Employment laws tend to change significantly when there’s a handover in Downing Street, and that’s just what we expect to see in the coming months. Though the Labour government is still settling into its new position of power, we know from the campaign the initiatives they plan to implement.
And some of those initiatives will have a dramatic impact on how UK businesses manage their recruitment and employment processes. In this post, we’re going to take a look at just some of the employment laws Labour has promised they’ll change, as well as outline how UK businesses can prepare and plan for the country’s new employment landscape.
Goodbye to Fire and Rehire Practices
Labour has promised to significantly restrict ‘fire and rehire’ practices, in which a company fires an employee and then offers to rehire them on less favourable terms. With the proposed changes, employers would need a valid reason for engaging in this practice, though accepted reasons are extremely limited. Except for cases where the company is trying to avoid bankruptcy or mass layoffs, fire and rehiring tactics will not be permitted.
Adjustments to ‘fire and rehire’ came into effect on July 18th, but Labour has plans to tighten them even further in the coming months.
Changing the Unfair Dismissal Process
Under current laws, only employees who have worked for a business for two or more years can bring an unfair dismissal claim against the employer. Labour originally said that they would reduce this requirement to one year, though they went even further following the release of the New Deal For Working People proposal, which outlines that there will now be no qualifying time period.
As well as scrapping the time period, Labour has also said that all workers, regardless of contract type, will be eligible to make an unfair dismissal claim. Previously, only employees were allowed to do so.
Zero Hour Contracts
Labour has promised to review and change laws relating to zero-hours contracts. Initially, the government said they would ban zero-hours contracts altogether, though that no longer seems to be the case. Instead, Labour has said it will challenge ‘exploitative’ zero-hours contracts, which tend to lean heavily in favour of the employer. Though it’s unclear exactly what changes will occur, it’s thought that workers will be eligible for compensation if shifts are cancelled at the last minute. Workers who routinely work for an employer will also be eligible to ask for a contract that reflects the average number of hours worked per week, using the previous twelve weeks as a reference point.
Right to Disconnect
Labour has promised to introduce a ‘right to disconnect’ law, which is aimed at preventing employers from contacting workers outside of their usual working hours. This is intended to tilt things back in the direction of workers, who have increasingly found that the line between working hours and personal time has become blurred, especially among remote workers. While it’s still unclear how this looks in practice and which employees will be exempt, it’s thought that businesses will need to establish set working hours for their employees, and then avoid contacting them outside of those hours.
Reducing Inequality and Harassment
Labour has pledged to address issues relating to inequality and harassment in the workplace by proposing a series of initiatives. For instance, they plan to increase protection for women on maternity leave by making it illegal to dismiss the employee within the first six months of their return to work, though exempting circumstances will exist.
Labour has also promised to build on the Worker Protection Act of 2023, which outlines that all businesses must take reasonable steps to prevent gender- and sexual-based harassment in the workplace. Under the changes, businesses will be required to take all reasonable steps, including those promoted by third parties. Businesses with more than 250 employees must produce a Menopause Action Plan, which should detail exactly how they plan to support employees with menopause.
What Can Businesses Do?
Most of the changes outlined above haven’t come into effect yet, but they will soon. Businesses can prepare for the forthcoming changes by keeping up to date on how they can adhere to Labour’s new policies. Additionally, now is also a good time for businesses to review their hiring processes to ensure they always bring on board the right employee.
Get in Touch with Manchester Staff Ltd
If you have any concerns about Labour’s new employee-related laws, then don’t hesitate to get in touch with a member of the team here at Manchester Staff Ltd by calling 0161 532 8252.
