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On Tuesday evening, Alison King from BespokeHR joined our weekly client webinar to share with us the highlights on Labour's current and proposed changes to Employment Law.
Here is a summary - it makes for very thought-provoking reading:
The Labour Party has unveiled its ambitious Employment Rights Bill, a cornerstone of its “Make Work Pay” initiative. This comprehensive legislation aims to deliver economic security and foster growth for businesses, workers, and communities across the UK. As the most significant reform to employment law in a generation, the 158-page bill introduces 28 pivotal changes that promise to reshape the workplace landscape.
Day-One Right to Unfair Dismissal Protection
Under current rules, employees need two years of service to bring an unfair dismissal claim. This bill proposes groundbreaking changes, granting unfair dismissal protection from day one of employment. This shift, expected to take effect by autumn 2026, could lead to increased tribunal claims, emphasizing the importance of fair dismissal procedures for employers. While this reform broadens worker protections, discrimination claims, which can be made even before employment begins, remain unchanged.
New Statutory Probation Period
A proposed statutory probation period for new hires will introduce a "lighter-touch" dismissal process deemed fair during this time. The government has suggested a preferred probation length of nine months, although this change isn't anticipated until after autumn 2026. Employers are advised to enhance recruitment practices and regularly review performance during the probation period to ensure fairness.
Day-One Rights for Family Leave
Expanding family-friendly policies, the bill introduces day-one rights to paternity leave, unpaid parental leave, and paid bereavement leave for specific relatives. Previously, employees required significant service time to qualify for such benefits. These reforms aim to support work-life balance and provide security during challenging times.
Strengthened Protections for New Mothers
The bill enhances existing protections for pregnant employees and those on family-friendly leave. This measure ensures that employees are safeguarded during pregnancy and throughout their leave, reinforcing Labour’s commitment to workplace inclusivity.
Statutory Sick Pay (SSP) Overhaul
Statutory Sick Pay reforms remove the lower earnings limit for eligibility and make SSP payable from day one of absence, eliminating the current three-day waiting period. These changes are designed to provide immediate support to workers during illness, promoting health and wellbeing.
Flexible Working from Day One
Workers will gain the right to request flexible working from their first day of employment, unless employers can prove that such arrangements are unfeasible. This reform prioritizes work-life balance and supports modern working arrangements.
Restrictions on Zero-Hours Contracts
The bill addresses "one-sided" flexibility in zero-hours contracts, granting workers the right to contracts reflecting their regular hours and ensuring reasonable notice of shift changes or cancellations. While zero-hours contracts remain available for those who prefer them, these changes aim to reduce exploitation and promote fairness.
Enhanced Protections Against Harassment
Employers will face stricter duties to prevent sexual harassment, including reintroduced protections against third-party harassment. Organizations must take all reasonable steps to safeguard their employees, with stronger regulatory oversight ensuring compliance. This reform came into force on October 26, 2024.
A New Chapter for Employers and Employees
Labour's Employment Rights Bill marks a bold step toward equitable workplaces, aiming to balance the needs of employers and employees. While these reforms enhance worker protections, businesses must proactively adapt to meet the new standards. From fair dismissal procedures to family-friendly policies, this bill is set to transform the UK’s employment landscape, making work both secure and rewarding for all.
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