With a general election taking place on 4 July 2024, and the strong likelihood that Labour may form the next Government, we explore their key employment law plans, and what this will mean for HR and for your business.
Here is an overview of some of the proposals:-
Unfair dismissal Rights
One of the most significant proposals is the removal of the service requirement for unfair dismissal protection to make it a day 1 employment right. The current qualifying period for ordinary unfair dismissal claims is 2 years’ continuous service. However, Labour have suggested that this will be subject to probationary periods. Currently probationary periods are not set out in employment legislation, so it will be interesting to see if a dismissal during a probationary period will require a less stringent process.
Implications to employers – as it may not be as easy to dismiss if the person is not a right fit employers will need better hiring practices and ensuring they hire the right person. Employers will also have to ensure that they include probationary periods in the contract. We recommend 6 months in the first instance, with an extension of another 6 months.
Zero Hour Contracts of Employment
Labour wish to ban ‘exploitative’ zero hours contracts and tighter controls to ensure that everyone has the right to have a contract that reflects the number of hours they regularly work, based on a twelve-week reference period.
Implications to employers – there should be no implications unless employers have been using zero hours contracts in the incorrect way.
Employment status
Currently, there are 3 tiers of employment status: employee, worker and self-employed. Labour wish to simplify it to a two-tier system combining ‘employee’ and ‘worker’ into a single ‘worker’ status alongside the existing and genuine ‘self-employed’ status.
Implications to employers – this should clarify the position on employment status, which currently is confusing, especially the ‘worker’ category.
Sickness absence
Labour proposes to make Statutory Sick Pay (SSP) a day one right. This will remove the first 3 qualifying day at the start of absence (known as the ‘waiting days’).
Implications to employers – potential cost implications due to SSP being paid earlier, possibly higher levels of absence.
Employment tribunals
Labour wish to increase the time limit within which claimants are able to make an employment tribunal claim from the current three months to six months. Some types of claim, such as equal pay, already have a six-month time limit, however, many have a three-month time limit – including claims such as unfair dismissal and discrimination.
Fire and rehire
Labour wish to tighten the laws controlling the practice of “fire and rehire”, sometimes referred to as “dismissal and re-engagement”. This practice involves an employer dismissing an employee and subsequently offering them re-engagement on another contract, which has reduced terms and conditions of employment.
Implications to employers – fire and rehire is currently not an easy process, however, required in some situations. We are yet to hear how the practice will be tightened up.
Flexible Working and the Right to Disconnect
Labour wish to introduce the right to disconnect, sometimes referred to as the “right to switch off”. This would give employees the right not to be contacted by their employer outside their normal working hours.
They also want to change the flexible working legislation. In April 2024, changes were made allowing a day 1 right to request a flexible working arrangement.
Labour wants to adapt this so that workers have a right to flexible working – rather than a right to request it.
Implications to employers – this proposal could present a challenge to employers, especially small business employers.
Other proposed changes …..
Grievances – introduce a mechanism for workers to raise collective grievances about their employer to “make it easier for workers to raise grievances about conduct at work” and to reduce the risk of allowing bad or illegal practices to “continue without properly being dealt with”.
National minimum wage – the removal of the national minimum wage age bands to ensure every adult worker benefits from the minimum wage.
Parental rights – review the statutory parental leave rights, including carers leave and bereavement leave.
Redundancy and TUPE – strengthening rights and protections during redundancy and during TUPE processes.
Support to employees – further strengthen measures to prevent workplace sexual harassment. Increase mental health support, raise awareness of neurodiversity and review measures for managing stress.
Trade Unions – enhance trade union rights, simplify union recognition, and require employers to inform workers of their union rights.
Hill HR will keep you informed of developments, however, if you have any questions, please contact us.
