For the first time in fourteen years, the UK has a Labour government.
A prominent theme throughout Labour’s manifesto was a commitment to significant employment law changes. Our previous blog on ‘the Top 5 employment law changes that are to be expected of a Labour government’ can be found here.
The details of how and when Labour will implement their plans for the “biggest update to rights at work for a generation” is still to be revealed. However, this article explores possible timeframes for the proposed changes on employment law.
Labour’s commitment
Labour have committed to hit the ground running and introduce legislation within the first 100 days of entering government. This would suggest that an Employment Rights Bill should be expected by the middle of October 2024. Also, Labour has committed to a full and comprehensive consultation with businesses and trade unions before passing any new legislation.
The next steps
Certain formalities will now take place following the result of the election. MPs will be sworn in and the formal opening of Parliament – the King’s Speech, which took place on the 17th of July. Typically, an immediate recess would be expected shortly following the King’s Speech. There is a possibility of postponing the summer recess to allow more sitting time for agenda items to be approved by parliament, however, this is yet to be confirmed.
It is very likely that within his Speech, the King will list a new Employment Rights Bill, amongst other proposed bills for the next parliamentary session. The date on which Labour will table the bill is uncertain and will depend upon whether the Bill will be implemented immediately or consulted upon, in line with their promise to consult.
Further, the legislation will have to continue through the parliamentary process in both Houses, with an implementation period as is standard following Royal Assent. Substantial secondary legislation, codes of practices and regulations are also likely to be required to provide accompanying details to the Bill.
Most significant changes to employment law can be expected to be contained within an Employment Rights Bill. This is likely to include a day one right to unfair dismissal protection for ALL workers, prohibition of ‘Fire and Rehire’ tactics, a ban on the use of zero hours contracts and Day 1 parental leave rights.
Quick fixes?
Certain reforms have the potential to be implemented swiftly.
- Trade Union Law repeals. Labour’s proposal to give trade unions greater freedom to organise, represent and negotiate on behalf of their workers could be achieved almost instantly through repealing legislation. The Trade Union Act 2016, the Minimum Service Levels (Strikes) Bill and the Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2022 can all be expected to be repealed.
- National Living Wage (NLW). Within Labour’s plan is a pledge to remove the 18-20 age band on NLW and for the cost of living to be considered. Both reforms can be expected to be implemented quickly with Labour changing the Low Pay Commission’s remit.
- Predictable Terms Act. A significant part of Labour’s employment law reform focused on zero hour contracts, in which Predictable Terms play a crucial role. Whilst this act has already received Royal Assent, it does fail to cover all of Labour’s reforms on zero hour contracts, however, it is likely to be introduced as a bridge to further reform.
- Statutory ‘right to switch off’. An Artificial Intelligence (Regulation and Employment) Bill has already been drafted which labour could quickly adapt to meet provisions for a statutory ‘right to switch off’ and to address what AI and new technologies mean for work, as contained within their manifesto.
- Unfair Dismissal Protection for Employees – currently all employees need 2 years of continuous service to qualify for protection from Unfair Dismissal. Notwithstanding Labour’s proposals regarding the new worker status Labour could (by way of a statutory instrument) immediately abolish the 2 year qualifying period for all employees.
Whilst some of Labour’s proposals may be quick to achieve, Labour acknowledges within their plan that some areas of the New Deal will inevitably take longer to review and implement than others. Proposals such as the movement towards a single status of worker and transition towards a two-part employment framework, will require consultation. Labour has promised to consult in detail on a simpler framework that differentiates and captures the breadth of employment relationship, suggesting reform in this area will not be overnight reform.
Conclusion
Labour have made strong commitments to the introduction of an Employment Bill within the first 100 days of entering government and to extensively consult on legislation. The likelihood is that some areas of reform will be quicker to execute than others. Aside from the standard legislative procedure, the likes of extensive consolation, summer breaks and party conference season may also cause delays.
The speed of implementing Labour’s plans will be seen in due course. Regardless of timescales, there is little doubt that significant changes to employment law are on the horizon and employers will need to stay up to date and prepare for them accordingly.
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