Following labours landslide victory in the general election, they are now set to bring significant changes to UK employment laws. Labour’s manifesto included pledges aimed at improving workers rights, and the new government is already making strides to implement these changes. Labours cabinet minister Jonathan Reynolds confirmed that the government would start this process within the first one hundred days.
Unfair Dismissal- Day One Right
Labour has promised to give employees protection from unfair dismissal from the first day of their employment. This will be a monumental shift in employment law, as current protection from unfair dismissal only kicks in after two years of continuous employment. This means employers can only terminate an employee’s employment lawfully after identifying a fair reason and following a fair process as prescribed by law.
Right to Flexible Working- Day One Right
The right to request flexible working became a day one right in April 2024. The Labour Party had now stated that flexible working will be made the default for all workers, except where it is not reasonably feasible from the first day of employment. The aim is that workers could benefit from flexible arrangements, such as term-time options, with a particular emphasis on flexibility for workers with caring responsibilities.
Statutory Sick Pay- Day One of Sickness Right
There will no longer be a four-day waiting period which means that SSP must be paid from day one of sickness, as well as removing the lower earnings limit on SSP.
Parental Leave- Day One Right
Provide day one rights for parental leave for all workers, although employers will be able to operate probationary periods while they assess new hires.
End Fire and Rehire or Fire and Replace
Labour plan to reform the law to provide effective remedies and replace previous statutory code, which it describes as inadequate.
Here are some other changes they plan to make:
While these proposals promise significant improvements for workers, their complexity means that they will not be on the statute books within one hundred days.
The Complexity of Reform
Implementing these reforms is no small task. Drafting legislation in such a complex area requires expertise and careful consideration.
The process of making or changing laws is time-consuming. Primary legislation must pass through debates in the House of Commons and the House of Lords. Even secondary legislation which can be introduced more quickly requires consultation and through review. The practicalities of law-making mean that even the most well-intentioned reforms will take time to implement. Employers and employees alike may face a period of uncertainty as new laws are debated and refined.
Impact on Employers
While the intention behind Labour’s reforms is to enhance workers’ rights, there are concerns about the impact on employers. The potential for increased regulation could add pressure to businesses already navigating complex employment laws. For instance, the introduction of day-one rights for unfair dismissal may lead some employers to dismiss employees with less than two years’ service before the new laws take effect.
Employers might also need to rethink their business models. Companies currently relying on zero-hours contracts might turn to automation, AI, or outsourcing to manage their workforce flexibly. The uncertainty surrounding these reforms may lead to unintended consequences, such as job losses or business closures.
Following the Process
Despite the challenges, there are potential benefits for employers in the proposed reforms. The introduction of probationary periods for day-one unfair dismissal rights could encourage employers to establish clearer processes for evaluating new hires. This focus on probation periods could lead to more effective and fair employment practices.
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Labour’s ambitious employment law agenda promises significant changes for UK workers. However, the complexity of these reforms means that they will take time to implement. Employers must prepare for a period of uncertainty and adapt to new regulations as they emerge. The importance of HR expertise will become increasingly evident as businesses navigates these changes and ensure compliance with the evolving legal landscape.