Following the decision by the Prime Minister, Rishi Sunak, to call a general election on the 22nd May 2024 for the 4th July 2024, parliament was dissolved on the 30th May 2024, having been prorogued on the 24th May 2024. This has impacted upon employment law legislation that was progressing through the parliamentary process and had been expected to become law
Dissolution of Parliament
The effect of the dissolution of parliament is that anything that has not been completed is lost, including employment law matters. However, some employment law legislation was saved during what is known as the "wash up" period - the period between the announcement of the date of the dissolution of parliament and the date it is dissolved. During this period, the Government and the opposition look to pass and thereby save some legislation by agreement.
Employment Law Legislation That Survived
Those employment law matters that did survive the "wash up" process were as follows:-
- Non-Disclosure Agreements: This makes any attempt to prevent the disclosure of criminal conduct via confidentiality clauses within settlement agreements / non-disclosure agreements (NDA’s) void and unenforceable. This legislation survived on the back of the fact that it formed part of the Victims and Prisoners Act 2024 which contained the statutory compensation scheme in relation to the infected blood scandal. Accordingly, that Act was given priority and received Royal Assent on the 24th May 2024. Nevertheless, as we highlighted in a previous post, the new legislation regarding non-disclosure agreements adds nothing new as it duplicates what was already law anyway. That is because it is already the case that confidentiality clauses within settlement agreements / NDA’s cannot be used to prevent the reporting of a crime, as they cannot override the right to make a protected disclosure (i.e. whistleblowing).
- Fire & Rehire: The statutory code of practice on dismissal and re-engagement (aka 'fire & rehire) will come into force on 18th July 2024. Once in force, employment tribunals will have the power to “increase any award it makes by up to 25% if the employer has unreasonably failed to comply with the Code” and vice versa. Nevertheless, as we highlighted in a recent article, should the Labour Party win the general election and form the new Government, then it may repeal the code as part of a ban on fire and rehire
- Tips: Whilst the Employment (Allocation of Tips) Act 2023 had already been given Royal Assent on the 2nd May 2023, no statutory Code of Practice had yet been put in place. This was done during the "wash up" period on the 24th May 2024 - the Code of Practice on Fair and Transparent Distribution of Tips. Whilst commencement regulations are still required, it is anticipated that the legislation will come into force on the 1st October 2024
- The Paternity Leave (Bereavement) Act 2024: This received Royal Assent during the "wash up" period on the 24th May 2024 and will provide a day 1 right for fathers / partners to take up to 52 weeks leave from the date that the mother / primary adopter of the child has died (during the first year of the child's life). The Act will come into force in April 2025.
Employment Law Legislation That Did Not Survive
Nevertheless, some employment law legislation that had been expected to become law prior to the general election being called has for the time-being been lost, although it may be resurrected in some form at some future point, maybe in the next parliament. Whether they are resurrected or not is largely dependent upon decisions to be taken by the next Government.
Legislation Lost
The employment law legislation that was lost includes the following:-
- The Neonatal Care (Leave and Pay) Act 2023
- Limits on non-compete clauses
- The Workers (Predictable Terms and Conditions) Act 2023
- The proposed reintroduction of employment tribunal fees
- Some legislation relating to industrial action, such as minimum service levels during strikes in schools and hospitals
- Proposed changes to the way in which sick notes are issued
- TUPE changes
- New rules for dental graduates
General Election
Which elements of the employment law legislation that did not survive are resurrected is very much dependent upon who wins the general election on the 4th July 2024.
