Now that Labour has their feet under the table we should expect significant employment law reforms, in particular the two bills announced in the Kings’ speech on the 17 July 2024: the Employment Rights Bill and a draft Equality (Race and Disability) Bill. 

Labour have promised to introduce legislation within the first 100 days of taking office. To date they have not confirmed which specific measures will be introduced during this period, but employers should be prepared as changes are coming.

Below you will find a list of potential changes that Labour intend to make during their time in Government.

Dismissals and Outsourcing

The Employment Rights Bill will give employees the right to not be unfairly dismissed from their first day of employment. Details of this change are still unclear.  

Restriction on ‘Fire and Rehire’

Labour plan to provide ‘effective remedies’ in the Employment Rights Bill to put a stop to the practice of fire and rehire. Typically, employers will dismiss and offer to re-engage workers on new terms; under the government’s plan this will only be allowed as part of a restructuring for a business to remain viable and preserve its workforce if there is no alternative.

Labour intends to provide a stronger version of the new code of practice on ‘fire and rehire’ which came into force on the 18 July 2024. At this stage, further details on this and what it may look like are unknown.

Threshold for Redundancy Consultation 

Labour has stated that they will change the law so that collective consultation requirements will be triggered if redundancies reach a defined threshold across the business as a whole, rather than looking at numbers within each site and/or workplace.

This change would bring the UK in line with other EU countries. The plan will require multi-site employers to keep track of redundancy numbers, resulting in more collective consultation exercises. 

TUPE

Labour wants to strengthen the rights and protection for workers transferred under TUPE, however, it remains unclear as to how they will do this. 

Statement of Particulars of Employment and Self-Employed Workers 

There will be a new obligation to inform employees of their right to join a trade union in a written statement, and employers will have to remind staff of this right on a regular basis. Those employed on a self-employed status will have a new right to a written contract. 

Single Status of Worker 

Labour plan to reduce the existing three categories of employee, worker and self-employed to two; workers and self-employed. This will likely involve the extension of certain rights such as unfair dismissals, to individuals who are currently classified as workers. 

Pay and Equality 

The aim to is ban employers from using outsourcing to avoid equal pay for women. The gender pay gap reporting rules will also be extended to outsourced workers. Large companies will have an obligation to publish action plans on closing the gender pay gap. 

Collective Grievances 

Workers will have a new right to collectively raise a grievance to Acas about conduct in their place of work. 

Flexibility and the Right to Disconnect 

The Employment Rights Bill will strengthen the right to request flexible working to ensure flexibility is the default from day one. The government propose to bring in the right to disconnect, providing workers and employers the opportunity to switch off from work. 

Parental Leave 

Labour plan to offer workers a right to parental leave which will apply from day one, not after one year. They have stated that within the first year of a Labour government they will conduct a review of parental leave. 

Maternity Protection 

It will be unlawful to dismiss a woman within six months of her return from maternity leave with some exceptions (though the details of those have not yet been published).

Sexual Harassment 

Employers will have a duty to take all reasonable steps to prevent sexual harassment and the extension of duty to harassment by third parties. This will go further than the legislation due to come into force on the 26 October 2024. 

Increased Time Limits for Claims 

At present the time limit to bring claims for unfair dismissal, discrimination and most other claims is three months. Labour plan to bring the time limit to six months for all statutory employment claims. 

Zero Hours Contracts and One-Sided Flexibility 

Labour wants ‘Exploitative’ zero hours contracts to be banned and have promised to end ‘one sided’ flexibility to ensure all jobs provide a baseline level of security and predictability. They intend to have employers pay compensation when shifts or working times are cancelled without reasonable notice. In addition to this, employees will have a new right to have a contract that reflects the number of hours regularly worked, based on a twelve-week reference period.

Reform of Minimum Wage

Labour have stated that the cost of living will be considered when setting rates and plan to remove discriminatory age bands. 

Whistleblower Protection 

The plan is to strengthen protections for whistleblowers and offer specific protection for women who report sexual harassment at work. 

Bereavement and Carer’s Leave

There will be a new right to bereavement leave, but at present it is not clear if it will be paid or unpaid. 
Labour have stated that they want to review the implementation of the Carer’s Leave Act introduced on the 06 April 2023 and examine the benefit of introducing paid carer’s leave. 

Menopause 

Large companies with more than 250 employees need to produce a Menopause Action Plan, including new guidance on supportive workplace measures and considerations. 

Single Enforcement Body 

This will see a new body introduced to enforce all statutory employment rights, with trade union and TUC representation. This single enforcement body will have strong powers to inspect workplaces, to undertake targeted and proactive enforcement work, bring civil proceedings upholding employment rights and take action against worker exploitation.

Employment Tribunals 

Labour aim to improve and digitise the employment tribunal system and give tribunals greater enforcement powers. 

Workplace Surveillance 

Employers will need to consult with workforce representatives before introducing surveillance technology. 
As you can see, there are plenty of proposals on changes the government want to make. The government has promised to consult fully with businesses, workers and society on how to put its plans into practice before any new employment legislation is passed. 

The standard implementation periods will apply for new employment legalisation, which means it will likely be 6-12 months at least before we see any of the changes implemented.