With the election just over a week away, all parties are busy on the campaign trail and with Labour widely predicted to end the 14-year Conservative reign on July 4th, what will this mean for employment law?
On 24 May 2024, Labour released details of its ‘Making Work Pay’ pledge swiftly followed by their Manifesto on 14th June. The Manifesto includes a stated aim to implement ‘Labour’s Plan to Make Work Pay: Delivering a New Deal for Working People’ in full.
The proposed reforms are being billed as
“the biggest upgrade to rights at work for a generation”.
In this article, Sarah Begley summarises some of the proposals. She says
“Labour have pledged to introduce legislation within its first 100 days in power, but also to consult fully before legislation is passed. As such, implementation of particular proposals may well take much longer in practice.”
Some of the key proposals are as follows:
- Zero-hour contracts
Labour views the benefits of zero-hour contracts as one-sided. It has committed to replacing these types of contracts with a contract that reflects the minimum number of hours an employee usually works. This will be by reference to a twelve-week periodThe proposal is to ban ‘exploitative’ zero hours contracts, so it is not an outright ban.
- Fire and rehire
The headline is ‘ending fire and rehire’ but again the proposal is not an outright ban. Fire and rehire is a practice which involves employers dismissing employees and then rehiring them on new contractual terms and conditions or threatening employees with dismissal unless they agree.Labour plans to introduce remedies against abuse and implement a strengthened code of practice.
- Day one employment law rights
Introducing a day 1 right to sick pay, parental leave and crucially the ability to bring an unfair dismissal claim (currently employees need a minimum of 2 years’ continuous service). The vision however is that probationary periods will have a special status.
- Genuine living wage
Altering the criteria for determining national minimum wage to include consideration of cost of living and removing age bands, so all adults are entitled to the same minimum wage. An Enforcement Body will be created, and it, along with HMRC, will monitor and enforce non-compliance.
- Define ‘worker’ under a single status
Under section 230 of the Employment Rights Act 1996, people are classified as either employees, workers, or self-employed. Each category enjoys different (but often overlapping) rights and protections. This has presented difficulties for both employers and employees alike. Labour plans to classify people as either an employee or a worker by consulting and devising a much simpler framework.
- Employment Tribunals
Employment Tribunals have been fraught with delays in recent years. Labour intends to implement recommendations made by the Law Commission in 2020 and increase the time limit within which employees can make an employment claim from three months to six months.
- Other notable proposals: –
Creating a ‘Fair Pay Agreement’ to allow for sectoral collective bargaining in the Adult Social Care Sector.Setting up a single enforcement body to enforce workers’ rights.
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Sarah concludes:
“The above is a summary of just some of the key changes Labour plans to make to employment law if elected. Arguably these changes, if they proceed, are some of the most employee-friendly changes in a generation. However, the volume of proposals may mean that some will have to take priority over others, at least in the short term. Furthermore, dismissals certainly appear to be more complex and expensive. It could result in more claims in the Employment Tribunal which is likely to put a strain on Tribunal resources and possibly increase delays.”
For further help and advice, please contact Sarah Begley, Associate Solicitor at Wilkes Solicitors on 0121 733 8000 or via email at [email protected] You can also contact any other member of the Employment Team on 0121 233 4333 or email us at [email protected]
