With the Tories 15% - 25% behind the Labour Party in the opinion polls (and in one YouGov poll - 30%), there is a high probability that by January 2025 (i.e. the latest by which the next General Election must take place) the Labour Party will form the next Government.
But what will that mean for employment law?
Green Paper
The Labour Party's position on employment law is set out in their green paper, 'A new deal for working people' (hereafter referred to as the "new deal"). At the last Labour Party conference, they committed to implementing the proposals set out in the new deal into an Employment Rights Bill within 100 days of forming a Government.
So what are the new deal employment law proposals?
Employment Law: New Deal Proposals
The Labour Party's new deal include the following key proposals:-
- Creating A Single Status Of Worker: Currently, there are 3 types of employment status - employees, workers, and the self-employed. Labour plan to amalgamate the categories of employee and worker so as to create one single status of 'worker' who would have the same basic employment law rights. The only people outside of the new category of worker would be the genuinely self-employed.
- Day 1 Unfair Dismissal / Redundancy Pay Rights: Currently, employees must have 2 years of continuous service before acquiring the right to bring a claim for unfair / constructive dismissal, and an entitlement to statutory redundancy pay. Under a Labour Government, workers would have these rights from day 1 of their employment (see our previous article on the pros and cons of removing the 2 year rule re unfair dismissal)
- Increase in Limitation Periods: Currently, the limitation period for most employment tribunal claims is 3 months minus 1 day. Labour plan to double this to 6 months minus 1 day
- Removal Of The Statutory Caps: Labour plan to remove the statutory caps that currently limit the amount of compensation that can be received
- Statutory Sick Pay (SSP): Labour plan to make entitlement to SSP a day 1 right (as opposed to having to wait 3 consecutive days at present), to extend the right to SSP to all workers (including the self-employed) regardless of income (i.e. by removing the lower earnings eligibility threshold)
- A Ban On Zero-Hours Contracts: Labour plan to ban zero-hours contracts - contracts without any minimum in terms of guaranteed hours. Moreover, those who work for 12 or more weeks on regular hours will be entitled to a regular contract of employment
- Increase In National Minimum Wage: An increase in the National Minimum Wage for all workers to £10 per hour
- A Ban On The Practice Of ‘Fire And Rehire’: A complete ban on 'fire and rehire' and enhancement of information and consultation procedures
- A Right To Disconnect: Labour refer to this proposal as a ‘right to switch off‘. A legal right to disconnect refers to a legal provision granting employees the right to disconnect from work communication and obligations outside their regular working hours. It aims to protect employees’ well-being and work-life balance by setting boundaries between their personal and professional lives.
- Other Employment Law Measures: These include changes to trades union related laws, a ban on unpaid internships, and protections against remote surveillance
Looking Ahead
There have been suggestions that some of the new deal proposals on employment law may be "watered down" ahead of the next General Elections. However, following a recent meeting between the Labour leadership and the Trade Union and Labour Party Liaison Organisation (TULO), a joint statement read: "Labour and the affiliated unions had a constructive discussion today. Together we have reiterated Labour's full commitment to the New Deal for Working People, as agreed in July. We will continue to work together at pace on how a Labour government would implement it in legislation."
