Before securing its victory, Labour set out in its manifesto a comprehensive plan to update employment law, with a promise to introduce legislation within 100 days.
Labour’s biggest proposals included:
- Banning exploitative zero-hours contracts
- Ending ‘fire and rehire’
- Day one rights for unfair dismissal (potentially with a probation period), sick pay and parental leave
- An extension of tribunal time limits for bringing all claims from three to six months
- Single enforcement body on worker rights
- Reform of collective consultation to count all employees across every location
- Strengthening rights in TUPE
- Strengthening protection for whistleblowers
- Making flexible working a default
- Consulting on whether carer’s leave should be paid
- Enhancing redundancy protections relating to maternity
- Introducing a right to switch off
- Removing the lower earnings limit for Statutory Sick Pay (SSP)
- Repealing curbs on unions (requirement that 40% of those entitled to vote on recognition need to vote in a ballot for it to be valid for recognition)
- Ensuring outsourced workers are included in gender pay gap reporting
- Employers to have a menopause action plans if they have more than 250 staff
The party has already moderated its stance on several pledges and made it clear that it will consult the public and employers before passing new legislation. However, having incorporated the entirety of its 26-point plan to 'make work pay' into its manifesto, the new government will expect bills to progress unimpeded through the House of Lords.
Whilst it is easy to make such sweeping promises, it will be extremely difficulty to draft and implement such proposals in an already very complex area of law. There is a practical problem as to how these laws will be amended or created, although several of the party's promises can be achieved through regulation rather than via the slower legislative process. There is also a question as to when such laws will be implemented and whether they will be retrospective or not (e.g. employees currently under two years’ service).
Right to switch off – code of practice
One interesting policy that is currently in discussion involves workers contacted by their bosses outside normal working hours. Labour has stated they are committed to introducing a "right to switch off," inspired by similar policies in Ireland and Belgium. This would involve a code of practice agreed upon by employers and employees, outlining when staff should not be contacted outside of work hours.
Employers who repeatedly breach this agreement could face significant penalties if taken to an employment tribunal. Although such breaches alone may not lead to litigation, they could be used as an aggravating factor in broader claims, potentially increasing compensation awards. Currently, under ACAS guidelines, compensation can be increased by 25% if an employer fails to follow established codes of practice, such as those related to grievances or disciplinary matters.
This right to disconnect could mirror similar legislation in other countries, such as France, and could be particularly relevant in cases of constructive dismissal. While the policy is still being developed, challenges include creating flexible yet comprehensive policies, ensuring consistent application across organisations, and managing compliance.
It is also to be noted that employers will need to navigate issues like global time zones and may need to implement technological solutions to support the right to switch off. Balancing the needs of businesses with employees' rights will be key to the policy's success.
