The upcoming general election has stirred much curiosity about the Labour Party’s plans for employment rights. Published on 24 May 2024, Labour’s “New Deal for Working People” aims to overhaul the landscape of employment law.
Labour’s agenda promises significant changes, intending to deliver the most extensive upgrade to workplace rights in a generation. Let’s delve into some of the key proposals that Labour plans to implement if elected.
Zero Hours Contracts and One-Sided Flexibility
Under Labour’s New Deal, ‘one-sided’ flexibility will end to ensure a ‘baseline level of security and predictability.’ This means banning exploitative zero-hour contracts and ensuring contracts reflect actual hours worked over a twelve-week reference period.
Importantly, Labour’s proposal does not aim to eliminate fixed-term contracts. Instead, it seeks to offer more security to workers trapped in uncertain employment situations. This marks a substantial shift towards fairer employment practices.
Fire and Rehire
Labour addresses the controversial practice known as ‘fire and rehire,’ which involves dismissing employees only to re-engage them on less favourable terms. Under the New Deal, this process will follow proper protocols based on mutual understanding between employers and employees.
The New Deal promises to strengthen the existing Code of Practice to ensure effective remedies against abuse. Businesses will still be able to restructure when genuinely necessary, but they must follow a dialogue-based process.
Basic Day-One Rights
Labour plans to introduce unfair dismissal protections from day one of employment. This means workers will have immediate safeguards against unjust termination.
Furthermore, statutory sick pay will be available from the first day of illness, eliminating waiting periods. These measures aim to offer immediate protection and financial stability to all workers. The New Deal also ensures fair probation periods with transparent rules and processes.
Single Status of Worker
Identifying employment status is crucial for determining rights. Currently, the UK has a three-tier system: employees, self-employed, and workers. Labour wants to simplify this into a two-tier system: workers and self-employed.
Labour acknowledges the complexity of this transition, promising detailed consultations. Simplifying employment status aims to tackle bogus self-employment and clarify workers’ rights, although this will be a challenging and lengthy process.
Redundancy Rights
Labour plans to bolster redundancy rights by ensuring the right to consultation is based on the number of people impacted business-wide, not just in one location.
This proposal seeks to offer more comprehensive protection during layoffs, ensuring fairer treatment for a broader range of employees. Enhanced consultation rights aim to make the redundancy process more equitable and transparent.
Family-Friendly Rights
Under Labour’s proposals, flexible working will be the default from day one of employment. Parental leave will also become a day-one right, removing the current service requirement.
The New Deal introduces the right to paid bereavement leave for all workers and examines the benefits of paid carers’ leave. Additionally, it will be unlawful to dismiss a woman who is pregnant for six months after her return to work, safeguarding parental rights further.
Labour also advocates for a ‘right to switch off,’ addressing the blurred lines between work and home life exacerbated by the pandemic. This provides employees the opportunity to disconnect after working hours.
Fair Pay
Labour aims to ensure the national minimum wage becomes a real living wage. They also plan to eliminate ‘discriminatory age bands,’ ensuring fair pay for all age groups.
Collaboration with the Single Enforcement Body and HMRC will be essential to enforce these changes. Labour’s plan seeks to ensure wages reflect the cost of living, offering financial stability to workers across the board.
Voice at Work
Strengthening collective bargaining rights and updating trade union legislation are central to Labour’s vision. They believe this will foster good-faith negotiations and improve industrial relations.
As part of this, Labour will repeal the Strikes (Minimum Service Levels) Act 2023 and simplify the trade union recognition process. These measures aim to protect workers’ rights to organise and strike, promoting fairer workplace practices.
Equality at Work
Labour commits to tackling the gender pay gap and will mandate large firms to create action plans to close it. Employers will also need to report on ethnicity and disability pay gaps.
The New Deal includes a regulatory unit for equal pay and requires large employers to produce Menopause Action Plans. This ensures comprehensive support for employees through various life stages and conditions.
Awareness of neurodiversity in the workplace will be raised, promoting inclusivity and understanding.
Rights at Work
A Single Enforcement Body for workers’ rights will be established, consolidating multiple enforcement agencies. This aims to streamline the protection of workers’ rights.
Labour proposes increasing the time limit for bringing Employment Tribunal claims from three months to six months. Measures to support workers’ mental and physical health and prevent workplace harassment will also be strengthened.
Labour’s New Deal for Working People sets out ambitious plans to transform employment rights and workplace practices. These proposals promise greater security, fairness, and support for workers across the UK.
If implemented, the New Deal could mark a significant shift towards more equitable and transparent employment laws, benefiting both workers and employers in the long term.