The new Labour government has promised us “the biggest upgrade to rights at work for a generation”. But exactly does this mean? Should it fill us with dread? Or is it an opportunity to create a fairer workplace, fit for the modern world?

Expect quite a lot of change

According to Labour’s pre-election promises and the content of its King’s Speech, we can expect to see quite a lot of change in the employment law sphere.  Here’s a taster of just some of what the new government has in store:

1. A ban on ‘exploitative’ zero hours contracts - Labour has previously promised to ban zero hours contracts which unfairly exploit workers. They have been particularly critical of those contracts which appear to provide one-sided flexibility, only for the benefit of the employer. Joining up the dots, what seems most likely is a new statutory right for workers to request a contract that reflects the regular hours they work, but with the option for the employees to remain on a casual contract if they prefer.
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2. Extended protection against ‘fire and rehire’ – The new government appears to acknowledge that there may be very exceptional circumstances which could justify the need to terminate an employee’s existing employment contract, whilst offering them re-engagement under a new one. However, they believe the law needs to be strengthened and the current statutory Code of Practice to be inadequate and in need of reform. We wait with interest to see exactly what reforms the government has in mind.
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3. An increased right to request flexible working - Employees already have the right to request flexible working from day one of their employment. However, presently, employers can often quite readily find grounds for refusing such requests. In turn it can be very difficult for employees to challenge these decisions. Although it is clear that the new Labour government wants to bolster an employee’s right to work flexibly, quite how you write that into law is likely to prove challenging. 

And the big one?

The planned changes outlined above are significant. However, there is a one change that is likely to steal most of the headlines. Labour has committed itself to extending the ambit of so-called ‘day one’ employment rights. In simple terms, employees will no longer have to wait to ‘earn’ certain employment rights. Instead, they will have them from their first day of employment. By far the most significant of these is the proposal to give all workers the right to claim unfair dismissal from day one. Presently, the ability to bring an unfair dismissal claim is limited to employees only.  Typically, employee need to accrue two years’ service before they can pursue an unfair dismissal claim. This gives employers an important opportunity to assess new recruits and terminate their employment more easily if things don't work out. If unfair dismissal becomes a ‘day one’ right, the process of dismissing new employees who don’t work out could become a lot more difficult. 

Although we await clarity on this particular point, the government has indicated that they will still allow employers to apply probationary periods to new employees. However, it is likely that employers will need to ensure that they have fair and transparent rules and processes in place for the policing of probationary periods. They will need to be careful to avoid dismissals which appear to be without reason or cause. Frankly, the law in this area is likely to become significantly more complicated. The risks associated with dismissing employees with even very short service will become much greater. 

This is a genuine area of concern and one which will require careful consideration.

Not long to wait

The changes proposed by the new Labour government are significant. As a result, you might imagine they would want to give careful thought to the best way to implement them. We very much hope they will. However, it is a concern that they have committed to publishing their new Employment Rights Bill within 100 days of entering office.  This would suggest that the bill ought to be published by no later than 12 October 2024.  We question whether it is wise to set such an arbitrary deadline. Given the extent and the importance of the changes proposed, surely we would all prefer them to take the time necessary to make the right decisions and implement the right changes in the right way.

Need more help?

Presently, we wait with bated breath to see quite what form the new Employment Rights Bill will take. As soon as we have more information, we intend to run a seminar which will explain all the key changes and how they will affect your business. Keep an eye on our website, our newsletter and our ‘socials’ for news of when the seminar will take place. We look forward to seeing you there.