The changes could see the creation of up to 20 new dual protective characteristics in equality law, the removal of current age bands for adult workers and flexible working established as a day one right, employment law experts predict. 

Speaking yesterday [7 July 2024] on the BBC, Labour MP Jonathan Reynolds said the government aims to bring in day one employment rights and to ban ‘fire and rehire’ practices during the pivotal first 100 days. Reynolds’ comments reinforce the ‘new deal’ for workers outlined under its ‘Make Work Pay’, a prioritisation of focus on workers’ rights in relation to pay security, inequality and discrimination, which could be part of a new Employment Bill.

“Organisations of all sizes will be affected, and employers need to start planning ahead, said Ranjit Dhindsa, head of employment at law firm Fieldfisher.

Added Robert Forsyth, employment lawyer and partner at law firm Michelmores: “Businesses will need to update contracts, policies and probation procedures.”

However, employment solicitor Beverley Sunderland, partner at Crossland Employment Solicitors, argued: “The reality is that changes to both primary and secondary legislation takes time… Therefore, although Labour may start the process within 100 days, it is unlikely to be law in that timeframe… The government will need employment law experts or understand all of the twists and turns in case law, and not leave it to civil servants who do not have that experience.”

Of the sweeping changes ahead, Forsyth emphasised potential changes to the employment tribunal system “given the promise to create a single enforcement body to enforce worker rights. The public sector could also see dramatically increased numbers to meet pledges to find work for disabled employees, employees with health conditions and guaranteed work experience”.

Fieldfisher’s Dhindsa went on to describe specific areas of employment law that could be reformed. “On pay, the National Minimum Wage is set for reform, with a proposal to remove the current age bands for adult workers,” she said. “The NMW has increased each year, and it will be interesting to see how those sectors of the economy that are struggling will cope with the removal of different rates of pay.

“In the area of job security and much debated zero-hours contracts, the Labour Party wants to create a single status of worker, removing the confusion between an ‘employee’ and a ‘worker’. Interestingly, zero-hours contracts are unlikely to be banned entirely but employers must offer regular hours after 12 weeks.

“Labour has also put a focus on strengthening Equality Law. On 26 October this year, a new obligation on employers to prevent sexual harassment in the workplace is coming into force. Labour has proposed strengthening the obligation further by requiring employers to take ‘all’ reasonable steps to prevent sexual harassment, including the obligation to prevent harassment by third parties, and explicitly stating that complaining about sexual harassment is whistleblowing.

“There is also an indication that dual discrimination will be introduced, which could create up to 20 new dual protective characteristics. For example, someone who is older and female could bring a discrimination claim based on this combined characteristic,” Dhindsa said.

“At the moment, equal pay claims can only be brought on the basis of gender,” she said. “In its election manifesto, the Labour Party proposed that this right be extended so that different ethnic groups and the disabled can also bring equal pay claims.

“While employers with more than 250 employees already have to report on gender pay gaps, the Labour Party would like to introduce similar obligations for pay gap reporting in relation to ethnicity and disability, and introduce menopause action plans.

“Work-life balance is another area of focus, with Labour looking to make flexible working a default right from day one. Following a trend set by some European countries, Labour is also looking to introduce the right to disconnect outside of normal working hours.”

Dhindsa also noted the possibilities of introducing the right to raise collective grievances and make unfair dismissal a day one right. “The number of disputes may increase as a result and it is unclear what the impact on probationary periods will be,” she said.

Crossland’s Sunderland warned: “There is also the spectre of unintended consequences. If the law changes to include day one employment rights (subject to a probationary period), then there is the very real possibility that all those employees currently under two years’ service, where the employer is undecided about them, will be dismissed before any new laws come in.”

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