What does a Labour Government mean for employment law and people practices?
Nicole James • July 9, 2024
Key new legislation being introduced by labour in 100 days
With a new party in power there will be lots of change in all areas of public policy and employment law is an area in which the Labour party made clear their intentions in their manifesto. Employment law is big impact with relatively low cost so it’s an area where there can be many quick wins. A lot of the changes demonstrate they are for the people. I think this can also bring positives to business in that it should improve culture, which will lead to greater productivity and profitability.
Labour have committed to introducing legislation in the first 100 days so it is likely that we will see movement relatively quickly; in practice this means that the changes will be introduced to parliament on 25 October. At this stage there aren’t timescales as to when things will be implemented – some will be quickly and some will take longer. There will be detailed consultation on some areas. As things work through we can start to proactively plan what this means for your business.
Below is an overview of all the key changes that we can expect to see. My top recommendation would be to look at the list and decide which areas are likely to have the greatest impact on your business and start thinking about whether you’ll need to consider changes in practice and training.
Key areas to consider:
- Ensuring processes like probation, performance and disciplinary are embedded in the organisation. With rights to unfair dismissal from day one it is key that your managers follow proper process. It will be essential that you have fair and reasonable processes
- Your managers should be trained so you can proactively.
- Review the different types of contact you have in place and start workforce planning in preparation of the changes that will come through
Key Actions to complete:
1. Create new contracts & update existing contracts
2. Create new policies and update existing policies
3. Understand the new / amended procedures
4. Train your managers
Contractual Considerations
- Day-one rights: Remove qualifying periods for basic rights like unfair dismissal, sick pay, and parental leave so they become day-one rights.
- Single status of “worker”: Remove current distinction between employees and workers so that all workers are afforded same basic rights and protections, eg sick pay, holiday pay, parental leave, protection against unfair dismissal, etc.
- Self-employment: Be given a right to a written contract.
- Zero-hours contracts: Ban “one-sided” flexibility; anyone working regular hours for 12 weeks or more will gain right to a regular contract to reflect hours worked; and all workers to get reasonable notice of any change in shifts or working time, and recompense for cancelled shifts.
Pay
- Raise wages for workers: Remove age bandings used in current system; reform role of the Low Pay Commission, including requiring it to take the cost of living into consideration when recommending rates; ensure travel time in sectors with multiple working sites is paid; act on “sleep over” hours in sectors like social care; create Fair Pay Agreements in adult social care; and ban unpaid internships except as part of education/training course.
- Sick pay: Strengthen Statutory Sick Pay (SSP), make it available for all workers and remove the waiting period. Rate to represent fair earnings replacement.
Employee Rights
- Family-friendly: Make parental leave a day-one right; introduce right to bereavement leave; make it unlawful to dismiss pregnant employees for six months after return from maternity leave except in specific circumstances.
- Tips: Strengthen the law to ensure hospitality workers receive their tips in full and workers decide how tips are allocated.
- Close pay gaps: Publication of ethnicity and disability pay gaps to be mandatory for firms with more than 250 staff.
- Strengthen rights: Strengthen existing rights and protections, including for pregnant workers, whistleblowers, workers made redundant, workers subject to TUPE processes and those making grievances; reinstate School Support Staff Negotiating Body; and encourage employers to sign up to “Dying to Work” charter to support workers with a terminal illness.
- Tackle harassment: Require employers to create and maintain workplaces and working conditions free from harassment, including by third parties.
- Caring responsibilities: Review implementation of carer’s leave and examine benefits of introducing paid carer’s leave.
- Wellbeing: Support wellbeing of workers and their long-term physical and mental health; and assess whether existing regulations and guidance are adequate to support and protect those experiencing the symptoms of Long Covid.
- Menopause: Require large employers with more than 250 employees to produce Menopause Action Plans.
- Enforcement rights: Extend time limit for bringing employment tribunal claims to six months; simplify enforcement of equal pay; and establish a single enforcement body to enforce worker rights.
Flexibility
- Flexible working: Make flexible working the default from day one for all workers except where it is not reasonably feasible.
- Right to switch off: Introduce a new right to disconnect and protect workers from remote surveillance.
Dismissal Practices
- Fire and re-hire: Improve information and consultation procedures by replacing statutory Code of Practice introduced by current Government with a stronger one; and adapt unfair dismissal and redundancy legislation to prevent workers being dismissed for not agreeing to a worse contract.
General
- Artificial intelligence (AI): Work with workers, trade unions, employers and experts to examine what AI and new technologies mean for work, jobs and skills.
- Update trade union laws: Strengthen trade union right of entry to workplaces; simplify process of union recognition; strengthen protections for trade union reps; and new duty on employers to inform workforce of right to join a union in their written contract.
