Employment Law under the new Labour Government: Anticipating changes and challenges

“For too long now, we have turned a blind eye as millions slide into greater insecurity… People doing the right thing, working harder than ever. Have no doubt – that we will rebuild Britain… everyone [will be] treated with dignity and respect at work”.

The Labour Party’s manifesto outlined significant changes in the world of employment law. Supported by its New Deal for Working People, the reform touches on broad areas of working life. The Party’s platform, historically rooted in workers’ rights and social justice, promises a transformative approach to labour policies. Understanding these potential shifts is crucial for employers, employees, and policymakers as they navigate the evolving landscape.

We recommend UK universities familiarise themselves with some of these potential changes and consider how they will implement and assess their impact and effectiveness.

SUMS is a membership-based higher education consultancy, a registered charity and not-for-profit organisation that provides expert consulting to universities across all professional service areas. This piece is provided for information purposes only and is no substitute for, and should not be interpreted as, legal advice.

Strengthening workers’ rights

One of the cornerstones of Labour’s employment law agenda is the enhancement of workers’ rights. The government is expected to introduce legislation that addresses issues such as job security, fair wages, and working conditions. This could include:

Increase in Minimum Wage: Labour has consistently advocated for a higher minimum wage, arguing that it is essential for ensuring a decent standard of living. We can expect a significant rise in the national minimum wage, aimed at reducing in-work poverty and income inequality.

Job Security and Protection: To counteract the precarity of gig and zero-hours contracts, Labour is likely to push for greater job security. This might involve stricter regulations, or even a ban on the ‘exploitative’ use of zero-hour, temporary and casual work, ensuring that workers receive benefits and protections like those of permanent employees.

Day One protection for unfair dismissal: The current provision of at least two years’ continuous service to qualify for unfair dismissal protection and to bring a claim is possibly going to be replaced with a genuine day one right not to be unfairly dismissed.

Restricting ‘fire-and-rehire’ practices: Limits on the ability to dismiss and re-engage workers has already been covered with the new statutory code of practice which comes into force on 18 July 2024. However, Labour plans to provide a strengthened code and scrutinise dismissal and re-engage more robustly.

Expanding collective bargaining and Union rights

Labour governments have traditionally supported the role of trade unions and collective bargaining. Expect policies aimed at:

New enforcement body for employment rights: The creation of a new Fair Work Agency (FWA) will be responsible for enforcing workers’ rights through inspecting workplaces and taking legal action against non-compliant employers. The FWA will include representation from trade unions and is expected to include health and safety, minimum wage, worker exploitation and discrimination within its’ remit.

Strengthening Trade Unions: Legislation to make it easier for workers to join unions and for unions to operate effectively. This could involve reducing thresholds for strike action ballots and protecting union activities from restrictive legal challenges.

Tackling Inequality and Discrimination

Labour is poised to implement robust measures to address workplace inequality and discrimination:

Gender Pay Gap: Expanding the requirements for gender pay gap reporting, including more frequent disclosures and action plans to address disparities. There may also be initiatives to tackle the pay gap for other marginalised groups, such as ethnic minorities and disabled workers.

Workplace Discrimination: Strengthening anti-discrimination laws and enforcement, such as sexual harassment. This could involve harsher penalties for non-compliance and more support for employees bringing discrimination claims.

Emphasising Work-Life Balance

Recognising the importance of work-life balance, Labour may introduce measures to support flexible working and family-friendly policies:

Flexible Working Rights: Expanding the right to request flexible working from day one of employment and making it easier for employees to adjust their work arrangements to suit their needs. This would include flexi-time contracts, hours that better accommodate working parents, and a ‘right to disconnect’ law for remote workers to protect their personal time when working from home.

Parental Leave: Enhancing parental leave entitlements, including more generous paternity leave and shared parental leave policies. This could also involve increasing statutory pay rates for parental leave to make it more accessible for all families.

SUMS Recommendations

The new Labour government’s approach to employment law will significantly impact the workplace. By prioritising workers’ rights, promoting fair wages, enhancing job security, and addressing inequalities, Labour aims to create a more just and equitable employment landscape. Employers will need to adapt to these changes, ensuring compliance while fostering a supportive and inclusive work environment. For employees, these reforms promise enhanced protections and a greater voice in the workplace.

As these policies unfold, collaboration between government, employers, and workers will be essential to ensure that the benefits of these changes are realised, and potential challenges are effectively managed. The future of employment law under the new Labour government holds the promise of a more balanced and fair work environment for all.

With expertise covering almost all areas involved in Human Resources, policy and employment law, the team at SUMS Consulting would be happy to help in supporting conversations further.

If you wish to discuss further or need any more information, please contact Emma on e.l.ogden@reading,ac.uk