The Labour Party have said, “Britain’s outdated employment laws are not fit for the modern economy”. Following their win in the General Election, the Labour Party propose to make the following changes to the employment sector.
What are Labour’s key employment proposals?
The main proposals outlined in the Labour Party Manifesto include:
- Zero-hour contracts – Forbidding “exploitive” contracts, softening earlier plans for a total ban
- Fire and re-hire – Limit this practice, permitting it only when businesses have no other possible options and follow appropriate dialogue processes
- Day one rights – Grant basic rights (for example parental leave and sick pay) from the start of employment. Unfair dismissal rights will apply instantly, but probationary periods will be allowed under fair rules
- Trade unions – Improve union workplace access and require employers to update staff about union membership rights
- Rights enforcement – Establish a Single Enforcement Body to supervise workplace rights
- Minimum wage – Introduce a “proper” living wage and eliminate age-based wage differences
- Reduce the gender pay gap – Strengthen women’s equal pay rights, address the gender pay gap, and extend equal pay protections to disabled and ethnic minority employees. Ensure that large employers report on disability and ethnicity pay gaps
- Discrimination and harassment – Strengthen protections against maternity, menopause, and sexual harassment. Introduce a Race Equality Act and improve safeguards against dual discrimination
- Disability rights – Improve employment support and access to reasonable adjustments for disabled employees
- LGBT+ rights – Ensure protection and respectful treatment for LGBT+ individuals
Additional changes proposed in the New Deal
Labour’s Manifesto re-affirmed its commitment to implement the New Deal in full. The top proposed changes are below:
- Extend the timeline for filing a claim in the Employment Tribunal from 3 to 6 months
- Amend group redundancy consultation triggers to consider affected employees across the entire company, not just at individual locations
- Mandate that written employment particulars include information on trade union membership rights, with regular reminders to employees
- Establish flexible working as the default from the start of employment, unless demonstrably unfeasible
- Implement a right for staff to have a contract displaying regular working hours, based on a 12-week average
- Give bereavement leave to all staff and consider paid carers’ leave
- Allow for collective grievances to be addressed (exact mechanism to be clarified)
- Protect pregnant workers from dismissal for 6 months post-return, with limited exceptions
- Improve rights and protections for employees involved in TUPE transfers
- Forbid unpaid internships, except as part of formal education or training programs
When will these proposals be implemented?
Following the Labour Party’s victory, the proposals will be introduced within 100 days from the 4th July. The Labour Party have said that they will consult with employers, trade unions, professionals and stakeholders prior to the secondary legislation being passed. However, it’s important to note that the New Deal acknowledges that some proposals may take longer to review than others.
Transitional arrangements are being put in place to give employers time to prepare for these new changes happening.
What should I be doing as an employer?
As an employer, it is worth looking and reviewing current policies and procedures and ensuring that you implement the appropriate guidelines of the above proposed changes. As previously mentioned, there is a transition period for you to implement any necessary changes.
How can we help?
Kate Frisby is an Associate in our expert Employment Law team, advising on performance management, the drafting of policies and contracts, settlement agreement negotiations and assisting with claims in the Employment Tribunal.
For advice on or further information in relation to the subjects discussed in this article, please contact Kate or a member of our expert Employment Law team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online form.
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