Employment changes proposed under new Labour government

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After the general election earlier this month, workers and business owners should prepare themselves for a host of new changes that are expected to come into force under the new Labour government.

Before the election, Labour outlined several changes to employment law, stating that ‘Labour’s plan will make work pay’. They said this would occur by banning zero-hour contracts, delivering a ‘genuine’ living wage and ending fire and rehire practices.

Employment changes proposed

Labour has said the plan will ensure more people stay in work, make work more family-friendly and put more money into working people’s pockets. It is also hoped that the proposed changes will improve living standards and boost economic growth in the UK.

During the last Labour government, changes were made including lifting basic minimum rights in the workplace by introducing the National Minimum Wage, the 48-hour working week, 28 days paid holiday, parental leave, and greater protection from unfair dismissal.

We have broken down just some of the changes proposed by Labour, which could come into force shortly.

Zero hour contracts

Labour has said it will end ‘one-sided’ flexibility and ensure all jobs provide a baseline level of security and predictability.

This will be achieved by banning exploitative zero-hours contracts and ensuring everyone has the right to have a contract that reflects the number of hours they regularly work, based on a twelve-week reference period.

In addition to this, Labour has said they will ensure workers get reasonable notice of any change in shifts or working time, with compensation that is proportionate to the notice given for any shifts cancelled or curtailed. Meanwhile, workers will continue to have the right to be paid overtime rates as they do now.

Basic day one rights

Labour plans to introduce basic day-one rights. This means that workers will be protected against unfair dismissal, parental leave and sick pay from day one of employment, rather than up to two years.

However, the new rules will not prevent fair dismissal, which includes dismissal for reasons of capability, conduct or redundancy, or probationary periods with fair and transparent rules and processes.

Labour has said the changes will help to ensure that newly hired workers are not fired without reason or cause and will help drive up standards in workplaces.

Fire and rehire

Labour plans to end ‘fire and rehire’ practices, which often force employees to ‘voluntarily’ accept worse terms under threat of dismissal, by reforming laws and strengthening the code of practice.

They will provide basic rights from the first day of employment, including protection against unfair dismissal, parental leave, and sick pay, while allowing fair probationary periods.

Labour also aims to simplify the UK’s complex employment status system by moving to a two-part framework distinguishing workers from the genuinely self-employed, ensuring clarity and preventing exploitation.

Accessible information on employment status and rights will be provided to prevent employers from avoiding legal responsibilities.

Whistleblowers

Labour has also said it will introduce more protections for whistleblowers including updating protections for women who report sexual harassment at work.

Family-friendly rights

Labour plans to make the workplace more ‘family-friendly’ so that workers can enjoy a better work-life balance.

The government wants to give people the right to fit some work around their family commitments, by offering flexible hours and contracts. The party wants to encourage more people to get into work despite their obligations at home.

Flexible working

Labour has said it will embrace technological advancements in a way that ensures both workers and the economy benefit.

It proposes to ensure workers can benefit from flexible working, including opportunities for flexi-time contracts and hours that better accommodate school terms where they are not currently available, by making flexible working the default from day one for all workers, except where it is not reasonably feasible.

The Government has made some welcome shifts on flexible working and consulted on moves to make flexible working the default in workplaces, with many businesses noting flexibility makes good business sense.

Parental rights

The government has said it will review the current parental leave system so that it best supports working families within the first year of the Labour government. Part of this mission plans to reduce the impact of parental income on a child’s opportunities.

Maternity discrimination

New rules have been proposed to strengthen protections for pregnant women by making it unlawful to dismiss a woman who is pregnant for six months after her return, except in specific circumstances. This will give new mothers certainty that the law is on their side.

Bereavement leave

Labour has said it will reform ‘outdated’ laws and introduce the right to bereavement leave for all workers.

Fair pay – banned internships, changes to tips and sick pay

Labour will strengthen the law to ensure hospitality workers in pubs, bars, cafes, and restaurants receive their tips in full, with workers deciding how tips are allocated.

Additionally, Labour will ban unpaid internships unless they are part of an education or training course, promoting social mobility by ensuring all talent has access to essential skills and experience.

Labour government has said it would strengthen statutory sick pay by removing the lower earnings limit to make it available to all workers and remove the waiting period. It has said it will ensure the new system provides fair earnings replacement for people earning below the current rate of statutory sick pay.