Read below for details and insight into the newly elected Labour Party's proposed key policies that will affect the employment sector.
Labour proposes significant changes to employment law, increasing protection for workers. They plan to increase the national minimum wage to at least £10 per hour for all ages, and implement a single status of ‘worker’, to include both workers and employees. The right to bring a claim for unfair dismissal and the right to statutory sick pay will apply from day one of employment, they will ban ‘fire and rehire’ practices, and workers will have a right to not be contacted by their employer outside working hours.
Currently, employment law recognises three employment statuses: employee, worker and the self-employed. The difference in status is important because different employment rights are available to each. In basic terms, employees have all the statutory protections, workers have some, and self-employed have none. Labour proposes a single status of ‘worker’ to include workers and employees. This would therefore increase the statutory protection of workers, for example, they would be able to bring a claim for unfair dismissal. A separate category of the genuinely self-employed will remain.
In order to bring a claim for unfair dismissal, employees must be employed for two years. Labour propose making the right not to be unfairly dismissed a right from day one of employment. This would also extend to workers, as explained previously. Labour also plan to remove the cap on compensation for unfair dismissal.
Currently, employees have to wait three days before they receive statutory sick pay. However, Labour plans to make it a day-one right for all workers, including the self-employed.
Under a zero-hours contract, there is no obligation on the employer to offer a minimum number of hours’ work, or for the worker to accept them if they are are offered. Labour proposes banning zero-hour contracts and that anyone working regular hours for 12 weeks or more will have the right to a regular contract.
Labour proposes to increase the national minimum wage to at least £10 per hour for all workers. Currently it is £8.60 for 18-20 year olds and £6.40 for 16-17 year olds and apprentices.
Labour proposes to introduce the right for workers to disconnect from work and not to be contacted by their employer outside of working hours. This has already been enforced in some European countries, including France, and Australia has also passed a right to disconnect.
This is where businesses dismiss employees who refuse to agree to contractual changes and offer to re-employ them on new terms. Labour plan to ban this as an option for employers.
Employees have three months to bring most claims to an employment tribunal. Labour propose to extend this period.
Labour proposes to ban hiring from overseas for employers and recruitment agencies who break employment law. There is also a proposal to reform the points-based immigration system with the intention to bring down migration, focusing instead on boosting skills domestically to address skills shortages.
Andrew Betteridge
Partner and Head of Business & Wealth Division
+44 (0)117 321 8063 +44 (0)7843 265362 a.betteridge@ashfords.co.uk View more