New labour government’s plans for employment Law: impact for HR professionals

Published: July 19 2024

The new government outlined several key proposals aimed at reshaping the employment landscape which has been confirmed in the king’s speech. HR professionals will need to stay on top of any changes to ensure they protect their businesses. The government has promised to introduce some proposed changes in the first 100 days.

Day one unfair dismissal rights

If Labour were to make unfair dismissal a day one right, we say this would be the most radical change to unfair dismissal laws in over twenty years.

There has been some rumblings of potentially having a probation period before the right is available. This could even be a year, returning to the previous one year requirement.

The key here will be what the fair and transparent rules and processes will require of employers to be able to lawfully dismiss employees in the early stages of their employment.

Banning zero hours contracts

One of Labour’s policies is  banning zero-hours contracts. Labour describe zero hour contracts as “exploitive” because these contracts offer no guaranteed hours of work, creating uncertainty and financial instability for workers. Labour argues that banning these contracts will promote fairer and more stable employment conditions. Instead, they propose the introduction of new regulations that ensure workers receive predictable and guaranteed hours as well as proportionate compensation if shifts are cancelled.

Strengthening workers’ rights

Labour plans to enhance the rights of workers across various sectors. This includes:

• Right to Flexible Working: Labour intends to make flexible working the default option for all jobs, aiming to support better work-life balance.
• Right to Disconnect: Proposals include ensuring employees have the right to disconnect from work-related communications outside of working hours, helping to address issues of burnout and overwork.
• Banning fire and re-hire: As opposed to the previous government’s code, Labour has stated they intend an actual ban.

Union rights

Under the previous government, legislation to restrict lawful industrial action was implemented. However, Labour has stated they plan to repeal the restrictions and abolish minimum service levels in certain industries.

Additionally, Labour has stated that trade unions will be given a reasonable right to access workplaces and employers will have a duty to inform employees of their right to join a union.

Labour also stated in their manifesto that they are committed to “strengthening the rights of working people by empowering workers to organise collectively through trade unions.”. It is clear that material changes to compulsory recognition are planned to make it much easier for trade unions to gain formal recognition.

Pay and conditions

Labour has outlined that they are committed to improving pay and conditions. This includes:

• A National Living Wage which all adult workers would be entitled to;
• Enhanced equal pay and anti-discrimination laws: Stronger protections and regulations;
• Only allowing paid internship or those part of educational programs;
• Day-one Statutory Sick Pay: Labour plan to remove the lower earning limit to make it available to all workers and remove the waiting period; and
• Labour has also indicated that they want to bring a new enforcement bod in place to oversee workers’ rights- The Fair Work Agency.

Labour did state in their manifesto that they would introduce legislation within 100 days of entering government. We note that “introduce” and finalise and implement are not the same thing.  Therefore, the practical timescales for any of these new laws coming into force could be much longer.

Further support

It is clear this is going to be a year of change and the Brachers Employment Team and Kent HR Consultants will continue to update as developments occur. For more in-depth guidance or support, get in touch with our experienced team of HR professionals who can guide you and assist you.

Our team at Kent HR are on hand to provide guidance and practical HR assistance as and when you need us, in a way that suits your business. We support clients across a range of industries and with experience gained across various businesses and industries, trust Kent HR to help you succeed.

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