The Prime Minister's announcement of a General Election on 4 July 2024, made while he was being drenched in a downpour, may be one of the most waterlogged speeches ever made from the steps of Number 10. But if (as is widely predicted) Labour win the election, their manifesto is going to be far from a damp squib for employers and employees, with some radical changes proposed. The party has now released its “Plan to Make Work Pay”, with a range of eye-catching proposals. Although some elements have been watered down from previous announcements, it's still a package of significant changes.
Key elements include:
- Trade unions: employers will be obliged to include a statement in the employment contract that the employee is entitled to join a union. There will be enhanced procedural rights for collective grievances, repeal of strike ballot turnout requirements and minimum service levels, introduction of electronic balloting and simplification of the process for union recognition in a particular workplace. Labour has also pledged enhanced rights for trade unions to access workplaces for recruitment purposes.
- Employment status: Labour will consult on proposals to remove the distinction between workers and employees, as well as introducing further regulation for the gig economy (and rights for union recognition for gig economy/platform workers).
- Employment contracts: Although it appears that zero hours contracts will not be banned outright, workers will have the right to a fixed hours contract reflecting their average hours over a 12 week reference period, with additional anti-avoidance measures. Self-employed individuals will also have the right to a written contract.
- Termination of employment: Perhaps most radically, the right not to be unfairly dismissed will be a day 1 employment right (although with some flexibility during probation periods). The new Code of Practice on fire and rehire will be replaced with a strengthened code and (unspecified) reforms to the law in this area.
- Enforcement: The time limit for bringing a claim in the Employment Tribunal will be extended to 6 months rather than 3. Longstanding proposals to create a single enforcement body for employment law will be put into practice.
- Family-friendly rights: Labour will make it unlawful to dismiss pregnant women and women returning from maternity leave except in limited circumstances. It will also review the system of parental leave, strengthen existing flexible working laws and introduce statutory bereavement leave.
- Discrimination: Employers with more than 250 staff will be obliged to publish data on their race and disability pay gaps, as well as put in place Menopause Action Plans.
- A right to switch off similar to the model adopted in Ireland and in Belgium (although it remains to be seen whether it will be in the form of a code of practice, guidance or an enforceable legal right).
Labour has previously indicated that it intends to start the legislative process within 100 days of taking power - meaning that some of these changes could take effect as early as 2025. In the meantime, employers should start thinking about how they could adapt to these potential changes and align their workforce strategy.
