Labours Proposals Post-Election

On Wednesday, 17 July 2024, the King formally announced Labour’s legislative programme for the new Parliamentary session at the State Opening of Parliament.

The programme includes significant proposals for employment law. The Bill forms part of the Government’s “New Deal for Working People” which aims to transform the working conditions, rights, and benefits of employees in the UK. According to the Prime Minister’s Office’s background briefing notes, the Bill will include provisions to:

• Ban on ‘Exploitative’ Zero-Hour Contracts: Workers to receive contracts reflecting their regular hours and reasonable notice for shift changes with compensation for cancelled or curtailed shifts. This will give security and predictability. Zero hours contracts have risen to over a million over the last decade.
• End of ‘Fire and Rehire’ Practices: Provision of effective remedies and replacement of the previous Government’s statutory Code of Practice.
• Day One Rights: Parental leave, sick pay, and protection from unfair dismissal to be effective from the first day of employment, subject to probationary periods for new hires.
• Strengthened Statutory Sick Pay: Removal of the lower earnings limited and the three-day waiting period.
• Default Flexible Working: All workers to have flexible working as the default from day one, requiring employers to accommodate it as far as reasonable.
• Enhanced Protection for New Mothers: Strengthen protections for new mothers, making it unlawful to dismiss a woman within six months after her return to work, except in specific circumstances.
• Single Enforcement Body: Establish a Single Enforcement Body, also known as the Fair Work Agency, to enhance enforcement of workplace rights.
• Fair Pay Agreement in Adult Social Share: Establish and review of fair pay agreements for potential extension to other sectors.
• Reinstatement of School Support Staff Negotiating Body: Setting national terms, conditions, career progression routes, and fair pay rates.
• Updated Trade Union Legislation: Removal of what is deemed unnecessary restrictions on trade union activity including the previous approach to minimum service levels and ensuring industrial relations are based on good faith negotiation.
• Simplified Union Recognition Process: Ensuring reasonable access to unions for workers and union members.

Additionally, the Equality (Race and Disability) Bill will legislate to ensure the full right to equal pay for ethnic minorities and disabled people, simplifying pay discrimination claims. It will also mandate ethnicity and disability pay reporting for employers with over 250 employees to address pay gaps. For example in 2021 there was a gap of 13.8% between median pay for disabled employees and non disabled employees according to the Office for National Statistics.

If you are interested to see how these compared to the pledges made before Labour came to power, see here. There is a significant degree of overlap.

The landscape of employment law is set to change dramatically under the new Labour Government. Notably, the removal of the two-year qualifying period for an employee’s statutory protection from unfair dismissal is likely to result in Tribunal claims against employers increasing.

Employers must be alive to the upcoming changes and review their existing practices and documentation, including their employment contracts and policies, to ensure they remain compliant with the new laws. If you would like any guidance or advice in relation to any of the proposed changes, our Employment Law experts are here to help on 020 8290 0440 or email employment@thackraywilliams.com.