These proposed changes reflect each party’s priorities and could significantly impact employment law in the UK. It is crucial for businesses to stay informed and prepare for potential legislative shifts following the election. The list below is not intended to be exhaustive but provides an extensive overview, our Employment Team will be holding a webinar on 5th July 2024 to discuss the impacts of the General Election.

Labour Party

The Labour Party has committed to a significant overhaul of employment law, aiming to create a fairer balance between employees and employers. They have pledged that the proposed changes will be implemented within the first 100 days of their administration.

Tribunal and Legislative Changes

• Day One Unfair Dismissal Claims: Employees will have the right to claim unfair dismissal from the first day of employment, removing the current two-year qualifying period.
• Extended Claim Period: The time limit for making employment claims will increase from three months to six months.
• End to Fire and Rehire Practices: New processes will be required for restructuring, limiting the use of fire and rehire tactics.
• Right to Switch Off: A policy to support work-life balance by allowing employees to disconnect from work communications outside of working hours.
• Real Living Wage: The national minimum wage will increase to a real living wage, removing current age bands so all adults are entitled to the same. A figure is yet to be presented.
• Harassment-Free Workplace: Employers will be required to prevent workplace harassment, including by third parties. This was debated in the readings of Worker Protection Act 2024 but was removed by the House of Lords before it was enacted. They will also increase protections for whistleblowers.
• Enforcement Body for workers’ rights: A body that will enforce workers’ rights with powers to inspect workplaces and take action against exploitation

Employment Status

• Ban on Exploitative Zero-Hour Contracts: There will be a ban on zero-hour contracts deemed ‘exploitative’, though the term remains undefined.
• Right to Request Fixed Hours: Zero-hour contract workers can request a contract reflecting their average hours over a 12-week period.
• Consultation on Single Status of Worker: Currently there is a three-tier system for employment status, with people classified as employees, self-employed or ‘workers’. They intend to create a simpler two-part framework to differentiate between ‘worker’ and self-employed.

Family Friendly Rights

• Day One Parental Pay and Leave Rights: Parental pay and leave will be granted from the first day of employment, removing the 26-week eligibility requirement.
• Pregnancy and Maternity Protections: Dismissals of pregnant women will be unlawful for six months after their return, potentially extending protections under the recent Protection from Redundancy Act 2023.
• Flexible Working: The Conservative Government have made this a ‘day one right’ however Labour wants to ensure that flexible working is a genuine default.

Discrimination, Diversity, Equality, and Inclusion

• Day One Sick Pay: Employees will be entitled to sick pay from the first day of employment.
• Menopause Action Plans: Employers with over 250 employees will need to implement action plans for menopause support.
• Ethnicity and Disability Pay Gap Reporting: Large employers will be required to report on pay gaps related to ethnicity and disability.

Trade Unions

• Reversal of Trade Union Act 2016 Changes: This includes reducing required turnout for ballots and shortening notice periods for industrial action.
• Abolition of Strikes (Minimum Service Levels) Act 2023: The Act will be repealed.
• Ballot Reforms: Removal of the fully postal ballot requirement for industrial action.
• Easier Union Recognition: Simplified processes for unions to gain recognition.
• Union Access to Workplaces: Unions will have rights to access workplaces for recruitment and organisation.

Liberal Democrats

The Liberal Democrats focus on enhancing workplace equality, particularly for working parents and disabled individuals, through their 'Fair Deal' manifesto.

Tribunal and Legislative Changes

• Burden of Proof in Tribunals: Employers will need to disprove employment status rather than employees proving it.
• Increased Minimum Wage for Zero-Hour Contracts: A 20% wage increase for zero-hour contract workers during normal demand periods, though ‘normal demand’ is not defined which we anticipate will be a key issue for employers.
• Right to Request Shares: Encourage employee ownership by requiring listed companies with more than 250 employees a right to request shares.

Employment Status

• New ‘Dependant Contractor’ Status: This new category will provide minimum earning levels, sick pay, and holiday entitlements. However, we are unsure how this differs from the current ‘worker’ status as established by the Uber case.
• Fixed-Hours Contract Requests: Zero-hour and agency workers can request fixed-hours contracts after 12 months.

Family Friendly Rights

• Day One Parental Pay and Leave Rights
• Increased Statutory Maternity and Paternity Pay: Doubling to £350 per week.
• ‘Use it or Lose it’ Paternity Month: A month of paternity leave paid at 90% of salary for fathers and partners.
• Parental Leave Policy Transparency: Large employers must publish their parental leave and pay policies.

Discrimination, Diversity, Equality, and Inclusion

• New Protected Characteristics: Introducing ‘caring’ and ‘care experience’ as protected characteristics under the Equality Act. This will include individuals who have caring responsibilities and those who are or have been in care. Employers will be required to make reasonable adjustments for those who have caring responsibilities to allow them to provide that care.
• Diversity Reporting: Large employers to publish data and set diversity targets for gender, ethnicity, disability, and LGBT+ employment.
• Adjustment Passports: Recording and transferring workplace adjustments for disabled employees. This will ensure that equipment a disabled person has received will remain with that person if they wish to change jobs.
• Improved SSP Rights: Sick pay entitlement from day one and removal of the lower earnings limit.
• Name-blind Recruitment: Extend the use of this process to increase inclusion/diversity.

Conservative Party

The Conservative Party plans to maintain the status quo in employment law, with few significant changes proposed. Before the release of the manifesto there was discussion that an issue fee would be introduced for an employee wishing to bring a claim in the employment tribunal, however, this has not been included.

Discrimination, Diversity, Equality, and Inclusion

• Clarification of ‘Sex’ in Equality Act: Legislation will define 'sex' as biological sex.
• Fit Note Process Overhaul: Transitioning fit note issuance from GPs to specialist work and healthcare professionals to reduce default sick leave approvals.