I wonder what changes Labour are making and what I need to do to prepare for these changes?

As the new Labour Government takes office, businesses and employees alike are anticipating significant changes to employment law. Labour’s manifesto has set out ambitious plans to reform workplace practices, focusing on enhancing workers’ rights and promoting fairer conditions.

In this article, we explore the key changes proposed by the Labour Government and offer guidance on how employers and employees can prepare for the evolving landscape.

The First 100 Days

In the first 100 days of office, the Labour Government have outlined several key employment reforms aimed at strengthening workers' rights and improving working conditions. Here’s a summary of the major initiatives they plan to implement:

• Abolishing “exploitative” zero-hours contracts: The Labour Government intends to eliminate “exploitative” zero-hours contracts, providing workers with more stable and predictable employment terms.
• Restricting “fire and rehire” practices: Fire and rehire refers to the practice of firing an employee and rehiring them on different terms and conditions – usually less favourable than their prior position. The Labour Government intend to implement additional processes that employers are required to follow if they wish to carry out this practice.
• Raising the minimum wage: The minimum wage is set to be increased to a Real Living Wage to ensure fair pay for all workers.
• Introducing sectoral collective bargaining: The Labour Government will reinstate sectoral collective bargaining, allowing trade unions to negotiate minimum pay and conditions across entire industries.
• Reforming employment status: The distinctions between employees, workers, and the self-employed will be clarified to prevent misclassification and ensure proper rights and benefits.
• Enhancing family-friendly policies: The Labour Government will extend paid parental leave, introduce paid carers’ leave, and make flexible working a default option for all jobs.
• Improving workplace equality: The Labour Government plans to enforce stricter anti-discrimination laws, close the gender pay gap, and promote greater diversity in the workplace.

Day One Rights

The Labour Government plans to make several employment rights effective from "day one" of employment. According to the Labour Government, these "day one" rights are designed to enhance job security, promote work-life balance, and ensure that all workers receive fair treatment from the outset of their employment. Here’s a summary of the key "day one" rights the Labour Government intends to introduce:

• Right to parental leave and pay: The Labour Government will extend parental leave and pay entitlements to be available from day one of employment, providing support to new parents without the need for a qualifying period.
• Right to protection from unfair dismissal: Employees will gain protection from unfair dismissal from their first day, strengthening job security and ensuring that dismissals are fair and justified.
• Right to paid sick leave: Workers will be entitled to paid sick leave from day one, ensuring they can take time off when ill without financial penalty.
• Right to join a trade union and collective bargaining: Employees will have the immediate right to join a trade union and participate in collective bargaining, reinforcing their ability to negotiate better terms and conditions.

Other Notable Changes

• Right to switch off: Employees will gain legal rights to disconnect from work-related communications outside of working hours. This is to assist in protecting work-life balance, reduce burnout, and ensure mental well-being by preventing work from intruding into personal time.
• Ban on unpaid internships: The Labour Government plan to prohibit unpaid internships to ensure that all workers, including interns, are fairly compensated for their work. The Labour Government hope this will promote equal opportunities by ensuring internships are accessible to everyone, regardless of their financial background, and prevent exploitation of young workers.
• Strengthened redundancy protections: Employees will gain enhanced redundancy protections, particularly for vulnerable groups like pregnancy women, new parents, and those with long service. The Labour Government aim to provide greater job security and fairness, with specific protections against discriminatory or unjustified redundancies.
• Menopause Action Plans: The Labour Government intend to introduce the requirement for large employers with more than 250 employees to produce Menopause Action Plans. This is to ensure that employees going through menopause are sufficiently supported and reasonable adjustments are offered.

How to Prepare for these Changes

Given the scope of the Labour Government’s proposed reforms, both employers and employees should start preparing now. Here are some practical steps to take:

• Stay informed: Keep abreast of legislative developments as the Labour Government begins to implement its agenda. Regularly consult with legal professionals to ensure compliance with new laws as they come into force.
• Engage with employees: Open communication with employees about potential changes can help mitigate uncertainty and foster a collaborative approach to implementing new policies.
• Review contracts and policies: Begin reviewing employment contracts, handbooks, and workplace policies to ensure they align with the anticipated changes. This might involve renegotiating terms or updating company practices.
• Budget for increased costs: Whether it’s higher wages, enhanced benefits, or additional administrative burdens, many of the Labour Government’s proposed changes will increase costs for employers. It’s crucial to start budgeting for these now to avoid financial strain later.

The Labour Government is set to introduce sweeping changes to employment law, aimed at enhancing worker protections and promoting fairer working conditions. While these changes are designed to benefit employees, they also present significant challenges for employers. By staying informed and proactive, businesses can navigate this new landscape successfully, ensuring they remain compliant while continuing to thrive.

Our Peace of Mind Team will keep all our clients up to date with the changes as more information becomes available and our Document Audit Team can help draft or amend relevant policies. Contact our Employment Law team by emailing employment@warnergoodman.co.uk or by calling 023 8071 7717.