The 2024 general election marked the Labour Party’s return to UK Government after 14 years. Amidst ongoing tax increases and cuts to public services, their manifesto promised the most significant changes to the workplace in a generation, including many new employment rights.
Our recent webinar available to watch for free on demand, summarised what employers could expect to see if Labour were elected.
With the Labour Party winning a landslide victory, the next step in the parliamentary process is the King’s Speech This ceremonial event sees the reigning monarch outline the new government’s legislative agenda and policy priorities for the year ahead.
What did the King’s Speech say about employment law?
On 17 July, King Charles III delivered the government’s commitment for the year 2024/25. Amongst other key priorities, it was announced that two new employment Bills would be introduced: the Employment Bill 2024 and the Equality (Race and Disability) Bill 2024. Together, these Bills will progress many of the key proposals for change that Labour had outlined in its manifesto.
Employment Rights Bill 2024: Key provisions
The first work-related Bill to be announced in the King’s Speech is an Employment Rights Bill. While full details of the Bill are yet to be revealed, it is likely to cover several of the workers’ rights pledges contained in Labour’s pre-election manifesto, which aim to “ban exploitative practices and enhance employment rights”. These include:
- A ban on exploitative zero-hour contracts, ensuring employees have the right to a contract that reflects the hours they regularly work, based on a 12-week reference period;
- Introducing a right for workers to receive reasonable notice of work schedules and compensation for shifts cancelled at short notice; and
- Making flexible working the default from the start of employment unless the employer has a valid reason to refuse.
- Making parental leave a day one right for all workers;
- Introducing a new entitlement to bereavement leave for all workers; and
- Strengthening protections for new mothers by making it unlawful to dismiss a woman within six months of her return to work after having a baby.
- Making amendments to the Trade Union Act 2016 and abolishing certain rules on industrial action;
- Requiring employers to inform new starters of their right to join a Trade Union; and
- Reinstating the School Support Staff Negotiating Body to establish national terms and conditions, career progression routes and fair pay rates.
- Reforming Statutory Sick Pay by eliminating the lower earnings threshold and three waiting days, ensuring it is accessible from the first day of sickness;
- Scrapping National Minimum Wage (NMW) age bands, granting all adults the same minimum wage entitlement;
- Revising the criteria for determining the NMW to ensure the cost of living is factored in when setting the minimum pay rate; and
- Create a ‘Fair Pay Agreement’ to allow for sectoral collective bargaining in the adult social care sector.
- Making unfair dismissal a day one right for all workers by removing the current two-year qualifying service period; and
- Placing restrictions on the practice of dismissal and re-engagement, otherwise known as ‘fire and rehire’.
Equality (Race and Disability) Bill 2024: Key provisions
Alongside the Employment Rights Bill, the King’s Speech also announced a new Equality (Race and Disability) Bill. This will introduce legislation that will:
- Place a new duty on large employers to produce ethnicity and disability pay gap reports; and
- Enshrine in law the full right to equal pay for ethnic minorities and people with disabilities by making it easier to bring unequal pay claims.
Implementation timeline
While the new government has committed to introducing legislation within its first 100 days, the changes outlined above are unlikely to come into force immediately, as there are various procedural steps to go through first.
Once legislation is passed, there are additional stages that involve passing further legislation, conducting public consultations, introducing Regulations, and, in certain areas, developing government guidance and/or Codes of Practice. This will take some time.
For now, we recommend that organisations audit and review their current policies and practices in readiness for updating your staff handbook, individual standard operating procedures, and contracts, as and when these changes come into effect. Once there is clarity around these proposals, you may want to invest in training HR, managers and leadership to ensure you are well-equipped to implement these changes effectively and positively across your organisation.
