The polls are predicting a landslide victory for the Labour Party at the general election on 4 July, 2024. If the polls hold firm, then within a hundred days, a far-reaching Employment Rights Bill will be introduced to parliament.
Called the “New Deal for Working People,” it will introduce rights for day one for all workers, implement work-life balance rules, increase and strengthen statutory sick pay and remove the waiting limit and lower earnings threshold, move towards a single status for workers and employees, and crack down on the gig economy, Self-employed people and contractors will have new rights to a written contract, late payments and be covered by health and safety protections. Zero hours contracts will be banned, more notice for changes to shifts or rotas, more action on the gender, ethnicity and disability pay gaps, including a requirement for larger firms to develop, publish and implement action plans. There will be more rights to collective bargaining and redundancy rights, and the time limit for an employment claim will be increased from three to six months. Employment tribunals will be reformed to provide quicker and more effective resolutions.
Sir Keir Starmer’s Labour Party have pitched themselves as being pro-business and pro-worker. Shadow Chancellor Rachel Reeves said:
“Our plans for growth are built on partnership with business… But we’re committed to the New Deal for Working People. It’s an important part of our economic offer, both to build a stronger and more resilient economy and to ensure that working people benefit from a growing economy.”
Rachel Reeves, Shadow Chancellor
Labour’s “New Deal for Working People” heralds a significant change in employment rights. Here are some of the main points that can affect compliance.
Labour’s plans for the living wage
Labour have committed to “making work pay,” meaning the minimum wage will take into account the cost of living. Age bands will be removed, and there will be more penalties on employers for non-compliance.
Labour’s plans for zero-hour contracts
Labour will end what they call “one-sided flexibility,” meaning all jobs should have a baseline of predictability and a contract that reflects the number of hours they regularly work. They will put in place “anti-avoidance measures” which will ensure all workers get reasonable notice of any change in shifts or working patterns.
Labour’s plans for ‘fire and rehire’
Labour will end the process by which an employer can make an employee redundant then re-engage them on reduced terms and conditions. If a business has no alternative but to restructure, then this must follow a proper processes between workers and the employer. But the law will be reformed to provide “effective remedies” against ‘fire and rehire’ abuse and replace the current statutory code with a strengthened code of practice.
Labour’s plans for day one employment rights
Labour will bring forward individual basic employment rights from day one for all workers. The current system means some workers wait up to two years for protections against unfair dismissal, parental leave and sick pay. However these rights will now be available from day one for all new hires. Employers will still be able to operate probationary periods.
Labour’s plans for worker status
The current three-tier system of employee, worker and self-employed will be reformed with a move towards a single status of worker and a simpler two-part employment status. There will still be a differentiation between workers and the genuinely self-employed, but Labour will take aim at novel use of contracts, particularly in the gig economy, where employers seek to skirt legal obligations.
Labour’s plans for rights of parents and carers
Labour has pledged to review the parental leave system in the first year of office to ensure working familiars are supported. Parental leave will be a day one right. It will become unlawful to dismiss a pregnant woman for six months after her return. Bereavement leave will be clarified and offered to all workers. Labour will also consider introducing paid carers’ leave.
Labour’s plans for the right to switch off
Labour have pledged to introduce a ‘right to switch off’ similar to that in other countries like in Ireland or Belgium, setting contractual terms or bespoke workplace policies agreed to by both parties on being contacted out of hours.
Labour’s plans for sick pay
Labour will strengthen statutory sick pay, removing the lower earnings limit, removing the waiting period and making it available to all workers.
Labour’s plans for menopause leave
Labour will require large employers with more than 250 employees to produce menopause action plans, similar to gender pay gap action plans. Guidance will be published for small employers on measures to consider such as flexible working, and absences.
Labour’s plans for employment tribunals
The time limit within which employees can make a claim to a tribunal will be increased from three to six months. Labour aims to invest in employment tribunals more to provide quick and effective solutions. Labour will also make it easier for workers to raise grievances to ACAS, allowing them to raise collective grievances.
Labour’s plans for health and safety at work
Labour have committed to modernising health and safety legislation with guidance on extreme temperatures and long term physical and mental health. This also includes protections for those with Long Covid. Employers will be required to maintain workplaces and working conditions free from harassment, including third party harassment. Labour will strengthen the legal duty for employers to take all reasonable steps to stop sexual harassment.
Labour’s plans for whistleblowing
Labour have promised to strengthen protection for whistleblowers, including by updating protection for women who report sexual harassment at work. They’ve also pledged to give financial rewards to whistleblowers who expose stolen assets, sanctions breaches and recover misappropriated funds.
The General Election and Compliance – Special Webinar
Every sector could be impacted and every area of compliance is likely to be reviewed by the next government. From overhauls of financial services regulation, reviews of data protection law, closer alignment with EU regulations and an expansion of health and safety protections, the next parliament will see compliance at the centre of the regulatory agenda.
With everything from whistleblowing reform to overhauls of corporate governance, new employment rights like menopause leave and expanded equal pay rules, alongside crackdowns on tax evasion and expansion of the money laundering regulations, organisations large and small should prepare for the outcome of the general election.
This webinar will cover:
- What the main parties are pledging on key compliance areas
- Potential changes to legislation including the Equality Act, sexual harassment and employment rights
- Expected legislation on AML, bribery, sanctions, fraud and economic crime
- Possible expansion of regulations around GDPR, AI and health and safety
- Preparing your organisation for future regulatory changes and new requirements
