TThe Briefing notes to the King’s Speech provide more detail on what can be expected in employment law in the coming months, which is described by Labour as the “biggest upgrade to workers’ rights in a generation”.
Key highlights include:
- The Government has promised to work in partnership with businesses, trade unions and working people to deliver the changes, which they have described as vital to their growth strategy.
- Extension of Day 1 Rights to cover parental leave and unfair dismissal protection. An employee currently requires 2 continuous years’ service to claim unfair dismissal and the right to claim unfair dismissal from day 1 represents significant change.
Whilst the details in relation to the extension of unfair dismissal rights remain unclear, it is expected that the new law will mean that employers could still dismiss an employee for failing probation but only after following a fair and transparent process. It is anticipated that probationary periods will be limited to 6 months. At the time of writing the details of how probationary periods will work in practice have not been published.
- Flexible working will become a default right from Day 1 for all workers. Employers will be required to accommodate the request unless it is not reasonable to do so. According to press reports this will include the right to request a 4-day working week.
- Banning “exploitative” zero-hour contracts to bring an end to “one-sided flexibility” and ensure all jobs provide a minimum standard of job security and predictability. Workers will have the right to a contract that reflects the number of hours they regularly work and requires that reasonable notice of any changes in shifts are provided, with proportionate compensation for any cancellations or reduction of hours worked.
Since the Kings Speech, Labour has stated that it will not go ahead with the Predictable Terms Act. This was introduced under the previous Conservative government and was expected to come into force in the autumn. The Act would have given workers a right to request a more predictable working pattern, but Labour wants to go further and introduce a right to ‘have’, not just ask.
- Ending “Fire & Rehire.” Current legislation will be amended to provide effective remedies for workers who are subject to this practice, with current rules in this area being described as inadequate.
- Strengthening Statutory Sick Pay. The lower earnings limit will be removed so SSP is available to all workers, with the waiting period also removed so SSP is payable from the first day of absence.
- Strengthening Protections for New Mothers. It will be unlawful to dismiss a woman who is pregnant for 6 months after her return to work, except in specific circumstances (details of which are yet to be published).
- A Single Enforcement Body.
A new body will be established, to be known as a “Fair Work Agency”, to strengthen the enforcement of workplace rights which will be in addition to the current Employment Tribunal system which deals with individual claims. The Government has also indicated that the time limit to be bring a claim in the Tribunal will be extended from 3 months to 6 months.
- Updating Trade Union Legislation. “Unnecessary” restrictions on trade union activity will be removed, to ensure relations between employers and trade unions are based on good faith negotiation and bargaining. The process of statutory recognition will also be simplified, to ensure workers and union members have a reasonable right to access a union within a workplace.
- In addition, a new Equality (Race and Disability) Bill will ensure the full right to equal pay for ethnic minorities and disabled people, which the briefing notes claim will make it easier for them to bring pay discrimination claims. It will also introduce mandatory ethnicity and disability pay reporting for employers with 250+ employees to help close the ethnicity and disability pay gaps.
Other measures the Government is committed to are the “Right to Switch off”, a right of workers not to work beyond their core hours and extending the Worker Protection (Amendment of Equality Act 2010) Act 2023 which comes into effect from 26 October 2024. This places a new duty on employers to take ‘reasonable steps’ to prevent sexual harassment of employees and the Labour Party wishes to take this further by making it clear that the employer will be liable for the actions of third parties for example customers and clients of the employer.
Labour has also indicated that it intends treat an allegation of sexual harassment as amounting to “whistleblowing.” This may lead to a rise in claims by employees seeking to link their dismissal or any alleged detriment to an allegation of harassment, for the purposes of pursuing a whistleblowing claim. No particular period of service is required to pursue a whistleblowing claim.
Whilst the new Labour Government has stated that it will be consulting with business organisations about the possible effect on the above measures on jobs and business it is already clear that the changes to employment law will have significant implications for employers. Businesses of all sizes will need to consider what changes will be required to their HR practices to prepare for and comply with the new requirements.
I will provide further updates in this column as the Employment Bill progresses through Parliament in the meantime, if you would like advice on a particular area please contact me.
Alec Colson is a solicitor and Head of Employment Law at Taylor Walton LLP and advises the Bingo Association on employment matters. He can be contacted on 01582 390470 or via email – alec.colson@taylorwalton.co.uk
