How the new Labour government could impact workplace legislation

Now that the Labour Party is in government, they have proposed many potential changes to the current employment law. Employers need to be aware of these possibilities so they can prepare and adapt. Labour have stated that they are aiming to enhance workers’ rights and overall fairness in the workplace.

This article will highlight the key changes that we could see in the future. Even though nothing has been confirmed as of yet, here are some potential legislation changes that you may need to be aware of.

Strengthened Workers’ rights from day one

This proposal would protect workers from unfair dismissals in the workplace. Employees would be protected from their first day in employment, removing the assumption that employers can terminate someone’s employment without a cause or formal process. This would be a monumental shift in employment law as currently, protection against unfair dismissal only begins after two years of continuous employment.

However, Labour have made it clear that this would not result in employers being unable to dismiss an employee for fair reasons such as misconduct or capability, and it also will not prevent probationary periods.

Overall, the main focus of this new legislation is to certify that employers are dismissing shorter serving staff fairly and transparently- whilst keeping a detailed documentation of the employee’s probation performance.

Statutory sick pay from day one

This legislation is one that all employers need to be aware of, as it will increase their total costs. Labour will remove the 4-day waiting period, so that statutory sick pay (SSP) must be paid from day one of sickness. There has been no clarity surrounding the rate of statutory sick pay increasing, meaning that it could remain at the current £116.75 a week.

The right to disconnect

Labour intends to introduce ‘the right to disconnect’ for employees outside of working hours. Many countries globally have already introduced this scheme, and it would give workers the right to:

Not work outside of their agreed hours
Not be penalised for refusing to attend work matters outside of working hours.
Respect a persons’ right to disconnect.

This piece of legislation could be very beneficial for both the employee and employer, as many studies have shown that the act of switching off, also increases productivity in the workplace.

No more zero-hour contracts

Labours view on zero hour contracts are that they are ‘one sided’ and exploitative. They are stating that they will make sure all jobs provide a baseline level of security, and that everyone has rights to a contract.

An image of a desk with a contract being signed

A ban on fire and rehire

Labour is adamant that they will erase fire and rehire culture and that they will reform the law to prevent employers from forcing workers to accept unfair terms under the threat of dismissal from the workplace.

Genuine living wage

In Labours previous political run, they introduced the National Minimum Wage, which helped to narrow the pay gap between men and women, whilst also helping many people become more financially stable. However, this time around, Labour want to take this further and make sure that the minimum wage is a genuine wage that meets the cost of living.

Equality at work

Labour is proposing significant developments in equality and diversity rights, some of the key components are:

Tackling the gender pay gap.
Raising awareness for neurodiversity in the workplace.
From October 2024, employers will be required to ensure that their workplace is harassment free.
Labour will put in place measures to ensure that outsourcing of services can no longer be used by employers to avoid paying equal pay, including for work of equal value, to women.
Understanding womens struggles in the workplace. Labour will requireemployers with more than 250 employees to produce Menopause Action Plans, setting out how they will support employees through the menopause.

Conclusion

Labour’s proposals reflect their pro-worker/pro-business stance and signify a major shift towards a worker centric approach in employment law.

Read more about Labour’s plan to ‘make work pay’ here- https://labour.org.uk/wp-content/uploads/2024/05/LABOURS-PLAN-TO-MAKE-WORK-PAY.pdf

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