Government’s Proposed Changes to employment law

2nd September 2024

How might the new Employment Law landscape look?

Following Labour’s move to power, the UK is set to undergo significant changes in employment law if the new government moves ahead with its ambitious plans. Many are eager to see how promised reforms will reshape the workplace and meet objectives to enhance workers’ rights, promote fairness, and address long-standing inequalities. Here’s our breakdown of what to expect.

A New Era of Workers’ Rights

Labour has long championed workers’ rights, and their new government is expected to deliver on key promises made during their campaign. Central to this is the introduction of a new Employment Rights Bill which would include:

Strengthening job security: Labour plans to ban zero-hour contracts, ensuring workers have predictable hours and incomes.
Greater protection against unfair dismissal: Staff will be given more robust protection against being unfairly sacked, with Labour proposing to reduce the qualifying period for unfair dismissal claims from two years to one year.
Rights from day one: Intends to ensure that all workers have full rights from their first day on the job. This includes holiday pay, sick pay, and parental leave.

The National Living Wage and Pay Equity

One of Labour’s most ambitious changes is proposing a significant increase in the National Living Wage. This increase aims to lift millions out of poverty and reduce the need for in-work benefits, which have been a safety net for low-wage workers over recent years.

Additionally, Labour says it is committed to addressing pay disparities. They plan to enforce stricter gender pay gap reporting and extend this to cover ethnicity and disability. Companies that fail to demonstrate progress in closing these gaps could face fines or other penalties.

Trade Union Empowerment

With strong ties to the trade union movement, plans also reflect a desire to re-empower unions. The new government pledged to:

Restore collective bargaining rights: Labour aims to reverse decades of anti-union legislation by strengthening the role of trade unions in negotiating pay and conditions on behalf of workers.
Simplify the process for union recognition: They plan to make it easier for workers to establish and join unions in their workplace, enhancing collective power and ensuring that workers have a stronger voice in negotiations.
Support for industrial action: Labour intends to repeal the Trade Union Act 2016, which made it harder for unions to strike. The new rules will lower the threshold for strike action, giving unions more leverage in disputes with employers.

Fair Workplaces and New Standards

Labour also committed to introduce new standards aimed at creating fairer workplaces. These include:

The four-day workweek: Aiming to improve work-life balance, the government has proposed moving towards a four-day workweek without loss of pay. While this may take time, the party says it is committed to working with businesses to explore how this could be implemented across various industries.
Banning unpaid internships: To ensure that young people from all backgrounds have equal opportunities, Labour plans to ban unpaid internships, arguing that these roles often exploit young workers and favour those who can afford to work without pay.

Addressing Workplace Inequalities

Labour’s agenda includes a strong focus on reducing inequalities in the workplace. Plans include:

Mandating diverse hiring practices: Likely introducing quotas or other mechanisms to ensure that hiring practices are inclusive, particularly at senior levels.
Tackling disability discrimination: The party has promised to introduce new measures to ensure that disabled workers are better supported, including more vigorous enforcement of reasonable adjustments in the workplace.
Support for working parents: Enhance parental leave for more flexibility and better pay to support working parents.

Conclusion

Labour’s proposed changes to employment law are extensive and ambitious. If fully implemented, these reforms could significantly shift the balance of power between workers and employers.

We, workers, and organisations will be watching closely to see how these proposals unfold.