What are the key changes to employment law with a Labour government? | Fieldfisher
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What are the key changes to employment law with a Labour government?

All Change: A Roadmap for the Future of Employment Law

A new Labour Government will bring large-scale changes to Employment Law, with a new Employment Bill promised within the first 100 days of government (so by 12 October 2024). Whilst timescales are as yet unknown, a possible roadmap is set out below.

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July-October 2024

Pre-election law expected to come into effect:

18 July 2024: Code of Practice on Dismissal and Re-engagement.

September 2024: The Predictable Terms Act was expected to come into force. Whilst falling short of Labour’s plans, it could come into force pending further changes.

1 October 2024:  The new Tips Act is due to come into force and aligns with Labour policy.

October 2024: Duty on employers to prevent sexual harassment in the workplace.

12 October 2024

New Employment Bill expected: Labour has committed to  introducing legislation reforming employment law within 100 days of entering office

By April 2025?

Trade union law repeals: The repeal of various limits on industrial action, including higher ballot thresholds in public services, could take effect immediately upon the Employment Bill receiving Royal Assent.

Statutory Sick pay: Removing waiting days and the lower earnings limit can be quickly achieved.

Day 1 family friendly rights: The change to qualifying periods could be made swiftly, depending on what Labour plans in terms of consultation.  Wider reforms may be delayed to 2027/2028.

National living wage: The Low Pay Commission’s remit can be changed quickly. The usual timetable suggests an October announcement, with a new rates in April 2025.

The right to disconnect / switch off: As Labour have already identified comparative (albeit very different) models, this could be seen as a “quick win”, subject to consultation.

By October 2026?

Day 1 unfair dismissal: This Labour priority could be implemented almost immediately using existing powers.  However, consultation is expected, including regarding the effect of probationary periods.

Trade union rights: Consultation may slow the pace, but reform  is expected as quickly as possible. 

Fire and rehire reforms: Further restricting “fire and re-hire” is a key pledge, but perhaps not as pressing as other issues.

Bereavement leave: Regulations are likely to be required to introduce this leave.

Collective consultation: Consultation about the proposal to require more employers to engage in collective consultation could be extensive.

2027 / 2028?

Single worker status: Full consultation is promised on this significant change in employment law. 

Zero hours contracts: Detailed consultation and legislation is expected, but as a priority pledge changes could be fast-tracked to take effect sooner.

Single enforcement body: The single body is expected to be referred to in the new Bill, but implementation may be slow whilst powers, remit, cost and funding are considered and consulted on.

Pay gap reporting: Given the complexity and consultation required, introducing ethnicity and disability pay gap reporting is likely to take time. The requirement to produce action plans to close the gender pay gap may be more quickly implemented.

 

If you would like to discuss these proposals, or how they may impact your business, please contact a member of the Fieldfisher Employment team