New Government, new Employment laws?
The general election later this week is promising to be a catalyst of change.
Employment Law in the UK is a dynamic field reflecting the ever-evolving relationship between employers and employees. Much of this evolution is driven by societal changes, economic conditions, and technological advancements to name a few.
The general election later this week is widely predicted to return a Labour Government so we looked at the Labour manifesto and what it means for the UK’s employment landscape and EPLI policies.
The Labour Party’s 2024 Manifesto released in June underscores this fluidity as it announced proposals for significant changes to employment law ahead of next month’s general election. In their ‘Plan to Make Work Pay’, Labour outlined a series of reforms aimed at boosting wages and productivity, whilst also making work more secure. Labour have pledged to introduce legislation within 100 days of entering government.
All of the proposed reforms have the potential to generate risks for employers at some level. As an insurer of employment liability risks, we have highlighted some key proposed changes to employment law which we think are interesting and potentially disruptive.
The first is that Labour plan to introduce ‘basic individual rights’ for all workers from day one. Under current legislation, certain employment related rights can only be accessed after an employee has worked for a qualifying time period: ordinary unfair dismissal requires two years of employment; parental leave requires one year of employment; eligibility for statutory sick pay (SSP) only kicks in on the fourth day of sickness absence. Labour’s proposals aim to end this ‘arbitrary system’ by providing employees with these rights from day one of employment. Initially, this would lead to many employers having to implement considerable changes to their HR policies and procedures, for example in respect of recruitment or how probationary periods are managed.
The second is that Labour plan to introduce measures which aim to protect women in the workforce. They will make it ‘unlawful to dismiss a woman who is pregnant for six months after her return’ to work, except in specific circumstances. Furthermore, Labour will require employers with more than 250 employees to produce ‘Menopause Action Plans’, which set out how they will support employees through menopause and will publish guidance on measures on recording menopause-related leave and absence.
To ensure that there is compliance with these changes, Labour plan to establish a ‘Single Enforcement Body’, to enforce workers’ rights, including strong powers to inspect workplaces. This body would have the power to undertake targeted and proactive enforcement work and bring civil proceedings upholding employment rights. It is likely, however, that this body would not be functional for at least one year.
We all know, this is currently a manifesto. We do not know for sure how many of these policies will be implemented following the General Election. If, however, we have a large majority Labour government in place from July, we expect to see these significant changes to employment law coming into force through the end of 2024 and into 2025.
Employment disputes often arise following a breakdown in the relationship between the employer and employee. One of the best protections for an employer, and a way to mitigate against disputes developing into claims, is to follow fair and proper processes, which are documented, and which comply with the law.
With such extensive reforms on the horizon, employers should start considering now, how these proposed new laws will impact their business, such that they are ready to implement changes swiftly and efficiently.
If you want to discuss what these changes may mean for your EPLI policies or you’d like to understand the benefits of getting one, get in touch with your trusted broker or contact us at team@risingedge.co
For more discussion on Employment Disputes and Risk Mitigation, check out these episodes fourteen and fifteen of the Rising Edge Podcast, where our Head of Claims and General Counsel, Owen Dacey, sat down with Louise Bloomfield, Partner and Head of Claims at DAC Beachcroft LLP; Anjali Sharma, Legal Director at DAC Beachcroft LLP; and Isabel Alvarez, Director, Head of HR & Comms at Rising Edge, to common triggers for disputes and the procedures which businesses need to have in place to ensure they are mitigated and handled appropriately.