What employment and immigration law changes can we expect from the new Labour Government?

Meet the new boss; the same as the old boss?

Roger Daltrey would have you believe that nothing ever really changes where a new government is concerned,  but the Labour party’s landslide victory should usher in some widespread changes. As part of the party’s manifesto, Keir Starmer promised to bring in significant changes to employment and immigration law within 100 days of power. Whilst full details are still unknown, here is an analysis of what we could be seeing over the next three to four months:

• Increasing the minimum wage into a “genuine living wage” to take account the cost of living. There is also a suggestion that the age bands will be removed; the current National Living Wage is only payable to those 21 years and older, so it seems as though all workers from 16 and over could soon be entitled to the same wage.
• Ending fire and rehire to prevent workers from being victims of “bullying threats” when an employer seeks to change terms and condition of employment. A statutory code of practice was issued by the previous government in February 2024, but it remains to be seen whether this Labour government will make any changes.
• The banning of, “exploitative”, zero-hour contracts. An outright ban on these contracts was proposed in the 2019, 2017 and 2015 Labour manifestos, so the language in 2024 appears to suggest that some zero-hours contracts will still be allowed. One change which could be made is to impose some obligation on an employer to offer the worker a minimum number of hours of work per week, but maintain that there is no obligation on the worker to accept those hours.
• Large employers – those with over 250 employees – will need to produce “menopause action plans” to outline how they will support employees experiencing menopause. The Equality and Human Rights Commission published guidance in February 2024 to advise that the menopause symptoms could amount to a ‘disability’, meaning that an employer needs to consider making reasonable adjustments to remove any disadvantage to the employee such as offering fans or separate quiet or rest rooms.
• Making it unlawful to dismiss a pregnant woman for six months after their return from maternity leave, except in specific circumstances. The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 already offers extended protection to employees from being made redundant for 18 months after their expected week of childbirth, but this proposal appears to suggest that the legislation will protect returning employees even further.
• Increasing the time window for employees to bring a claim to tribunal to six months. Currently, employees have six months to pursue most claims, but six months for claims relating to redundancy payments.
• Day one rights for protection against unfair dismissal, meaning that employers will have to have a fair reason and follow a fair and reasonable procedure when dismissing any employee. Currently, an employee has to be employed for two years before acquiring this right, although there are some limited exceptions.
• An entitlement to parental leave from the first day of employment, rather than having to wait one year, as is the current position. Currently, parental leave is unpaid and an employee is entitled to 18 weeks’ leave for each child and adopted child, up to their 18^th birthday.
• A move away from the three categories of worker; employee, worker and self-employed. Instead, and a move towards a single status of worker, and a two-part framework for employment status to differentiate between workers and people who are self-employed. This has been an evolving area of employment law for some years, with the emergence of the gig economy blurring the lines between the self-employed and workers –  see the Uber and Pimlico Plumber cases – so it is certainly not a straightforward issue to tackle.
• Increasing protection for whistleblowers, including updated protection for women who report sexual harassment at work.
• A pledge to reduce net migration, although no net migration target has been mentioned.
• Implementing appropriate restrictions on visas, although there are no plans to introduce caps on any of the immigration routes, and there has been no announcement regarding immigration fees.
• Sponsors of key occupations in sectors experiencing shortages including construction, IT and engineering, will be required to comply with a Government workforce plan and fair pay agreement.
• The recent ban on care workers being accompanied by family members introduced by the Conservatives would remain in place, but a new ‘Migration Advisory Commission’ would review the effects of this policy to decide whether it should remain unaltered.
• A review into the increase in the minimum salary an individual on a Skilled Worker visa must be paid – which was increased in April 2024 from £26,200 to £38,700 – and whether this should be amended.
• Tackling the exploitation of migrant workers in the care sector and under the seasonal worker route.

If this new government makes all of the changes set out in the manifesto, we are in for an interesting 100 days and significant benefits for employees all around. We do not yet have all of the details of these proposed changes and, to misquote Harold Wilson, 100 days is a long time in politics, so it will be interesting to see what changes are made and whether employees will significantly benefit as promised.

It therefore remains to be seen whether employees will be smiling and grinning at the change all around, or bitterly resolving that they won’t get fooled again.