The new Labour government has plans to radically reform employment law over the next few years. How could your business be affected?
The Labour Party has pledged to introduce an Employment Rights Bill within its first 100 days in power, so this is likely to be listed in the King’s Speech on 17 July 2024. However, it has also said that it will consult fully before that legislation is passed.
Although we don’t yet have the full detail of the new government’s plans, its key employment law proposals are to:
- introduce a day one right for employees not to be unfairly dismissed – but employers would still be able to dismiss an employee during or at the end of a probationary period provided there’s a fair and transparent process
- only permit dismissal and re-engagement (“fire and rehire”) as part of a restructuring where there’s genuinely no alternative for the business to remain viable
- ban “exploitative” zero-hours contracts and implement a new right to a contract that reflects the hours that are regularly worked, based on a twelve-week reference period
- introduce a right to reasonable notice of changes in shifts or working time, with compensation for shifts cancelled at short notice
- make flexible working the default from day one, except where it’s not reasonably feasible
- make parental leave a day one right
- introduce a statutory right to bereavement leave
- make it unlawful to dismiss employees within six months of return from maternity leave, except in specified circumstances
- remove the lower earnings limit and the three-day waiting period for qualifying for statutory sick pay (SSP)
- implement a “right to switch off”
- remove the 18-21 age band for the national minimum wage (NMW) and link the NMW to the cost of living
- ban unpaid internships except when they are part of an education or training course
- extend the time limit for lodging employment tribunal claims from three to six months.
It also intends to consult on plans to abolish the current three-tier framework for employment status and to move to a simpler two-tier framework, with individuals being classed as either workers (which would include those currently classed as employees or workers) or self-employed.