Prior to Labour’s election win on 04 July 2024, their manifesto pledges indicated that significant changes in employment law would be introduced. Here, Daniel Allen in Andrew Jackson’s employment team, explains more about the implications for employers and employees.

As part of the King’s speech delivered on 17 July 2024 two key employment bills were raised: the Employment Rights Bill and the Equality (Race and Disability) Bill.

Employment Rights Bill

Whilst scarce on detail, this bill is expected to deliver on the pledges the Government campaigned on, as set out in its manifesto. The adoption of such pledges will bring an array of key employment law changes, shifting away from the current regime so many have become accustomed to.

Basic day one rights

Arguably one of the biggest proposed changed is the move to day one rights for unfair dismissal. The current regime provides that for an employee to claim for general unfair dismissal (that is a dismissal not relating to a protected characteristic as set out under the Equality Act 2010) they need to have attained two years’ continuous service (known as the qualifying period).

The Government views this as an arbitrary system and allows for new recruits to be dismissed with no proper reason or cause. However, it is important to note that this right is expected to be subject to probationary periods as set out in the contract of employment. This would allow employers to retain a period of assessment for new recruits and their suitability within the business. This will likely make probationary periods a focal point of concern for both employers and employees with contractual wording being more important.

Single status of worker

The current regime identifies working individuals as either an employee, worker or self-employed. This is a complex area of law which relies heavily on the nature of the relationship between the parties (rather than what is written down) and a complex array of case law, which continuously evolves as new cases are brought.

The Government has proposed a shift to single worker status in a bid to create a simpler framework and genuine self-employment. At this stage there is minimal detail on how the Government will be addressing the wording within the bill.

And more……

The above is only a snapshot of headline changes which have been pledged and are expected to be included in the bill. Other areas to be addressed will be statutory sick pay regime (removal of lower earning limit and day one right for all workers); a right to switch off (adoption of a concept applied across other EU countries); strengthening family friendly rights and redundancy rights; a ban on zero-hour contracts; and the end and replacement of fire and re-hire practices.

Equality (Race and Disability) Bill

The objective of this proposed bill is to enshrine in law equal pay for ethnic minorities and those who are disabled, creating a more accessible way for these groups to bring equal pay claims. It is also proposed that an additional reporting requirement will be placed on employers with over 250 employees on ethnicity and disability pay.

What next?

As the wording of the bills, at the time of writing, is yet to be known publicly, it remains to be seen how the Government intends to fulfil their manifesto pledges – and whether all of them will be addressed – through primary legislation and their practical implications. It is important for employers to start considering their current practices, contracts and policies in light of these initial proposed changes to identify at an early stage where changes may be needed.

If you or your business would benefit from the advice and guidance of our Employment team, on any of these matters, please don’t hesitate to get in touch today by calling 01482 325242 or email enquiries@andrewjackson.co.uk.