What does the new Labour Government mean for employment law?

Hull is This had a chat with Ed Heppel, Head of Employment about potential changes to employment law under the new Labour Government.

“No draft legislation has been put forward yet, just proposals and the devil will be in the detail,” Ed clarified. “Labour has promised to make certain changes, including what are being referred to as the most radical reforms to employment law in a generation. However, these things take time to put into effect.”

Labour has pledged to make changes to  to day one rights, which includes in respect of unfair dismissal and its qualifying period. Up until to 1999, the qualifying period for claiming unfair dismissal was two years; from 1999-2012 it was one year; and during 2012-2024 it went back up to two years under the Conservative Government. Historically, the qualifying period has been shorter under Labour, and the new Government is now talking about it being a day one right subject to a probationary period of potentially around six months.

“This could have numerous effects,” said Ed. “We could see more employees deciding to switch jobs with the protection of greater day one rights, plus employers may need to go through a more detailed recruitment process. There’s also the possibility that some employers will be less likely to take the gamble of recruiting new people.”

Ed also told us that the “fire and rehire” process , which has recently undergone a new statutory code of practice, could be banned or severely restricted in order that it is only lawful in very limited circumstances, although this is still very much in discussion.

“There are a few other topics of conversation,” said Ed. “One of them is the possibility of making it easier for Trade Unions to get access to the workplace and recruit members”. Another key topic is the Equality (Race and Disability) Bill, which could see equal pay type provisions being applied based on the protected characteristics of disability and race, and pay gap reporting for race and disability. There’s also talk of removing age bands from the National Minimum Wage which Labour has described as “discriminatory”.

“Engagement status is also being looked at, and there has been discussion regarding having one single status of worker instead of the current three tiered system highlighted in the high profile cases involving companies such as Deliveroo and Uber. However, this is a very complex issue to address, therefore it may take a number of years before we see any material change in this area..”

One of the most emotive proposals being considered by Labour is the introduction of a right to request a four-day workweek. This idea, which has been gaining traction globally, suggests that reducing working hours without a loss in pay could boost productivity, improve work-life balance and enhance overall wellbeing. The Labour Party has committed to exploring this possibility, with the aim of gradually transitioning to a shorter workweek over time.

Due to all of the above actions currently being in discussion, we asked Ed what businesses should do in the meantime.

“The next steps to take would be for employers to look at their employment contracts and check the probationary clauses and be prepared to properly review performance in the first few months. It’s also important to consider how potential changes to employment law could affect the way your business operates, as being prepared is key to a business remaining agile.”

Whilst these proposals are likely to face opposition, particularly within the business community, they resonate strongly with workers who are increasingly concerned about job insecurity, income inequality and the erosion of rights.

As Labour moves forward with its agenda, the coming years could see a significant reshaping of the employment landscape. If your business requires expert advice, assistance with employment issues, or support in drafting policies and procedures, make sure to get in touch with the team at Rollits.