- 31 Jul 2024
- Law Blog
- Employment Law
2024 sees the 100th anniversary of the first ever Labour government. As we embark on a new era of Labour leading our government again after 14 years, what change can we expect to see for Employers and Employees?
1) Employment Rights Bill – What we know so far…
Unfair Dismissal protection from day one: employees will no longer need to work for two years to receive the protection not to be unfairly dismissed, this will begin the day they commence their employment. There will be new rules allowing employers the use of 'fair and transparent' probationary periods but guidance on this is yet to be published.
Parental leave, flexible working, and Statutory Sick Pay rights from day one: employees have been promised eligibility for parental leave from the start of their employment rather than the current 26-week period. Additionally, they pledge to make flexible working 'default', except where it is not reasonably feasible, along with employees immediately upon the start of their employment being qualified for statutory sick pay.
Extended time limits for Employment Tribunal: the time for the presentation of claims will be amended from three months to six. This may well see an increase in Tribunal claims.
Single Status of Worker: a proposal to abolish the current three categories (employee, worker and self-employed) with two clear distinctions of 'worker' and 'self-employed' which will harmonise current and new legislations, allowing those currently classified as a worker to be permitted greater employment rights, comparable to that of an employee. Full details on how this may work in practice are sketchy and will require considerable thought, especially for those within the 'gig' economy.
Sexual Harassment and Whistleblower protection: a duty to take all 'reasonable steps' to prevent sexual harassment in the workplace, with an extension being applicable by third parties due to come into force on 26th October 2024. A proposal to enhance protections for whistleblowers, who report sexual harassment.
Right to switch off: Labour has promised to give all workers the right to 'switch off from work' ensuring a managed work - life balance, notably for remote workers who can regularly be found working longer hours. Many countries have already implemented such measures, which have seen a drop in sickness absences and claims of constructive unfair dismissal.
Ban on Zero-Hour contracts: a promise to bring an end to the much labelled 'exploitive' and 'one sided' contract to provide security for each worker to hold a baseline level of protection and predictability. This will no doubt be favoured by workers but could cause difficulties for some sectors who rely on the need for 'flexibility' in the hours required by their workforce.
Fire and Rehire reforms: 18th July 2024 saw the introduction of the 'Fire and Rehire Statutory Code'. Despite its introduction, Labour will replace the Code with a tighter, strengthened, and enhanced Code owing to the belief the current Code is insufficient. The suggestions so far have been that the process will be banned altogether and harsher penalties to protect against abuse.
Reform of minimum wage: all adult workers will be entitled to receive a wage comparable to national living costs, with the removal of the age bans. This is a great step for employees who are currently receiving a lower income than the cost of living in their area or receive a lower wage simple due to their age, not skill set, however, it will undoubtedly provoke an increase in overheads which may see an increase to the end user.
Family-friendly rights: new rights for bereavement leave for all workers, menopause action plans to be implemented for those with 250 employees or greater, ban on unpaid internships (expect where part of education or a training course), review and possible overhaul of carers leave and greater protection for mothers returning from maternity leave (unlawful to dismiss a woman within six months of her return). Full guidance on these is yet to be disclosed but each could be a great step in ensuring fairness in the workplace.
Trade Union: obligation to advise each new worker of their right to join a trade union within their statement of terms, and affirmation of this during their employment, reformation of various aspects of existing trade union laws, make ballots simpler, new protection from union-related intimidation combined with statutory rights and protections for trade union reps.
2) Equality (Race and Disability) Bill: a Bill to tackle inequalities for ethnic and disabled people:
Introduction of equal pay for ethnic minorities/disabled persons: a new law with the intention to tighten and provide the right to equal pay for ethnic minorities and disabled people. The idea is to make it easier for those individuals to bring unequal pay claims alongside the standard discrimination complaints.
Introducing mandatory ethnicity and disability pay reporting: a requirement for larger employers (250+ employees) to report (alike the current gender reporting). This will expose any pay gaps and enable companies to consider why such pay gaps exist and how to tackle them.
The new government is committed to implementing each of these proposals as quickly as possible, with the Employment Rights Bill to be introduced within their first 100 days in parliament. It is anticipated we will see the start of the simpler changes to current legislation to be introduced fast, or at least by mid-October 2024. The Equality (Race and Disability) Bill is yet to be considered thus will most likely take a while longer.
It is quite possible that these proposals will go through multiple changes and amendments, with some not being introduced as both Bills require full consideration and agreement before being passed and formally implemented.
What is clear, is change is coming, along with a new era for both employees and employers. To get ahead and minimise any impact the new era may have on your business, please contact our Employment Law Team on 0800 542 4245 or info@sillslegal.co.uk