25/07/2024

The King’s Speech highlighted a number of significant employment law changes that the new Labour government intends to introduce in its first 100 days.

At present, these are just broad headlines with little detail about how the government expects them to work in practice. However, a bill is likely to be published in the autumn outlining full details of Labour’s proposed employment law reforms.

The key changes to be ready for, as outlined in the King’s Speech, include:

Day one rights extended

There are a number of employee rights that kick in after eligibility periods or one to two years’ service. Under proposals outlined in the King’s Speech, some of these will become day one rights. Parental leave, sick pay and protection from unfair dismissal will all become available from day one of a person’s employment subject to special rules for probationary periods. Details about the use of probation periods will be key for employers dealing with this significant change.

Zero-hour contracts scrapped

The banning of controversial zero-hour contracts will make sure workers have a right to a contract that reflects the hours they regularly work, based on a 12-week reference period. An updated report on this point suggests it won’t be an outright ban, but employers should not abuse zero-hour contracts and may be required to pay compensation if working shifts are cancelled without sufficient notice being given.

No more fire and rehire

Fire and rehire, or dismissal and reengagement as it is also known, is the practice of dismissing employees and offering them a new contract on different, often less favourable, terms. Reform of the law on fire and rehire and fire and replace is proposed, along with replacement of the current code of practice with a strengthened statutory code.

Easier access to sick pay

The Labour government plans to remove the lower earnings limit (currently an average of £123/week) so that people earning less than this can receive sick pay. The three-day waiting period for statutory sick pay will also be removed, meaning statutory sick pay must be paid from day one of sickness.

Flexible working by default

Flexible working became a day one right on 6 April 2024, which means that any employee can request flexible working from the first day of their employment. However, new proposals outlined in the King’s Speech will make flexible working the default for all workers from day one and require employers to accommodate this as far as is reasonable. The aim is to support employees with family or caring responsibilities.

Protecting new mothers from dismissal

Protections will be extended to make it unlawful to dismiss a woman who has had a baby for six months after she comes back to work. There will be certain exceptions, which are yet to be defined.

Improved trade union laws

This includes:

• repealing the law on minimum service levels in relation to industrial action,
• simplifying the process of statutory recognition for trade unions, and
• introducing a right for workers and union members to access a union within workplaces.

Redundancy protection

The government is proposing changes to the redundancy consultation process in relation to when collective consultation is necessary. Rather than this being determined by the number of people impacted on a particular site or workplace, it will be determined by the number of people affected across a whole company. This represents a small change in wording but a significant change in practice.

And finally…

• The Fair Work Agency is to be created to enforce workplace rights.
• A Fair Pay Agreement is to be introduced in the adult social care sector.
• Time limits for tribunal claims will be increased from three months to six months.

Advice on employment law changes in the King’s Speech

It’s fair to say the Labour government has outlined significant employment law changes in the King’s Speech, which all employers need to be aware of.

For expert advice on these proposals or any employment or HR issue, speak to our employment solicitors by emailing enquiry@beswicks.com or phoning our Stoke-on-Trent solicitors on 01782 205000 or our Altrincham solicitors on 0161 929 8494.