Following Liz Truss’s appointment as the UK’s new Prime Minister, many have raised the question of whether this could result in changes to employment law, most specifically the Working Time Regulations and TUPE rights which derive from EU legislation.
Below, we have considered some of the changes that could impact employers and their workforce.
Reform of certain EU law
Back in July 2022, the UK’s new Prime Minister said she was committed to reviewing all EU laws retained by the UK and reforming any that are perceived to be restricting the economy by the end of next year. This is likely to be done via the upcoming “Brexit Freedoms Bill” which is expected to outline a new fast-track process for the repeal of retained EU law with a possible ‘sunset clause’ which means some EU law will cease to have any effect on the UK.
The number of retained EU laws could be impacted, including:
- The Working Time Regulations;
- TUPE;
- Agency Worker Regulations; and
- A host of health and safety regulations.
However, it is believed that there will not be any comprehensive repeal of EU law and that the newly formed Government is not considering abolishing the Equality Act 2010.
In respect of the Working Time Regulations (WTR), which impose a limit of 48 weekly working hours (although workers can opt-out of this through their contracts of employment), it is believed that there may be some reforms to the WTR in terms of the calculation of annual leave.
There could be some changes to TUPE rights, particularly with regards to post-TUPE contractual variations which are challenging under this retained EU law but again there will not be any wholesale repeal.
Further potential changes could include the Agency Workers Regulations being repealed.
Strike action
It has been a summer of industrial action in the UK with various services being affected, including rail and post, and it is not looking like this will end any time soon with the cost of living crisis set to continue.
The Government already took action earlier this year when it significantly increased unions’ potential liability for calling unlawful strikes. It also removed the existing restriction which prevented employers from hiring agency staff to fill the void left by workers participating in industrial action.
In addition to the above, Liz Truss has stated that she seeks to implement legislation that will make it more difficult for strike action to take place. This includes:
- Introducing minimum service levels;
- Increasing ballot thresholds supporting industrial action from 40% to 50% of union members;
- The minimum notice period for industrial action could be increased to four weeks (it is currently two weeks);
- Implementing a ‘cooling-off period’ after industrial action; and
- A removal of tax-free payments.
However, these actions are highly likely to be opposed by trade unions and their members, and it could make already fractious working relations even worse.
Other potential employment law changes could include:
- A reversal of the National Insurance increase of 1.25% which came into effect for working-age employees, their employers, and the self-employed in April 2022.
- A review of the current IR35 regulations.
- A short-term expansion to the Seasonal Worker temporary work route to support specific sectors that are experiencing labour shortages.
Comment
Whilst employment law changes could be on the horizon, it is unlikely that any reforms will take place imminently, as there are currently more pressing matters at hand, most specifically, how the Government will support struggling businesses and their staff during the cost of living crisis.
Nevertheless, Liz Truss’ appointment as Prime Minister could have significant consequences for employers and employees.
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For further information or advice concerning the subjects discussed in this article, please contact 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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