With a general election being called for 4 July 2024 the country may soon find itself with a new political party in charge. A new governing party will mean significant changes in all areas of life in the UK, including employment law which is likely to impact all working people whether they are employed or self-employed. In this article we look at what reforms Labour is proposing be implemented should it be elected.
In its Green Paper ‘A New Deal for Working People’ Labour proposed making the following key changes to UK employment law:
- Reforming employment law status – a radical proposal which will remove the difference between ‘worker’ and ‘employee’, creating a single status of worker, for all but the genuinely self-employed, who will be entitled to the same basic rights and protections regardless of sector, wage or contract type. Labour considers that by creating a single ‘worker’ status it will clamp down on bogus self-employment and employers will no longer be able to treat staff like employees whilst falsely claiming they are not and deny workers their rights.
- Redundancy and unfair dismissal rights from day one – to end qualifying periods for basic employment rights. All employees will be given the right to statutory sick pay, redundancy pay, parental leave and to not be unfairly dismissed from day one of employment with the current cap on compensation removed. Currently employees must have worked for an employer for two years to claim redundancy pay and unfair dismissal rights.
- Statutory sick pay from day one – Statutory Sick Pay be raised and available to all workers from the first day of sickness, including the self-employed and those on low wages.
- More predictable working patterns and no more zero-hour contracts – to ban zero-hour contracts and contracts without a minimum number of hours. Anyone who works regular hours for 12 weeks or more will have the right to a regular contract to reflect the hours normally worked and reasonable notice of any change in shift patters or working time. Unpaid internships will also be banned.
- Increasing wages – for minimum wage be immediately increased to at least £10 for all workers. Also, to raise the national living wage to ensure it is adequate and addresses rises in the cost of living and inflation.
- A right to ‘switch off’ – the right not to be contacted outside of working hours so that employees can disconnect from work and pursue fulfilling personal lives.
- Work-life balance – for employees to obtain a good work-life balance by addressing obstacles such as long working hours or an expectation to work outside of their paid working hours. Further, to provide employees certainty and control over when they work and what they will earn so workers can plan their lives and choose how to spend their time.
- Outlaw of ‘fire and rehire’ practices – to ban employers from being able to dismiss employees who do not agree to changes to their employment contracts and then re-employ the employees on new terms.
- Extension of Employment Tribunal time limits – Currently an employee has three months to bring most claims to the Employment Tribunal. Labour proposes to extend limitation periods for the bringing of Employment Tribunal claims.
Whether these proposals are implemented or not is of course subject to the outcome of the general election on 4 July 2024.
While Labour promises to deliver a fairer deal for working people, focusing on workers rights, the proposed changes will have a significant impact to employers in respect of how they carry out recruitment, changes to employment terms and managing dismissals.
Further, if the proposed changes are implemented to the employment tribunal system, there will certainly be a significant increase in the number of claims being eligible to be brought before it which will undoubtedly result in increased pressure on a system that is already suffering unless additional funding is provided to ease burden. It will also create a greater burden for employers to both prevent and deal with litigation.
Labour promises to introduce an employment bill within the first 100 days of office. If this happens, we could see significant changes fairly swiftly requiring more work for employers such as changes to contracts and policies and procedures. Employers should therefore pay close attention over the next few months.
If you are at all concerned about how these proposals may affect you or your business in the event Labour is elected please contact one of our employment lawyers who will be happy to discuss.
For further information or advice on any employment law matter, please contact Louise Brenlund or Sara Cox
Warners Solicitors has offices in Sevenoaks and Tonbridge, Kent.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.
