Election 2024 poll finds noteworthy Labour employment law proposals

Published: 08 July 2024 | by Brightmine

A new poll from HR data and insights provider Brightmine, (formerly XpertHR), has highlighted which Labour employment law proposals are most noteworthy to employers. Chief among these is the removal of the two-year qualifying service requirement to bring an ordinary unfair dismissal claim. HR professionals believe this proposal will have the biggest impact on their organisations.

“There is no question amongst HR professionals that with the dawn of the new Labour Government, change is inevitable. The only question now is what employment law changes will occur and when,” says Stephen Simpson, Acting Content Manager – Employment Law and Compliance at Brightmine. “Our research shows out of the top 10 possible employment law changes detailed within the Labour manifesto, there are three standout proposals that HR professionals said are likely to have the biggest impact within their organisation,” he adds.

In the Brightmine poll, the top three proposals from Labour that are causing concerns are:

1. Removal of the two-year qualifying service requirement to bring an ordinary unfair dismissal claim (54%)

Under current employment law, employees must have two years’ service to claim ordinary unfair dismissal. Labour proposes making this a day-one right, calling the current qualifying period arbitrary. They assert this change won’t prevent fair dismissals for capability, conduct, redundancy or probation, but details on fair and transparent processes are unclear and will require discussion and consultation.

Practical implications

If the proposal is introduced, employers would need to:

• Exercise more caution in recruitment to select the most suitable candidate.
• Ensure a thorough onboarding processes.
• Review their approach to probationary periods to ensure effective use.
• Invest more in training and development.
• Implement fair performance management processes to identify capability issues early.
• Follow a fair process for all dismissals, regardless of employee tenure.
• Review and update any relevant policies to ensure a fair process for all workers.

2. Employment status reforms (21%)

Currently, UK employment law divides employment status into three categories: employee, worker and self-employed. Each tier has a different level of employment rights. Determining which classification an individual sits in is not straightforward, especially in the gig economy.

Labour proposes merging employees and workers into a single status of worker for everyone but the self-employed, granting workers the same rights as employees. If Labour proceeds with this proposal, organisations that rely heavily on casual workers are likely to be burdened with increased costs.

Practical implications

If this proposal is introduced, employers would need to:

• Review the workforce to assess how many individuals might be impacted.
• Ensure that employment contracts, and policies and procedures align with the new category of worker.
• Update payroll systems to reflect the new worker category.
• Reassess the business model if the organisation is reliant on casual workers.

3. Introduction of a right to disconnect outside normal working hours (11%)

Labour is proposing a “right to switch off” to improve employees’ work-life balance, especially with the rise of remote and hybrid work. While details are limited, Labour cites Belgium and Ireland as examples. Belgium enforces a strict right not to be contacted outside working hours and requires employers with 20+ employees to formalize this right through written agreements. In contrast, Ireland has a softer approach with a code of practice from the Workplace Relations Commission, offering guidance on disconnecting and outlining employees’ rights regarding work outside normal hours. It is yet to be seen which model the new Government will adopt, but Belgium’s robust approach seems more effective for a genuine right to disconnect.

Practical implications

If this proposal is introduced, employers would need to:

• Effectively communicate the new right via an easily accessible policy senior leaders endorse.
• Train line managers to ensure that the right is consistently enforced in all parts of the organisation.

As Labour’s manifesto is made into reality, it’s key HR professionals keep pace with these changes, ensuring compliance and reducing risk. With tools like Brightmine’s HR & Compliance Centre, HR professionals can reduce the risk of non-compliance with resources, templates and proactive guidance crafted by in-house and external subject matter experts.