Less than two weeks after the 2024 General Election, the King’s Speech was read at the State Opening of Parliament today.
The King’s Speech outlined the new Labour government’s plans for the year.
From an employment law perspective, many of Labour’s manifesto commitments made an appearance - with a pledge to roll out legislative change within 100 days.
The main highlights are discussed below.
Key employment law changes to come
Committing to ensure workers are provided with a baseline level of security and predictability, Labour reiterated in the Speech that they will (in no particular order):
- ban exploitative zero-hours contracts;
- grant protection from unfair dismissal and entitlement to sick pay and parental leave from the first day of employment (subject to probationary periods to assess new hires);
- end ‘fire and rehire’ and ‘fire and replace’ practices and replace the current statutory code;
- make Statutory Sick Pay available to all workers from the first day of absence, by removing the lower earnings limit and waiting period;
- make flexible working a default for workers from day one, with employers required to accommodate this as far as reasonable;
- except in specific circumstances, make it unlawful to dismiss a woman in the first six months of her return from maternity/family leave;
- introduce mandatory disability and ethnicity pay gap reporting for large employers (with over 250 people);
- promote increased engagement and improved industrial relations with trade unions; and
- introduce a duty to take all reasonable steps to prevent sexual harassment in the workplace.
The detail of these changes is still to be set out in draft legislation.
Notable omissions
Whilst some of Labour’s high profile manifesto commitments featured in the King’s Speech, others failed to make an appearance. Most notably:
- Labour’s proposal for a single worker status, introducing a two-tier system where an individual is either a worker or genuinely self-employed;
- the pledge to strengthen redundancy rights and remove the ability for an employer to define separate establishments within its business, triggering the duty to collectively consult more easily and frequently; and
- a plan to give workers the right to “switch off” by disconnecting themselves from being contacted by their employer outside working hours.
The omission of these items from the King’s Speech does not necessary mean that Labour will not revisit them in the future.
It may be that they are not an immediate priority given the more complex nature, and that consultations might be likely in the future.
The new landscape
Labour have reiterated in the King’s Speech that they intend to implement “the biggest upgrade to workers’ rights in a generation”.
If successful, these changes will be introduced by Labour within their first 100 days of governing – likely to be October 2024.
Whilst the above proposals are positioned as creating a new partnership between business, trade unions and working people, much uncertainty remains. The fine detail is to follow in Labour’s draft legislation.
For now, it will be a case of watching and waiting for the draft legislation, but employers should certainly prepare for substantial change in the above areas.
If you have any questions about any of these proposed changes and how they will impact you and your business to get in contact with Victoria and the Employment team at Clarion.