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What Labour’s changes to employment law mean for you

It’s vital for both client and candidate that we are up to date on the latest changes to employment law.
With a new Labour government in power, there are changes expected within the first 100 days that will impact the way consultants, freelancers and permanent staff will be hired and engaged by companies.
This blog lays out the core updates we’re expecting, that may impact both contractors (Ltd company contractors and those using umbrella companies) and for our clients hiring permanent placements.
Dismissals and tribunal claims
One of the biggest talking points within Labour’s employment law changes is the action of removing qualifying periods for basic rights like unfair dismissal, sick pay, and parental leave so they become day-one rights.
This is likely to impact almost every hire, no matter the industry or contract type – and requires action from your organisation. We are on hand to help explain what this might mean for your particular hires and are already helping clients prepare for the implementation of the new laws.
Simplified worker status
The Labour Party intends to streamline the present, complicated process for job status. It seeks to do away with the current legal distinction between “employees” and “workers” in favour of a new system in which individuals are classified as either self-employed or workers.
What this may look like in practice remains to be seen. But if there are changes in the way employees and workers are taxed, or the benefits they’re entitled to, we may see changes in how many people claim they are employees or workers.
Strengthened worker rights
You can expect action to strengthen existing rights and protections, including for pregnant workers, whistleblowers, workers made redundant, workers subject to TUPE processes and those making grievances.
There will also be an effort to reinstate the School Support Staff Negotiating Body and encourage employers to sign up for the “Dying to Work” charter to support workers with terminal illnesses.
Zero-hour contracts
For businesses and individuals we support, zero-hour contracts aren’t common. When they are used, it’s with workers who are chosen and are happy to engage under these contracts.
Labour intends to ban “one-sided” flexibility, meaning anyone working regular hours for 12 weeks or more will gain the right to a regular contract to reflect hours worked.
The intention of the government’s changes are to protect those they deem as vulnerable and exploited, but hopefully will not impact growth and higher paid workers who operate perfectly happily under a zero-hour arrangement.
Enforcement
There is likely to be an extended time limit for bringing employment tribunal claims increasing to six months. Also, there is an intent to simplify the enforcement of equal pay, which may impact both hiring and internal pay reviews.
Finally, Labour will look to establish a single enforcement body to enforce worker rights.
Got a question?
This is a fluid situation that will be changing day by day as new laws are implemented, but our team are doing extensive research and are already helping clients make changes and prepare for further changes.
If you’ve got a question or would like our support, we’re happy to help.