Following a landslide majority at the 2024 General Election, the UK has its first Labour Government since 2010. A large part of Labour’s Manifesto was their 'Plan to Make Work Pay'; a comprehensive reform of the workplace, promising to “deliver the biggest upgrade to rights at work for a generation”. Despite proposing expansive change within the Manifesto, Labour endeavour to introduce legislation to Parliament within 100 days of entering Government which means we could be seeing vast changes to Employment Law as soon as October 2024. So, what are they key proposals Labour have promised to introduce?
Introducing basic Day 1 rights for all workers:
Labour proposes to make all basic individual rights Day 1 rights for all workers. Currently the majority of claims flowing from a dismissal are only able to be pursued by employees who have the requisite two years of service (as is the case with unfair dismissal claims), with only prescribed circumstances allowing for claims to be brought from Day 1 of employment (for example where there has been discrimination or an automatic unfair dismissal). By removing this two-year qualifying period for certain claims, Labour is making immediately accessible basic rights of protection against unfair dismissal, and in respect of parental leave and sick pay. Not only will this provide flexibility for individuals and alleviate the risk they bear in moving jobs before such security is afforded in the current system, but Labour have also assured employers that this will not prevent fair dismissals, nor probation periods being implemented at the start of employment. The impact this change will have on processes used by employers cannot yet be predicated (i.e. will companies extend probation periods for longer, or wish to be more cautious at the recruiting stage to avoid a “bad hire”?), and it remains to be seen how this proposal will materialise within any proposed legislation, after Labour consult with businesses.
Extension of time limits to bring Employment Tribunal claims:
Whilst lodging a claim with the Employment Tribunal currently has to be done within the strict three-month time limit, Labour proposes to double this and set a new time limit of six months (from the effective cause of action) to bring a claim – not only is this a recommendation the Law Commission made in April 2020, but it also brings the limitation period in line with the time limit for statutory redundancy/equal pay claims. The rationale is to allow more time for potential parties to hold valuable settlement discussions or complete internal processes, meaning employees do not have to act quickly to protect their position, in theory, reducing the number of claims ultimately being lodged. Alongside a push to further digitise Employment Tribunals, Labour hope to provide quicker and more effective resolutions for those involved in Employment Claims.
Introducing a right to disconnect outside of working hours:
Acknowledging the importance of flexible working, Labour intends to “embrace technological advancements in a way that ensure both workers and our economy benefit”. Labour also recognises, however, that increased flexibility has resulted in the boundaries between a workers’ home and work life becoming blurred, and plan to introduce a ‘right to switch off’. The Manifesto points to similar models already in place in Ireland and Belgium, which allow for employees to not be contacted outside of working hours and to face no disadvantage for not working beyond their normal hours (albeit there are differences between the two systems, as the Belgian model is enshrined in legislation whilst Ireland’s is outlined within a Code of Practice and therefore not legally binding). It has not yet been particularised exactly how Labour plans to introduce this right within England & Wales, and again it will be interesting to see how the right to switch off is implemented following consultation with businesses, employees, and trade unions.
A single employment status for all ‘workers’:
At present, the UK has a tiered system with three employment statuses: employees, self-employed, and workers. Each status affords different individual rights and protections, and as such it is crucial for employers/employees to know which tier a role falls within. The Taylor Review of 2017 outlined a need for “greater clarity for individuals and employers”, recognising the risk of vulnerability and exploitation for those unsure of their employment status. Labour’s proposed resolution is their suggestion to move towards a single status of worker, a simpler framework which only differentiates between workers and the self-employed. This two-part framework is intended to prevent employers exploiting the complexity behind employment status to avoid legal obligations and increase flexibility to compliment the changing employment landscape. It is Labour’s hope that with simplicity will come a reduction in the number of claims being lodged at the Tribunal, either to discern what an individual’s employment status is, or to seek compensation as the correct rights or protections have not been afforded to a worker.
Labour’s Manifesto contains a wide breadth of changes beyond those mentioned above (spanning changes to the redundancy consultation process, the ban of “exploitative” zero-hour contracts, allowing employees to lodge collective grievances, tackling harassment in the workplace, and the right to bring equal pay claims based on race and disability). Labour’s ‘Plan to Make Work Pay’ undoubtably proposes the most thorough reform that Employment Law has seen in recent years and with implementation supposedly imminent, we may be seeing vast reform take place by the end of this year.
If you wish to discuss this further, or if you have any other employment law enquiries, please contact Rebecca Ellerbeck and Lucy Marshall of Rowberrys at employment@rowberrys.co.uk