A change in government: what a Labour government means for employers
Thursday 4th July 2024 marked a big change for British politics. After 14 years, Labour restored their power in Britain, taking over from the Conservative party. Labour have proposed many changes, promising a big shake up of the workplace, aiming to increase the quality and rights of work. Yesterday (17th July) King Charles III set out a legislative programme, which the new Labour government promised to be ‘mission led’, creating opportunity and fairness for all. Through a new employment rights bill, exploitative practices are set to be banned, enhancing employment rights for all.
So what does this mean for employers?
There are wide-ranging changes being proposed and whilst we await the details on how and when these will be implemented we do know as HR professionals that this will require significant changes to employment contracts, handbooks and policies.
Labour have promised within the next 100 days to introduce new employment laws to parliament. Below we have provided a summary of the key changes employers should be aware of.
- Zero hour reform
Initially set to ban zero hour contracts, however Labour now propose new rules to be implemented to avoid abuse and exploitation of zero hour contracts.
A new law to be introduced setting out minimum standards, with a new right to a contract that reflects hours that are regularly worked (against a 12 week reference period).
- Employment claims timeframe
Employees will now have 6 months to put in a claim, rather than the 3 months they had prior.
- Fire and rehire
New statutory code of practice, going into effect on 18th July 2024. Plan to crack down on dismissing employees and then immediately re-engaging them with less generous terms and conditions.
The Code will apply in situations where employers:
- are contemplating making changes to their employees’ terms and conditions
- envisage that if the employees do not agree to the changes, it may dismiss them and either re-engage them on the new terms or engage new workers on the new terms.
- Day one protection
One of the most significant changes. Labour will grant all workers with important rights from the first day of their employment instead of 2 years. This accounts for rights such as unfair dismissal, sick pay and parental leave. Probationary periods still apply, however, to have fair and transparent processes.
Seasonal workers will be a different category when it comes to the reforms.
- Single worker status
Currently it is possible for an individual to be an employee, worker or self employed.
Labour to enforce a two tier system where a individual is either a worker or self employed
- Collective redundancy consultation
Proposal to strengthen redundancy rights. The requirement to collectively consult will become more common.
- Introducing the right to disconnect
Provides workers with the right to disconnect from work outside their working hours, to promote work life balance.
- National Living Wage
Raising to a minimum of £10 per hour for all workers, including young adults who earn less under current tiers
- Sick Pay
Propose to make statutory sick pay available to everyone and strengthen employment law protection for whistleblowers and pregnant women
- Flexible working right
Propose to make flexible working a default right from day one
- Menopause plan
Organisations with more than 250 employees to develop a menopause policy and call for an amendment to the Equality Act, introducing menopause as a new protected characteristic. Additionally, Labour plans to introduce menopause leave.
- Equality (Race and Disability Bill)
Labour plans to draft a bill to: extend the equal pay regime so it covers race and disability as well as sex; and introduce mandatory ethnicity and disability ay reporting for employers with at least 250 people
This is described as a draft Bill, so seems less of a priority and may take longer than 100 days to implement as a new law.
Of course, these proposals and promises may change over time and details within them are key. This means that organisations will be very busy adapting to changes for the rest of the year. It is encouraged businesses keep an eye on changes or seek guidance to ensure plenty of time to implement changes and to do so effectively.
If you wish for guidance, advice and/or support implementing these changes, get in touch with us at: lucy@mcmillanandassociateshr.com
Additionally, if you seek further information around any of the changes and how they will impact your organisation, please do get in touch! We are here to help you plan and adapt to these changes.