Written by JMW Solicitors LLP
On 22 May 2024, Conservative Party Prime Minister Rishi Sunak announced that a General Election will now take place on 4 July this year. In anticipation of the election, the Labour Party had, earlier in the year, published a Green Paper entitled ‘A New Deal for Working People’, which outlines the Party’s proposals to reform employment rights in the UK if it should be voted into power. The Green Paper sets out a number of proposals which the Labour Party consider will work towards addressing “pay, security, inequality and discrimination”.
Some of the key proposals set out within the Green Paper are as follows:
- Simplifying Employment Status
The law in respect of employment status and the classification of workers is a notoriously complex concept that can often give rise to disputes. The law currently recognises three main categories of employment status: employees, workers and self-employed, each of which has its own accompanying rights and entitlements.
Within the Green Paper, however, the Labour Party has proposed to create a single ‘worker’ status for all individuals who are not genuinely self-employed. If implemented, this will mean that all workers will be afforded the same rights and protections, including rights to sick pay, holiday pay, parental leave and protection against unfair dismissal. It is also hoped that the creation of a single employment status will help to address issues with regards to “bogus” self-employment.
- Day One Protection Against Unfair Dismissal
The Labour Party has also announced its intention to make changes to the law on unfair dismissal in the following ways:
- Making protection from unfair dismissal a day-one right by removing the current requirement for a qualifying period (this is currently two years’ continuous service for ordinary unfair dismissal).
- Removing the current cap on compensation awards made for successful unfair dismissal claims.
The Party has also indicated that it intends to extend the time limits within which claims are required to be brought in the Employment Tribunal. The current time limits for most claims is three months, however it is not yet clear how the Labour Party intends to extend this at present.
- Statutory Sick Pay
The Green Paper has also outlined Labour’s intention to make Statutory Sick Pay (SSP) entitlement a day-one right. Currently, those eligible are required to be absent from work for more than three days before they are entitled to receive SSP payments. In addition to this, the Party has proposed to extend entitlement to SSP to all workers, including those who are self-employed.
- Ban on Zero-hours Contracts
The Labour Party has also proposed to ban zero-hours contracts and contracts that do not have a minimum number of guaranteed hours. Furthermore, the Green Paper proposes that those who work regular hours for periods of twelve weeks or more will be entitled to have a regular contract.
- Ban of “Fire and Rehire” Practice
‘Fire and rehire’ is the practice which involves employers dismissing and re-engaging workers, often on less favourable terms. Whilst this is not a new phenomenon, it has garnered a great deal of attention and criticism in recent years, including from the Labour Party, due to its increasing prominence. The current Government published an updated Code of Practice on fire and rehire only earlier this year aimed at tackling the widespread use of such tactics. It appears as though the Labour Party considers that this does not go far enough, however, and has proposed an absolute ban on the use of this practice.
- The Right to “Switch-off”
The Labour Party has also announced its intention to introduce a right for workers to “switch-off” and disconnect from their work, including the right not to be contacted by their employers outside of working hours in order to ensure that “working from home does not become homes turning into 24/7 offices”. Labour has also suggested that it will look to introduce new rights to protect workers from remote surveillance as well.
In publishing its Green Paper, the Labour Party originally committed to lay down an employment rights bill within the first 100 days should it be elected into power. It is clear that the Party has strong intentions to address employment rights in the UK, however with the General Election now looming, it remains to be seen, if elected, which of these changes we can expect to see and when they are likely to come into force.
This article is for general guidance only and should not be used for any other purpose. It does not constitute and should not be relied upon as legal advice.
If you would like to discuss this article or any recruitment issue in more detail, please contact Simon Bloch of JMW Solicitors LLP either by email at simon.bloch@jmw.co.uk or by telephone on 0161 838 2628.
