Labour's Employment Law Reform: What Employers Need to Know

During the election, Labour pledged to initiate substantial reforms to UK employment law within the first 100 days of taking office. While these changes will likely be proposed quickly, the process to enact them into law will take time. This article outlines the proposed reforms from Labour’s 2024 manifesto and their "Plan to Make Work Pay: Delivering a New Deal for Working People," providing an overview of what UK employers can expect. 

Employment Law Reforms: Timeline and Expectations 

When Will Reforms Take Effect? 

Labour’s plan to introduce employment legislation within 100 days is ambitious, but significant changes are unlikely to materialise immediately. Quick adjustments, like modifying the Low Pay Commission’s remit, might occur soon. However, most reforms require approval as primary legislation, a process involving both Houses of Parliament, which is time-consuming. Secondary legislation to detail reforms will also take time, and Labour’s commitment to business consultations means employers will have ample opportunity to provide input and prepare. 

Key Proposed Reforms 

Basic Rights and Employment Tribunals 

• Introduce day-one basic individual rights for all workers, eliminating the qualifying period for claims such as parental leave, sick pay, and unfair dismissal. 
• Extend the employment tribunal claim window from 3 to 6 months. 
• Implement a “right to switch off” similar to models in Ireland and Belgium. 
• Enable collective grievances through Acas. 
• Strengthen statutory sick pay by removing the lower earnings limit and waiting period. 
• Require consultation and negotiation before introducing surveillance technologies. 
• Establish a single enforcement body to tackle workplace exploitation. 
• Ban unpaid internships unless part of educational or training courses. 
• Consider moving towards a single status of “worker”. 

Sexual Harassment, Whistleblowing, Equality, and Discrimination 

• Enhance whistleblower protections, especially for women reporting sexual harassment. 
• Introduce a Race Equality Act to ensure equal pay for Black, Asian, and ethnic minority individuals and strengthen dual discrimination protections. 
• Create a right to equal pay for disabled people. 
• Mandate disability and ethnicity pay gap reporting for employers with over 250 staff. 
• Strengthen employer duties to prevent sexual harassment. 
• Prohibit dismissing women within six months of returning from maternity leave, except in specific cases. 
• Require large employers to develop Menopause Action Plans. 
• Continue supporting single-sex exceptions in the Equality Act 2010. 
• Enforce the socio-economic duty for public bodies and extend the Public Sector Equality Duty. 

Family-Friendly Rights 

• Review the introduction of paid carer’s leave (unpaid carer’s leave was introduced in April 2024) 
• Ensure parental leave is a day-one right and review the system within the first year. 
• Introduce bereavement leave for all workers. 

Contracts and Wages 

• Implement a flat rate minimum wage reflecting the cost of living for all ages. 
• Ban exploitative zero-hours contracts and ensure contracts reflect regular working hours based on a 12-week reference period. 
• Guarantee reasonable notice for shift changes and compensate for short-notice cancellations. 
• End 'fire and rehire' practices with effective remedies and a statutory code of practice. 
• Make flexible working the default from day one, accommodating school terms where possible. 
• Ensure hospitality workers receive and control their tips. 

Trade Unions and Health & Safety 

• Inform all new employees of their right to join a union and regularly remind all staff. 
• Update trade union laws to remove activity restrictions. 
• Allow secure electronic balloting. 
• Simplify union recognition processes and reduce recognition thresholds. 
• Modernise anti-blacklisting laws and provide sufficient facilities time for union reps. 
• Allow unions regulated access to workplaces for recruitment and organisation. 
• Introduce sectoral collective bargaining in adult social care and assess its benefits for other sectors. 
• Update health and safety legislation and guidance. 

Redundancy and TUPE 

• Require collective consultation on large-scale redundancies across the entire business. 
• Strengthen rights and protections for workers during TUPE processes. 

Although previously pledged, Labour has not mentioned removing statutory compensation caps in employment tribunals or extending maternity and paternity leave. 

Business Immigration Reforms: Timeline and Expectations 

When Will Reforms Take Effect? 

Labour’s business immigration proposals are not yet clear. Their focus on reducing net migration through a skills strategy will take time to implement effectively. 

Key Proposed Reforms 

• Reduce net migration through visa restrictions linked to skills policy. 
• Require employers to create “skills improvement plans” for sectors with high skilled worker visa applications. 
• Develop workforce and training plans for sectors like health and social care to reduce reliance on foreign workers. 
• Ban employers who violate immigration or employment laws from hiring abroad. 
• Strengthen the Migration Advisory Committee and establish a collaborative framework with UK skills bodies. 

Labour has not commented on the review of the graduate visa route or visa application fees and has no plans for a Youth Mobility Scheme with the EU. They will ask the Migration Advisory Committee to review changes to minimum salary requirements. 

Our expert employment law solicitors all have many years’ experience advising individuals who are in your position. We will be able to guide you through the process and to help you secure the best possible outcome.

We offer a range of services, so please contact our friendly customer services team to discuss further via hello@kilgannonlaw.co.uk or 0800 915 7777.

This article is for information purposes only and is correct at the time of publication. It does not constitute legal advice 22.07.2024