How will the Labour government reform employment law?

The Labour government has made comprehensive proposals to enhance workers’ rights.  The aim is to create a fairer and more inclusive working environment. Here is a summary:

Artificial intelligence

Labour plans to introduce regulations to protect workers from the potential negative effects of artificial intelligence in the workplace.  This includes ensuring that AI systems are transparent and accountable and do not lead to discrimination or unfair treatment of workers.

Bankers’ bonus cap

Labour does not plan to reinstate the bankers’ bonus cap that was implemented after the financial crisis.  Instead, it will focus on other measures to promote fairness and accountability in the financial sector.

Day one rights

Labour proposes that workers should have access to certain rights from their first day of employment.  This includes parental leave, sick pay, and protection against unfair dismissal.  These rights would be available to all workers, with probationary periods for new hires.

Dismissal and re-engagement

Labour aims to ban the practice of ‘fire and rehire’, where employers dismiss workers and then rehire them on less favourable terms and conditions.  This practice has been criticised for impacting workers’ job security and bargaining power.

Discrimination and diversity, equity, and inclusion (DEI)

Labour is committed to promoting equality and diversity in the workplace.  It plans to introduce measures to tackle discrimination and ensure that workplaces are inclusive and equitable for all employees.

Employment status

Labour aims to simplify the employment status framework to provide greater clarity and protection for workers.  This includes gig economy workers and ensuring they have appropriate employment rights and protections.

Ending one-sided flexibility

Labour proposes to ban exploitative zero-hours contracts, which have been criticised for their lack of job security and uncertainty for workers.  It aims to provide greater stability and predictability in working arrangements.

Enforcement of rights

Labour plans to establish a new single enforcement body to strengthen the enforcement of workers’ rights.  This body would be able to investigate and act against employers who violate employment laws.

Equal pay

Labour aims to strengthen protections for equal pay and deal with the gender pay gap.  It proposes measures to ensure that women receive equal pay for equal work and to promote pay transparency.

Family-friendly rights

Labour intends to strengthen family-friendly rights, including parental leave and flexible working arrangements.  It aims to support working parents and create a better work-life balance.

Flexible working

Labour wants to make flexible working the default for all workers from day one.  This would give employees greater control over their working hours and help them accommodate their personal and family responsibilities.

Grievances

Labour plans to improve the grievance process for workers, ensuring that they have effective channels to raise concerns and seek resolution in workplace disputes or mistreatment.

Health and safety

Labour aims to prioritise health and safety in the workplace, ensuring that workers are protected from hazards and that employers are held accountable for providing a safe working environment.

Modern slavery

Labour is committed to tackling modern slavery in supply chains and ensuring that businesses take responsibility for preventing this issue.

Redundancy

Labour proposes measures to support workers during redundancy processes, including providing additional support and retraining opportunities to help them transition into new employment.

Right to switch off

Labour wants to introduce a right for workers to disconnect from work outside of their normal working hours.  This aims to reduce work-related stress and promote a healthy work-life balance.

Sickness and incapacity

Labour plans to review and improve the support available to workers who are sick or incapacitated, including reforming the statutory sick pay system to provide better coverage and support.

Skills

Labour aims to invest in skills development and create more job opportunities. It plans to establish a new body, Skills England, to bring together businesses and trade unions and identify training needs.

Trade unions

Labour intends to update trade union legislation to remove unnecessary restrictions on trade union activity and simplify the statutory recognition process.  It aims to ensure that workers have the right to join a trade union and engage in collective bargaining.

TUPE

Labour aims to strengthen rights and protections for workers affected by Transfer of Undertakings (Protection of Employment) regulations (TUPE).  It wants to safeguard workers’ rights during business transfers or outsourcing.

Wages

Labour plans to deal with wage-related issues, including introducing a genuine living wage that accounts for the cost of living.  It also aims to remove age bands for the national minimum wage, which it considers discriminatory.

Whistleblowing

Labour wants to strengthen protections for whistleblowers, particularly for women reporting sexual harassment at work.  It aims to create a safe and supportive environment for individuals to come forward and report wrongdoing.