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Labour’s Vision for Employment: A Closer Look at What They Plan to Do

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23rd May 2024

Labour’s Vision for Employment: A Closer Look at What They Plan to Do

The UK is heading to a General Election on 4th July 2024. Labour’s Angela Rayner has previously announced a series of plans to reform employment law and introduce an Employment Rights Bill within 100 days as part of their New Deal for Working People. In today’s blog post, we break down these proposals and recap on a few of the key areas that may be changing after the 4th of July.

Disclaimer: This post is based on a Green Paper published in 2021, and we expect some sections to be updated in the party’s manifesto. We will publish further guidance on our 1st of July newsletter, detailing the employment law and HR changes from each major party’s manifesto.

Expanding Day One Employment Rights:

Perhaps Labour’s most eye-catching proposal is to provide a day one right to claim unfair dismissal. This would represent a significant departure from the current eligibility period for ordinary unfair dismissal of two years service. However, there are suggestions that dismissals during probationary periods with fair and transparent rules and processes may still be considered fair.

We recommend employers should review their contractual probationary period clauses and consider implementing robust performance management processes to adapt to potential changes. Our team of HR experts can ensure your 2024 HR Policies are up-to-date on these latest developments.

Employment Status Reform:

Labour aims to change the current three-tier system of employment status, replacing it with two categories – worker and self-employed. This change would grant workers more employment rights and protections, bridging the gap between employees and self-employed individuals.

Unsure if Labour’s plan for employment status reform applies to you? The gig economy, like companies like Uber and Deliveroo, could be significantly affected by this proposal. We’re here to help! Speak to a Sapphire HR advisor today for a free consultation to understand how these changes might impact your business.

Right to Disconnect:

Labour initially proposed introducing a right to disconnect from work after hours, acknowledging the impact of technology on work-life balance. However, recent information suggests a more diluted approach, focusing on facilitating “constructive conversations” about disconnecting.

While the original proposal received support, the revised version may have less practical impact. Still, the concept of work-life balance remains crucial. Employers should continue to prioritise employee well-being, which will undoubtedly be a key focus for all parties following the election.

Discrimination Protections:

Labour aims to address discrimination by extending equal pay rights. They also propose protections against dual discrimination, allowing individuals facing multiple forms of discrimination to bring a single claim. Additionally, Labour plans to introduce mandatory ethnic and disability pay gap reporting, aiming to increase transparency and accountability.

Lastly, they seek to reinstate provisions for third-party harassment, holding employers responsible for maintaining harassment-free workplaces.

Time Limits and Compensation Caps:

Labour intends to extend the time limit for bringing claims to employment tribunals, although specific details are lacking. They also pledge to remove the caps on compensation for unfair dismissal, potentially leading to unlimited liability for employers.

Given the proposals to introduce a day-one right for unfair dismissal these proposals could result in an increase in employment tribunal claims and require employers to carefully navigate dismissal scenarios to mitigate potential risks. Small business owners may wish to consider ensuring all employment contracts and policies and procedures are updated prior to the change.

As a Sapphire HR Client you have the option of becoming a beneficiary of our Employment Practice Cover which covers the cost of the associated legal costs of an Employment Tribunal claim. With it appearing that there will be less barriers than ever to bring an Employment Tribunal claim having this reassurance from your Sapphire HR subscription has never been as important.

Ending Fire and Rehire:

Labour strongly opposes the practice of fire and rehire, where employers change employment contracts without agreement. While the Green Paper initially proposed an outright ban, more recent information suggests a more nuanced approach, focusing on strengthening the statutory code of practice and reforming the law to provide effective remedies against abuse. This issue remains contentious, as businesses argue that fire and rehire can be a necessary tool for adapting to changing circumstances, while critics view it as exploitative. The final outcome will likely depend on the balance struck between protecting workers’ rights and supporting business flexibility.

Banning Zero Hours Contracts:

Labour initially pledged to ban zero hours contracts. However, recent reports suggest a shift in their approach, with a proposal to allow zero hours workers to request contracts reflecting their average hours. This revised stance aims to strike a balance between providing a baseline level of security for workers and maintaining flexibility in the workplace. The details of this proposal are yet to be fully clarified, but it highlights the ongoing debate surrounding the use of zero hours contracts.

Trade Union Law Reforms:

Labour aims to enhance trade union rights and protections, including the introduction of Fair Pay Agreements. These agreements would be established through sector-wide collective bargaining, setting minimum terms and conditions for all workers and employers within a sector. Angela Rayner has shown a particular interest in the Social Care Sector, and this focus was underscored in the 2023 National Policy Forum’s outcome, which included a commitment to consult on a Fair Pay Agreement for Social Care.

All sectors should be mindful of these proposals. However, Social Care clients may want to start with Unison’s ethical care charter as a valuable resource for understanding key areas to consider.

Labour is also reported to be proposing several changes, including repealing the Trade Union Act 2016, strengthening the right of entry to workplaces, allowing electronic ballots, lowering the threshold for automatic union recognition, and repealing the law on minimum service levels.

Conclusion:

As we’ve discussed extensively, 2024 is set to be a landmark year for HR and Employment Law, with many changes and a new Parliament in place. While much of this is based on Labour’s 2021 Green Paper, our July newsletter will provide an in-depth look at each party’s key plans from an Employment Law perspective.

We’re here to keep you informed about all the latest developments as we approach the General Election. If you have any questions, please don’t hesitate to contact us at 0330 124 3732.

For further information on Labour’s plans you can review these here: New-Deal-for-Working-People-Green-Paper.pdf (labour.org.uk)

 

Here to Help, Not Replace Experts:

The information contained in this blog presented for general informational purposes only. While we strive to provide accurate and up-to-date content, legal and HR practices can evolve rapidly. This blog is not a substitute for professional advice.

For specific questions or concerns regarding your unique situation, we highly recommend taking professional advice and booking a consultation with a Sapphire HR Consultant. Our consultants are experts in the field and can provide tailored guidance to address your specific needs.

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