Insights

Labour's employment law changes: latest details

2/09/2024

While we wait for the Government to introduce its much-anticipated Employment Rights Bill, some details of what it will contain have come to light through interviews with ministers and other sources.   Here's what we know so far: 

Flexible working:   the Government's skills minister has indicated that changes will require businesses to accommodate flexible working requests, including for compressed hours and other working patterns, unless it is not reasonably feasible to do so.  This would be a shift from the existing legal framework for flexible working, where employers are required to consider a request but can turn it down on various statutory grounds, including detrimental impact on quality or performance.   The proposed reform would place more of a burden on employers to demonstrate why a request could not be accommodated, giving the right to request more teeth than it has at present. 

Zero hours contracts and working hours: “Exploitative” zero hours contracts are to be prohibited (although there is little detail on what will be deemed “exploitative” for these purposes).  Workers will have a right to request and be issued with a contract which reflects the hours they usually work.  It appears (although there is no official confirmation) that Labour is not planning to bring into force the previous Government's right to request predictable working hours, and will instead provide a beefed-up right and a code of practice. 

Right to disconnect: Employers will be expected to agree with staff the arrangements and expectations for out-of-hours contact.   Employers which consistently breach the agreed arrangements could be penalised via a 25% uplift in compensation awarded in an Employment Tribunal claim.   It's not clear at the moment how this will work - e.g. which claims the uplift would apply to - and any uplift in compensation would mean that this right goes significantly further than equivalent rights in various EU states.  

Unfair dismissal:  As has been heavily-trailed, the Government will make unfair dismissal a “day 1 right”, but with provisions allowing employers to operate probation periods.    Although this would be a radical change, we are still waiting for details of how the probation period aspect would work.  The Government also indicated that it intends to extend the right to claim unfair dismissal (as well as other rights) to workers, although it's likely that there will be further consultation before this is brought into effect.

Enforcement:  The Government intends to create a single enforcement body for employment rights, with powers to take enforcement action against businesses which breach employment laws.   There are reports that there would be a system of warnings, with fines imposed for businesses which persist in breaches after warnings from the agency. 

The Employment Rights Bill is expected to be brought before Parliament in October.  Employers should watch this space for further updates. 

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