Potential impact to Employment law under a Labour government

Some of the key areas of proposed changes include:

1. Single Worker Status Labour plans to create a single status of “worker” for all but the genuinely self-employed. This aims to ensure that all workers have the same basic rights and protections, including sick pay, holiday pay, parental leave and protection against unfair dismissal without a qualifying period (see below). This would be a significant change to day one employment rights and is also likely to include a further change to the Flexible Working Regulations.
2. Enhanced Unfair Dismissal Protections With the proposed day one qualifying period amendment there would be a removal of the two-year service requirement for unfair dismissal claims. This would strengthen the protection for employees by removing the qualifying period for claims, extending protection to all workers, not just employees, removing the statutory caps on compensation and extending the time limit for bringing claims to the Employment Tribunal from three to six months.
3. Ban on Zero-hours Contracts Zero-hours contracts would be banned under Labour’s proposals, with workers on regular hours for 12 weeks or more gaining the right to a stable contract. This change aims to enhance job security but may reduce flexibility for employers.
4. End to Fire and Rehire Practices Labour intends to outlaw “fire and rehire” practices, where employers dismiss employees to re-employ them on less favourable terms. This would involve improving consultation processes and adjusting unfair dismissal and redundancy laws.
5. Right to Switch Off A new “right to switch off” outside normal working hours would be introduced, allowing workers to disconnect from work obligations. This mirrors practices in some EU countries and is commonly known as the right to disconnect.
6. Strengthened Family-Friendly Rights Labour proposes extending statutory maternity and paternity leave, introducing bereavement leave rights, enhancing protections for pregnant women, and reviewing shared parental leave arrangements.
7. Trade Union Reforms There are considerable changes proposed in relation to Trade Unions including repealing recent trade union laws, simplification of union recognition processes, the requirement for employment contracts (section 1 statements) to inform individuals of their right to join a Trade Union. Additionally it is proposed that Trade unions will be given the right to access workplaces for recruitment and organising Trade Union activities.
8. Additional Considerations Employers will also need to consider mandatory reporting of ethnicity and disability pay gaps for large employers, adjustments to minimum wage policies, enhanced protections against workplace harassment (including third party harassment), establishment of a single enforcement body for workers’ rights, and a review of health and safety laws focusing on mental health and neurodiversity.