The first 100 days of the new government

Alright, employment law enthusiasts (all six of you), the countdown has begun! With the new Labour government settling in, we’re all on the edge of our office chairs, waiting for the big debut of the Employment Rights Bill (“the Bill”).

It’s expected to drop within the first 100 days of the new administration, which, if our calculators are right, lands us around 13 October 2024. So, what’s the fuss all about? Let’s take a look at what’s coming our way!

What’s in the Bill?

Labour made some bold promises before they were handed the keys to Number 10. ‘Their Plan to Make Work Pay’ and manifesto declared that current employment law was “not fit for purpose”. So, what can we expect from this legal makeover?

Quick wins

Labour isn’t wasting time. Some changes might arrive faster than your next Amazon delivery. They’re looking to:

• Scrap the lower limit on Statutory Sick Pay (SSP): Because being sick is tough enough without worrying about qualifying for SSP.
• Set up a single enforcement body: A one-stop shop to help employers stay on the straight and narrow, while cracking down on naughty behaviours like non-payment of wages and modern slavery. Because who wouldn’t want a bit more law and order at work?

Some of these changes won’t even need legislation, so keep your eyes peeled for quick fixes like adjusting the National Minimum Wage to keep up with the cost of living.

A peek into the crystal ball

While we wait for the full details, here’s a snapshot of what could be on the horizon and what we can look forward to – depending on whether you’re cheering or groaning at these changes:

Employment contracts

• Zero-hour contracts: A Thing of the Past? Either a complete ban or a curtailment to stop exploitation is on its way. Gig economy workers, who’ve spent years juggling jobs like professional circus performers, will enjoy the thrill of actually knowing when they’ll work – and get paid – next. The days of uncertainty could be coming to an end, offering a new level of job security that many thought was out of reach.
• Fire and rehire: Remember the P&O debacle of 2022? Labour isn’t banning the practice outright but is making it a last resort with a full consultation process required. So, it’s not completely off the table, but it’s certainly not an easy option anymore.

Day-one rights

• Sick pay: No more three-day waiting period for SSP and no more lower earnings limit —because if you’re sick, you’re sick, and that’s that
• Unfair dismissal: The two-year time restriction to claim unfair dismissal? Gone … but there is still some protection for employers as probation periods are unlikely to be included. Our guess is that failure to pass a probation period may be a potentially fair reason to terminate, but employers will still need to follow a fair , transparent and proper probationary procedure
• Flexible working: It wasn’t in Labour’s manifesto, but we expect it’ll pop up soon. The right to request flexible working could become a day one right, making it trickier for employers to say no
• Parental leave: Details are hazy, but expect some changes on this front too.

Employment status

• Single worker status: Labour’s dream is that everyone except the truly self-employed enjoys the same rights. This one’s been brewing since the Taylor Review in 2017, so it’s about time, right? But hold your horses—it’s a complicated reform that will need some serious planning.

Consultation

• Collective redundancy: The rules on redundancy consultation might change, requiring employers to consider the total number of affected employees across the whole business, not just one location.

Equality

Labour’s got big plans here too:

• Pay gap reporting: Expect to see ethnicity and disability included in the mix
• Outsourcing and equal pay: New rules are coming, along with a push to bring the dormant Section 14 dual discrimination provision of the Equality Act 2010 to life
• Menopause support: Employers may soon need to show how they’ll help employees through the menopause. And for whistleblowers reporting sexual harassment? More protection is on the way.

Parental rights

Some of these might take a while, but keep an eye out for:

• Protection for pregnant workers: It could soon be illegal to dismiss a pregnant worker within the first six months of their return to work, barring exceptional circumstances
• Bereavement leave and paid carers’ leave: Likely additions to the law, along with a review of the parental leave system.

Enforcement

The new Fair Work Agency will have some serious muscle to inspect workplaces and root out unfair practices. Labour wants to roll this one out fast.

Employment rights

• TUPE process: Changes are coming, but we’ll have to wait for the details.
• Tribunal time limits: Expect the time limit for claims to extend from three months to six months
• Collective grievances: Soon, these might be reported to ACAS.
• Right to switch off: We’re waiting on more details, but a workplace policy on the right to unplug after hours is on the cards (see article in Section 2 of this publication)
• Tips: The new Employment (Allocation of Tips) Act 2023 came into force on 1 October 2024 making it illegal for employers to withhold tips from staff. Millions of workers can now pocket every last penny of those tips, gratuities, and service charges – no more sharing with the boss, or taking till shortages or breakages out of the tip jar! This game-changing rule was supposed to hit the scene in July, but after Parliament gave it the thumbs up in May 2023, it took a little longer to roll out.

What should employers do?

At the moment? Not much. Until we get the full scoop, it’s tough to offer concrete advice. For now though, you may want to consider reviewing employees with under two years’ service and whether they should remain employed, as it may well be much harder to dismiss them in a few weeks’ time. It may also be worth you dusting off those old policies you’ve been ignoring and get ready for some potential changes.

We’ll be here to help you navigate the new waters as Labour’s reforms take shape.

In the meantime, keep calm and carry on—big changes are coming, but there’s still time to prepare!