rights
Labor will strengthen redundancy rights and protections, for example, by ensuring that the right to redundancy advice is determined by the number of people affected across a company rather than in a single workplace.
Family friendly rights
Flexible working will be the default from day one for all workers, except where this is not reasonably possible.
Paternity leave will become a one-day right. Currently, 12 months of service is required for parental leave, and 26 weeks for shared parental leave.
A pregnant woman may not be dismissed for a period of six months after her return except in specific circumstances.
The right to unpaid carers' leave is introduced in April 2024, and Labor will “examine the benefits of introducing paid carers' leave”.
Labor will introduce the right to bereavement leave for all workers. Currently, there is the right to parental leave.
The proposal to introduce the right to “switch off” has attracted headlines. The pandemic has led to a change in work practices such as homework and hybrid working. It is accepted that for many people, the boundaries between work and home have become blurred. Labor will introduce the “right to stop working” and give workers and employers the opportunity “to have constructive conversations and work together on tailored workplace policies or contractual terms that benefit both parties”. There are no other details at the moment.
Fair pay
The National Minimum Wage (NMW) introduced by the Labor government came into force in 1999. In the New Deal, it is described as one of the greatest achievements of the last Labor government.
Labor intends to go further by ensuring the minimum wage is a real living wage that people can live on, and will remove what they refer to as “discriminatory age groups”. It will work with the sole enforcement body and HMRC and ensure they have the necessary enforcement powers.
Voice in action
This comprehensive section of the New Deal addresses important topics related to strengthening collective bargaining rights, modernizing union legislation, and ensuring industry
Relationships are built on negotiation and bargaining in good faith. In her view, this would “end the Conservatives' scorched-earth approach to industrial relations”. The Labor Party will also simplify the process of recognizing trade unions.
As expected, Labor will repeal the Strikes (Minimum Service Levels) Act 2023.
Equality at work
Labor is committed to tackling the gender pay gap. Although the gap is narrowing, progress is slow. Large companies must develop, disseminate and implement action plans to close gender pay gaps. There will also be mandatory reporting of pay gaps due to race and disability for employers with more than 250 employees.
Regarding equal pay, the Labor Party will establish an organizational and executive unit for equal pay with the participation of trade unions.
Employers and trade unions will be encouraged to negotiate and sign the Dying to Work Charter – a charter of best practices for the employment of terminally ill workers.
In relation to the prominent topic of menopause, employers with more than 250 employees will be required to produce menopause action plans on how to support employees through menopause. Guidance will also be published on issues relating to uniform, temperature, flexible working and recording leave and absences relating to menopause.
Labor will also work to raise awareness of neurodiversity in the workplace and in society.
Rights at work
Currently, multiple enforcement bodies report to different government departments. It is proposed to establish a single executive body for workers' rights, with union and trade union representation. Proposals for such a body were put forward by the Conservatives in 2019.
The time limit for bringing Employment Tribunal claims will be increased from three months to six months, which is in effect the current time limit for statutory redundancy and equal pay claims.
On safer workplaces, Labor will work with employers, trade unions and other stakeholders to support workers' wellbeing and long-term physical and mental health.
The work will require employers to establish and maintain workplaces and working conditions free from harassment, including by third parties. It will also reinforce the legal duty on employers to take all reasonable steps to stop sexual harassment before it starts. There are no details about what this duty will entail. Note that the Employment Protection (Equality Act Amendment 2010) Act 2023 was expected to come into force in October 2024, and would have imposed a duty on employers to take reasonable steps to prevent sexual harassment in the workplace.
After the general election was announced, Parliament was dissolved on 30 May 2024. This meant the end of all business in the House of Commons and House of Lords. Some significant changes to employment law were expected in the latter part of the year, and whether or not they progress at all, or in any form, will be known after 4 July 2024. We will keep you updated.