Betting odds on the result of the next General Election will tell you that the Labour Party is highly likely to obtain an overall majority. The next General Election will probably take place during the autumn of 2024 and so, as things stand, we will have a Labour government within just over a year’s time. For this reason it is worth considering what the future may look like from an employment law perspective by taking a look at the 2021 Labour Party Green Paper.
On 24 September 2021 the Labour Party launched its proposals for the future of employment laws in a Green Paper (“A New Deal for Working People”). It set out how Labour will “fundamentally change the economy by changing the world of work to deliver an economy built on fair pay, job security, dignity and equality at work”.
This is a non-exhaustive summary of the changes that Labour have proposed and which, because of the likelihood of a Labour government, we may see implemented in 2025. It is safe to say that there will be some significant changes coming our way.
Fair pay Agreements
Labour will reverse the decline in collective bargaining coverage by empowering workers to act collectively via the roll-out of Fair Pay Agreements. These would be sector wide and used to establish minimum terms and conditions, which would be binding on all employers and workers in a particular sector. They would cover issues including pay and pensions, working time and holidays, training, work organisation, diversity and inclusion, health and safety, and the deployment of new technologies.
Single employment status of worker
Labour will end the confusion over whether an individual is an employee or a worker and will introduce a single status of worker “for all but the genuinely self-employed”. It will mean that “all workers, regardless of sector, wage, or contract type, will be afforded the same basic rights and protections. This includes rights to sick pay, holiday pay, parental leave, protection against unfair dismissal and many others”.
Day one rights.
Labour will scrap the two-year qualifying period to claim unfair dismissal. This will become a day one right.
Sick pay and parental leave will also become a day one right. Sick pay will also increase.
Labour has said that it “will strengthen the existing set of rights and protections, including for pregnant workers, whistle-blowers, workers made redundant, workers making unfair dismissal claims and workers subject to TUPE processes”.
Flexible working will become a day one right if it is not already a day one right by that time.
Zero hour contracts
These will be scrapped to “ensure anyone working regular hours for twelve weeks or more will gain a right to a regular contract to reflect those hours normally worked”.
Hire and fire
Labour will end the practice of an employer making an employee redundant and then re-engaging them on reduced terms.
Right to ‘switch off’
Labour will bring in the right to switch off, “so working from home does not become homes turning into 24/7 offices”. This will be a right to disconnect from work outside of working hours and to not be contacted by an employer outside working hours. It will also introduce new rights to protect workers from remote surveillance.
Trade union legislation
Labour will repeal anti-trade union legislation with the objective of removing restrictions on trade union activity. It will simplify the process of union recognition and establish a “reasonable right of entry” to organise in workplaces and lower the threshold around statutory recognition. It will introduce a new duty on employers to inform all new employees of their right to join a union, and to inform all staff of this on a regular basis. The laws on industrial action will also be addressed so that the notice requirements are simplified.
Tribunal claims
Limitation periods will be extended.
Directors may face personal liability for companies who break the law or fail to comply with tribunal orders.
Statutory limits on compensation will be scrapped.
