Major employment law changes ahead?

Major employment law changes may be on the horizon now that a new government is in place.  

In Labour’s pre-election plan to make work pay, they pledged to introduce new employment legislation within 100 days of entering government.

The plan contains number of proposals that may have a particular impact on employers.  

Employment rights from day one

Labour is proposing to give all workers basic employment rights, such as sick pay and parental leave, from day one of their employment.

Employees will not have to wait for 2 years to access protection against unfair dismissal.

Employers will still be able to dismiss an employee for failing their probationary period, but only having followed a fair and transparent process.

Employment status

The Government plans to reshape employment status. At present there are three categories of employment – ‘employees’ (with full employment rights), ‘workers’ (not always subject to PAYE or NI contributions) and the self-employed. It is often hard to work out which category a worker should fall into.

Labour proposes a single category of worker that is likely to cover both ‘workers’ and ‘employees’. As such, this will confer a full set of employment rights on both.

Zero-hour contracts

Under the employment law changes, the Government intends to ban ‘exploitative’ zero hours contracts or ‘one-sided flexibility’ contracts.

Contracts will need to reflect the worker’s regular hours, based on a 12-week reference period.

Fair pay and living wage

The government intends to look at linking the National Living Wage to cost-of-living increases. It intends the NLW to be a genuine Living Wage.

In addition, they will look to remove the 18-21 age band. This would have a particular impact on the hospitality, leisure and retail sectors, where under 21s are regularly employed.

Advice on Employment law changes

There have already been significant changes to employment law in 2024 with reforms to holiday entitlement and pay, and the right to request flexible working from day one of employment, to name but two.

Employers need to make sure they have fair and reasonable policies and procedures in place and that they follow these carefully. For support on contracts of employment, drafting policies and procedures, or any aspect of employment law, contact one of Bird & Lovibond’s specialist employment team today:

David Trood
dtrood@bird-lovibond.co.uk
01895 256151

Daniel Arnell
darnell@bird-lovibond.co.uk
01895 256151