The Labour Government, fresh off a recent electoral victory, has unveiled a comprehensive plan to revolutionise employment protections, aiming to align them with the future of work. Prominent legal voices are already heralding these proposals as potentially transformative.

According to Labour’s manifesto, the Government is committed to enacting new employment legislation within the first 100 days of its tenure. This legislation will be based on “Labour’s Plan to Make Work Pay: Delivering A New Deal for Working People,” a policy document released in May 2024. The Government has pledged to engage in extensive consultations with businesses, workers, and civil society to ensure that the implementation of these reforms is both practical and effective.

Patrick Glencross, a Senior Associate in Furley Page’s Employment team, has remarked on the significant nature of these proposed changes. He highlighted that some reforms could dramatically impact employers, necessitating prompt adjustments to comply with the new regulations.

“While some changes are expected to be enacted swiftly, others may take longer depending on whether they require primary legislation or can be achieved through secondary legislation or other means,” Glencross explained.

Day One Unfair Dismissal Rights

A notable shift will be the removal of the qualifying period for unfair dismissal claims. Since 2012, employees have needed two years of continuous employment to be eligible to file such claims. The new Government plans to extend these rights from the first day of employment, a move Patrick Glencross describes as “game-changing” for job security in the UK.

“Employers will need to revise their probationary policies and ensure clear clauses in employment contracts, alongside robust performance management and capability processes,” Glencross noted.

Statutory Sick Pay (SSP)

Currently, employees earning below £123 per week do not qualify for SSP. The Government intends to eliminate this threshold, extending SSP to all workers. This change is expected to benefit 1.3 million people, predominantly women, according to TUC statistics.

Additionally, the elimination of “waiting days” will mean SSP will be payable from the first day of sickness, rather than the fourth. This could significantly affect the current practice, as 70% of sick days do not currently qualify for SSP due to the waiting period.

“These changes should prompt employers to enhance their systems for monitoring and managing sickness absence, implementing early intervention strategies,” commented Glencross.

National Minimum Wage (NMW)

The Government is set to legislate that all workers over 18 are entitled to the National Living Wage (NLW), directly affecting those aged 18-20. The status of apprentices within this framework remains unclear. Further adjustments include updating the Low Pay Commission’s remit and establishing a ‘Single Enforcement Body’ for proactive enforcement.

Glencross advises employers to audit their payroll practices to ensure compliance with these impending changes, particularly for employees aged 18-20.

Flexible Working

Since April 2024, flexible working requests have been a “day one” right. Labour aims to solidify this further, making flexible working the default unless impracticable. This includes promoting flexi-time and accommodating school terms and holidays.

“Employers must keep their flexible working policies current and train managers to handle these requests appropriately,” Glencross urged.

Zero Hours Contracts

Labour’s agenda includes banning exploitative zero hours contracts and ensuring workers have contracts reflecting their regular hours, based on a 12-week reference period. Provisions will also be made for reasonable notice of shift changes and compensation for short-notice cancellations.

“Employers should consider offering fixed-hour contracts to regular zero hours staff and review their employment contracts comprehensively,” Glencross recommended.

While the exact sequence of these measures remains unclear, the Government’s commitment to consulting with businesses and introducing a bill within the first 100 days is unmistakable. Companies are advised to prepare promptly for these significant shifts in the employment landscape.