The next few months will be very busy. If you need help or support then get in touch. Bamboo People can help you understand what you need to do and carry some of the workload.
The Five Reasons Your Best People Are Walking Out (And What To Do About It)
From avoidance to action: Why most 'difficult' conversations aren't actually difficult
How to protect your business from illegal working fines
Top tips to prepare for changes to sickness absence in April 2026
Big changes are coming for UK businesses with the introduction of the Employment Rights Bill. And the ones that prepare properly will have a significant advantage. Employment tribunal claims rose 23% last year. There are 45,000 open cases right now - a 32% increase on last year. The system is buckling under pressure. The heat is on employers to get people practices right and if they don't the commercial implications in terms of time and cost are significant. The Bill adds additional stress to businesses that are already finding it hard. But here's the good news: the government has given you more time to prepare. The biggest change - day-one unfair dismissal rights - won't kick in until 2027. The businesses that use this time to build proper people management systems will thrive. Those that don't will be at serious risk of costly claims and poor staff commitment. You have time to get this right. But only if you start acting now. The Numbers That Should Worry You 📈 Tribunal claims are exploding: Unfair dismissal: 22% of all claims Discrimination claims: 30% of total cases (up 15% in one quarter) Disability discrimination: up 28% in Q1 2025 alone Average unfair dismissal award: £13,749 💰 Immediate costs hitting now: National Insurance up from 13.8% to 15% Statutory sick pay rises to £118.75 per week New neonatal care leave: 12 weeks paid Fire and rehire failures: 25% compensation uplift (up to 112.5 days' pay) These aren't just statistics. They're real costs hitting real businesses right now. What Changes When (And Why It Matters) The government is taking a phased approach, with three key implementation dates: 📅 April 2026: Statutory Sick Pay reforms Protective awards double (90 to 180 days for collective redundancy breaches) Fair Work Agency established Day-one paternity and parental leave rights Trade union balloting changes 📅 October 2026: Fire and rehire restrictions Enhanced sexual harassment prevention duties Third-party harassment liability Extended tribunal claim time limits Stronger union rights and tips laws 🚨 2027 - The Big One: Day-one unfair dismissal rights Currently, employees need two years' service to claim unfair dismissal. From 2027, they can claim from day one. With unfair dismissal already representing 22% of all tribunal claims, expect this to explode. The smart businesses are using this extended timeline to build proper people management systems, not just fixing immediate problems. The People Problems You Need to Fix (But Now You Have Time to Do It Right) 🎯 Underperformers That team member who's been coasting for months? You don't need to panic, but you do need a plan. Use this time to implement proper performance management systems, not just quick fixes. ⏰ Attendance issues Persistent lateness or absence patterns? Build robust absence management procedures. You have time to do this properly, not reactively. 😤 Attitude problems Behavioural issues affecting the team? Address them systematically. Create clear behavioural expectations and consequences. 📝 Poor documentation If you can't prove your decisions were fair, you'll lose at tribunal. Use this extended timeline to build proper record-keeping systems. This isn't about rushing to fire people. It's about building systems that prevent problems and manage them fairly when they arise. Three Things You Should Start This Year 🔍 Build proper foundations Don't just patch problems - build systems. Review employment contracts, create comprehensive policies, and establish robust record-keeping. You have time to do this properly. 💪 Invest in manager development Train your managers in employment law basics, difficult conversations, and fair treatment principles. They're your first line of defence, and you now have time to develop their skills properly. 🎯 Create prevention systems Rather than just fixing current issues, build systems that prevent problems. Regular employee feedback, clear communication processes, and proactive performance management. The Business Case (It's Not Just About Compliance) Getting people management right isn't just about avoiding tribunals. Committed employees deliver: 21% higher profitability 10% increase in customer satisfaction 20% increase in sales Poor people practices cost you: Management time lost to tribunal proceedings (average 4.8 weeks per claim) Reputational damage High turnover costs Reduced productivity from everyone else The Reality Check The employment law landscape is changing, but you have more time than originally thought to prepare properly. Day-one unfair dismissal rights don't come in until 2027. But don't waste this opportunity. The businesses that use this time wisely will have a significant competitive advantage. This isn't just about compliance. It's about building businesses that can attract, retain and motivate great people. The businesses that will succeed are those that see these changes as an opportunity to professionalise their people practices. You have time to get this right. But only if you start building proper systems now, not waiting until 2026 to panic. The question isn't whether you can afford to invest in better people management. It's whether you can afford not to. While others wait until the last minute, smart businesses are already building the people practices that will give them competitive advantage in the new employment landscape. Don't waste the extra time you've been given. Need help building robust people management systems? The businesses that start now will be way ahead of those that wait until the last minute. Need help preparing for the changes ahead? The businesses that act now will have a significant advantage over those that wait until 2026.
Why Getting It Right Has Never Been More Critical
