Following the General Election, Labour outlined their ‘Plan to Make Work Pay’, aiming to give employees more protection and rights in the workplace. Some of these legislative changes will come into force this month, so it’s important that businesses and employers are well prepared.
What changes are Labour making to employment laws?
Allocation of Tips
The most recent change to employment law is the Employment (Allocation of Tips) Act 2023, which came into effect on 1st October 2024.
The Act will ensure employers are acting fairly and being transparent in regards to qualifying tips, gratuities and service charges. The Code of Practice means employers must distribute tips fairly between workers, have a concrete policy in place and keep a record of all tips for three years from the date they were paid.
Preventing sexual harassment
The Government are introducing a duty to prevent sexual harassment in the workplace, taking effect on 26th October 2024. From this date, employers must demonstrate they have taken reasonable steps to prevent future sexual harassment.
Although ’reasonable steps’ has not been defined in the legislation, it is likely employees will be required to carry out training tailored to the workplace and give refresher training regularly, have robust policies in place, and make it clear to employees how to report sexual harassment, as a bare minimum. These steps should set out the standard for workplace behaviour, explain what to do if the employee witnesses or experiences harassment and outline employees roles and responsibilities.
If an employer does not comply, they could have to pay up to 25% more compensation than previously if a sexual harassment claim is made and/or the Equality and Human Rights Commission has the power to enforce the new duty against the employer.
Fire and re-hire
Labour’s plan is set to abolish the practice of dismissing and re-engaging. This refers to firing an employee and then re-hiring them on a different contact, whether this is a change in wages, terms or perks.
Although fire and re-hire is currently considered a last resort, Labour plan to outlaw the practice altogether.
This is a measure included in the new Employment Rights Bill, which is in its early stages and a lot of the detail has not been provided yet so things could change, and it is not expected to come into force until 2026 (though this is also subject to change).
Changes to zero hour contracts
The Government are committed to ensuring employees have a contract that reflects their “normal” working pattern, giving them more structure in their working life, so they can plan around work.
The policy will also ensure employees are given reasonable notice of any changes in shifts or working hours, to give them reasonable time to find childcare if necessary. Compensation will also be paid if shifts are cancelled or curtailed.
This is a measure included in the new Employment Rights Bill, which is in its early stages and a lot of the detail has not been provided yet so things could change, and it is not expected to come into force until 2026 (though this is also subject to change).
Changes to Unfair Dimissal
Basic day one rights are also set to be implemented so employees are protected against unfair dismissal, whereas the current legislation means employees only receive protection after two years.
Labour says it has identified that less people are moving jobs. They hope that improving day one rights acts as an incentive for employees to seek new opportunities and get increased pay.
This is a measure included in the new Employment Rights Bill, which is in its early stages and a lot of the detail has not been provided yet so things could change, and it is not expected to come into force until 2026 (though this is also subject to change).
Right to switch off
After the pandemic, more businesses opted for working from home and hybrid roles, adopting remote working practices and different hours. In some circumstances, this has led to working longer hours and effective home life.
Labour plan to introduce a right to switch off to promote positive working patterns in hybrid and remote roles. They aim to give employees a good work-life balance. Employers who are found to consistently break out of hours working agreements will be penalised.
This measure has not been included in the new Employment Rights Bill and Labour has only committed to introducing it ‘in the future’, and so it could be a long way off, if it ever does become law.
Right to equal pay
Kier Starmer’s Government are also aiming to tackle inequalities in pay for minorities and people with disabilities. Companies with over 250 employees will be required to publish an ethnicity and disability pay gap report, with the aim of closing the gap.
Labour will also ensure outsourced workers are included in any reporting, to outlaw the use of outsourcing services as a way of avoiding equal pay.
This measure has not been included in the new Employment Rights Bill and Labour has only committed to introducing it ‘in the future’, and so it could be a long way off, if it ever does become law.
How can I keep on top of employment law changes?
Employment law and HR best practices are constantly changing, and it can be difficult staying on top of the updates, especially shortly after a change in Government.
Taylor Emmet’s HR Assist is a comprehensive employment law service that can complement your business’ existing HR team. Our team of employment experts will ensure you remain compliant during legislation changes.
To learn more, book a call with one of our employment law and HR experts.