How is employment law changing in 2024?
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With the recent arrival of the new government, the landscape for both employers and employees across the country is set to change. The Labour Party’s ‘Make Work Pay’ initiative proposed substantial reforms to UK employment law, focusing on enhancing the quality of life for workers. Key elements of the plan included advocating for a true living wage, improving job security, strengthening trade union rights, banning zero-hour contracts, and ending the practice of fire and rehire.
Several of these manifesto promises were reflected in the recent King’s Speech, which targeted the improvement of employment conditions by ending exploitative practices and strengthening workers’ rights.
We take a closer look at what these changes could mean for workplaces nationwide and how they might impact the future of employment in the UK…
Employment Law 2024 changes: How the government is strengthening employment protections
The new government is proposing a series of measures aimed at strengthening employee rights.
These include, but are not limited to:
1) Unfair dismissal as a day-one right
Employees will now be protected from unfair dismissal from their first day on the job, ensuring greater job security from the outset. Currently, the right to make a claim for unfair dismissal is only available to employees who have two years of continuous service at an organisation. Consequently, this change may result in a more fluid job market, with employees potentially moving jobs more frequently, thereby raising average wages.
While this news is welcomed by many, the promise to protect workers from unfair dismissal is likely to worry employers. However, it is worth noting that this will not affect probationary periods or performance reviews. Employers will still be able to operate probationary periods to assess new hires, under the conditions that newly hired workers should not be fired without valid reason or cause. This may prompt employers to take a more vigilant approach when recruiting and during probationary periods, to ensure that the employer is the right fit for their business.
2) Immediate parental and bereavement leave
Secondly, new parents and those experiencing bereavement will be entitled to leave immediately upon employment, recognising the importance of family and emotional well-being.
3) Expanded statutory sick pay
The government plans to extend statutory sick pay to cover the first three days of illness, providing greater financial security to workers. Additionally, statutory sick pay will also be made available to workers earning less than £123 a week, providing broader financial support.
4) Protection for new mothers
Women returning from maternity leave will be protected from dismissal for a period of six months, safeguarding them during the critical period of re-entering the workforce.
5) Ban on “fire and rehire” practices
The controversial practice of firing employees only to rehire them under less favourable conditions will be prohibited, preventing exploitation and promoting fair treatment in the workplace. However, even with its commitment to address this issue, the government acknowledges that eliminating the practice entirely is unrealistic, as it is sometimes the only viable option for struggling businesses. Legitimate redundancies will still be allowed.
6) Flexible working as a default right
Flexible working arrangements will become a default right, meaning employees can request work arrangements that better suit their personal and family needs from their first day on the job.
7) Ban on exploitative zero-hours contracts
The government aims to eliminate exploitative zero-hours contracts, which often leave workers without guaranteed hours or income, thereby promoting job stability and fairer working conditions. However, we should clarify that this proposal will not ban all zero-hours contracts. It is unclear yet whether there will be further criteria regarding the definition of ‘exploitative contracts’.
It is expected that industries such as hospitality, food delivery, and ‘on-call’ care work will struggle to adapt to these changes. Employers should carefully assess how a potential reduction in zero-hours contracts could impact the daily operations of their business.
Looking ahead: What these employment law changes mean for employers
At DRN Solicitors, we recognise the significant impact these upcoming changes could have on employers in the coming months.
For confidential advice and support through these shifts in employment law, please contact our team on 01282 433 241 or get in touch with us here.
