The results are in! Following 14 years of a Conservative government, the British public have voted for a change.
In terms of what this change means for employment law, Labour promised to bring forward an employment bill of rights within its first 100 days of coming into power as part of its “New Deal for Working People”. As of today, that clock starts ticking.
But how will this affect businesses and individuals? Without a crystal ball it is hard to know exactly, although the following proposals (as set out in the New Deal for Working People) give us a good indication of what is to come.
Reform of employment status. Labour plans to “simplify” employment status by eliminating the current distinction between employees, workers, and self-employed. A new framework has been suggested where people are either workers (both employees and those who are currently considered to be workers) or self-employed.
Unfair dismissal update. This is perhaps one of the most extensive proposed reforms. Labour has suggested that the 2-year minimum continuous employment period for unfair dismissal rights will be removed, making this a day one right. Labour has clarified however that dismissal will still be allowed during or at the end of a probationary period. Collective redundancy consultations (i.e. for consultations where 20 or more employees are at risk of redundancy) will also be amended so that the right to collective consultation will be based on the number of people impacted across the business rather than in one workplace or site.
While there were talks of Labour removing the cap for unfair dismissal awards, this idea has been scrapped.Increase in Minimum Wage. Labour intends to implement a “genuine living wage” which will reflect the increase in cost of living. Age-related pay bands will also be removed for Minimum Wage entitlement.
Amendments to Statutory Sick Pay. The lower earnings limit for Statutory Sick Pay is said to be removed, and Statutory Sick Pay will likely become a day one right. Pay amounts will also be reviewed and may be increased.
Pay reporting. Currently, many employers already disclose their gender pay gap figures. Labour has proposed to introduce mandatory ethnicity and disability pay gap reporting for employers with over 250 members of staff. Labour would also extend the right to make equal pay claims to black, Asian and minority ethnic and disabled workers (currently equal pay claims are limited to sex).
Enhanced rights for parents and carers. This proposal includes extending statutory paternity leave, introducing a right to bereavement leave for workers, and extending protection against discrimination for women returning from maternity leave for 6 months from their return to work.
Day one right to flexible working. Consolidation to recent changes to flexible working rights.
Protection against exploitative employment practices. Labour will ban exploitative zero-hour contracts, wording which potentially leaves the door open for some form of zero-hour contracts to remain. Workers will also be entitled to a new type of contract that reflects the hours they regularly work over a 12 week period. Crucially, Labour will effectively limit “fire and rehire” practices, including updating the ACAS code of conduct on this. Plans have also been announced to ban unpaid internships which are deemed to be exploitative.
Enhancing trade union rights. Trade Union legislation is said to be updated to facilitate collective bargaining and improved industrial relations. This will include simplifying existing legislation and strengthening protection for union activities.
The right to “switch off”. Following in the footsteps of some of our European neighbours (such as Belgium or Ireland), a new right to “switch off” outside of working hours has been proposed. The aim behind this is to help workers disconnect from work and reduce stress.
Mental health at work. Labour has made tackling mental health issues a key part of their proposed reforms, to include enhancing mental health considerations in Health and Safety legislation.
Enforcement of employment rights. The time limit for bringing employment claims will likely increase from 3 to 6 months from the act complained of. Labour have also announced their intent to create the “Fair Work Agency” which would be a state enforcement body which would inspect workplaces and take legal action, the goal being to tackle current delays in the employment tribunals.
With the extension and creation of these new rights there is no doubt that employers will have to review their policies and procedures and ready themselves for an increase in claims.
