The Labour Party’s Employment Law Changes in the King’s Speech

The Labour party had pledged multiple changes to UK employment law as part of their plan “Labour’s Plan to Make Work Pay: Delivering A New Deal for Working People” before they got into power.

In the King’s Speech on 17 July 2024, Labour set out the legislative agenda for their first months in Government. This included a commitment to “make work pay and…legislate to introduce a new deal for working people to ban exploitative practices and enhance employment rights”. What will be the impact on businesses?

Building on the recent article examining Labour’s planned changes to employment law, Steph Marsh, Head of Coodes’ Employment team and Evie White, examine these changes and what they could mean for your business.

Labour Party changes that will form part of the Employment Rights Bill

Keir Starmer, the Prime Minister of the Labour Party’s briefing note states that “the Bill will deliver on policies as set out in the Plan to Make Work Pay” and that “the Plan includes commitments to the following”. This is referring to a list of objectives which points to the conclusion that the Plan might not actually be incorporated into the Bill in its entirety.

With the finer details still being published, employers should be aware that some of the employees’ rights will increase from the start of their employment. The Briefing note also covers gender pay, sexual harassment at work and the menopause. The Bill will be introduced within the first 100 days of the Labour Party coming into power.

The new Equality (Race and Disability) Bill aims to give disabled people and ethnic minorities the right to bring equal pay claims. It will also ensure employers with over 250 employees report on their pay.

The two new Bills

The second new bill, the Equality (Race and Disability) Bill aims to give disabled people and ethnic minorities the right to bring equal pay claims. It will also ensure employers with over 250 employees report on their pay.

Two new Bills from the Labour Party include the Employment Rights Bill and the Equality (Race and Disability) Bill. The Employment Rights Bill delivers the “Plan to Make Work Pay” which we will take a look at below. But what exactly does it cover?

• Banning zero-hour contracts, ensuring that workers have a right to a contract that reflects the hours they regularly work
• Ending ‘Fire and Rehire’ and ‘Fire and Replace’ practices by reforming the law and replacing the statutory code
• Making parental leave, sick pay and protection from unfair dismissal a day 1 right (subject to rules for probationary periods)
• Removing the lower earnings limit and waiting period for Statutory Sick Pay
• Making flexible working the default for all workers from day one. Requiring employers to accommodate this as far as is reasonable
• Making it unlawful to dismiss someone who has given birth for six months after they come back to work (with certain exceptions)
• Creating the Fair Work Agency to enforce workplace rights
• Establishing a Fair Pay Agreement in the adult social care sector
• Updating Trade Union Legislation by removing unnecessary restrictions on Trade Union activity. Abolishing the law on minimum service levels in relation to industrial action
• Introducing a right for workers and union members to access a union within workplaces

How Coodes can help

It is important to stay up to date with the changes under the Labour Party government. Once the Bill has been published (expected in October 2024), there will be limited time to get up to speed. This means you should review existing policies and contracts in good time.

Coodes can assist with advice in relation to any of the proposed changes and how they would affect employers. The team can also help with amending your contracts, policies and other documents to make sure they comply with the new Bill. Coodes’ Employment Team also offers a retainer package, allowing employers access to employment specialists without needing to worry about the cost of individual queries or advice.

Coodes Solicitors, one of the South West’s longest established and leading law firms in Cornwall and Devon, supports businesses to keep up to date with the most recent changes in Employment Law. If you need some friendly advice, call Steph Marsh on 01579 324017 or email steph.marsh@coodes.co.uk.