Labour’s Workers’ Rights Package: An Overview
Labour’s ambitious workers’ rights initiative, led by deputy leader Angela Rayner, was initially touted as a groundbreaking overhaul of employment law in the UK. Dubbed the “New Deal for Working People”, this package aimed to eliminate exploitative work practices, bolster protections for workers, and introduce essential rights, including the much-discussed “right to disconnect” from work-related communications outside of contracted hours. The manifesto boldly claimed these reforms would “enhance the lives of working people across the UK” and foster a cooperative relationship between businesses and trade unions.
However, over the past year, Labour has faced growing criticism as key elements of this ambitious agenda have been quietly diluted or removed. Trade unions, which were among the strongest advocates for the original proposals, have voiced their disappointment and concern. Unite’s general secretary, Sharon Graham, remarked in May 2024 that the revised proposals now feature “more holes than Swiss cheese”.
While Labour has firmly denied any significant weakening of its pledges, the ongoing modifications have left many wondering about the integrity of the original workers’ rights agenda as the legislative process unfolds.
Ways Labour’s Workers’ Rights Pledges Have Evolved
Dropping the ‘Right to Disconnect’
Initially, the “New Deal for Working People” included a promise to establish a “right to switch off”, intended to prevent home environments from morphing into around-the-clock workspaces. The proposal aimed to emulate successful models from countries like Ireland and Belgium, promoting constructive dialogue between workers and employers to create tailored workplace policies that benefit both parties. This commitment was designed to tackle the prevalent issue of an “always-on” work culture, acknowledging that a climate of presenteeism is detrimental to both morale and productivity.
However, this specific pledge was conspicuously absent from the Employment Bill currently navigating through Parliament. Although ministers indicated that it would be addressed in subsequent announcements, reports from the Sunday Times suggest that the policy is set to be officially dropped in upcoming amendments to the bill. A government source disclosed that the “right to switch off is dead”, with the intention of enhancing business confidence following recent tax increases that imposed additional costs on employers. The source emphasized that the government prioritizes “growth that puts money in people’s pockets”, asserting that making the UK an attractive destination for business is essential, necessitating the removal of perceived barriers.
Extending Probationary Periods
Labour initially committed to reforming probationary periods, proposing that workers should be entitled to employment protections, including safeguards against unfair dismissal, from their very first day on the job. However, in the briefing notes accompanying the King’s Speech in 2024, the government stated its intention to “continue to ensure employers can operate probationary periods to assess new hires.” Discussions around the maximum duration of these periods led unions to advocate for a six-month limit. Yet, reports from October 2024 indicated that the government favored extending the probationary period to nine months, following consultations influenced by business representatives.
A Labour official conveyed to the Financial Times that this extended timeframe allows firms to dismiss new hires more swiftly than those employed for more than nine months while still adhering to the commitment of day-one rights. This decision has raised alarms among advocates for employment rights, who argue that longer probationary periods may leave workers vulnerable to dismissal without cause for an extended duration.
Changes to Zero-Hours Contract Ban
Labour’s initial stance was to outright ban exploitative zero-hours contracts, a key element of its commitment to ensuring stable and predictable working hours. However, by mid-2023, the party began to soften its position, suggesting that it would only target the “most exploitative” contracts. This shift became evident during speeches at the TUC conference in September 2023, where Leader Keir Starmer indicated that Labour would strive for “greater security” without completely prohibiting these types of contracts.
The finalized document outlining Labour’s plans, published in May 2024, stated that the party would “end ‘one-sided’ flexibility” and ensure that all jobs provide a minimum level of security and predictability. The new approach promised to ban exploitative zero-hours contracts while guaranteeing employees a contract reflective of their regular hours based on a twelve-week reference period.
Changes to ‘Fire and Rehire’ Restrictions
Initially, Labour pledged to ban the contentious “fire and rehire” practice, which allows employers to dismiss employees only to rehire them under less favorable conditions. However, by late 2023, the party backtracked on this commitment, opting instead to introduce regulations to limit the practice rather than enforce an outright prohibition. This change was formally announced in November 2023 following lobbying efforts from business leaders.
Labour’s 2024 document clarified that these regulatory changes were intended to support businesses while still protecting workers. It emphasized the importance of allowing companies to restructure to remain viable, thereby preserving jobs when no alternative exists. However, this approach has drawn criticism from trade unions, which argue that it could coerce workers into less favorable contracts under the threat of job loss. Unite general secretary Sharon Graham stated in October 2024 that the bill “still ties itself up in knots trying to avoid what was promised.”
What is Included in the Employment Rights Bill?
The Employment Rights Bill is a proposed legislative framework designed to strengthen workers’ rights across the UK by enhancing job security, improving pay conditions, and reinforcing trade union protections. It aims to codify the commitments made in Labour’s ‘New Deal for Working People’, announced prior to the general election. Below are key measures included in the legislation, which is currently progressing through Parliament and may undergo further amendments before becoming law:
- Right to flexible working: Employers must provide justification for rejecting requests for flexible work, with such claims being referenced in tribunals.
- Ending fire and rehire: Dismissing employees to rehire them on less favorable terms will be deemed automatically unfair.
- Banning ‘exploitative’ zero-hour contracts: Employers will be mandated to offer guaranteed hours aligned with employees’ regular working patterns.
- Compensation for cancelled shifts: Workers will be entitled to compensation for shifts that are cancelled or altered with short notice.
- Day one protection from unfair dismissal: Employees will gain safeguards against unfair dismissal from their first day of employment.
- Unfair dismissal protection for pregnant workers: Legal protections will be enhanced to prevent the dismissal of pregnant employees and new mothers.
- Day one right to parental and paternity leave: Paternity leave will become a right from day one and can be taken after shared parental leave.
- Right to unpaid bereavement leave: Bereavement leave provisions will be expanded to cover more family members and allow multiple leave periods.
- Removing the lower earnings limit for sick pay: All employees will qualify for statutory sick pay, irrespective of their income level.
- Abolishing the waiting period for sick pay: Sick pay will be available from the first day of illness instead of after a four-day waiting period.
- Tightening tipping laws: Employers will be required to consult with workers before making any changes to tipping policies.
- Establishing the Fair Work Agency: A new agency will be created to enforce employment rights, including adherence to minimum wage and holiday pay regulations.
- Improved pay for social care workers: A Fair Pay Agreement framework will be introduced to enhance pay negotiations in the social care sector.
- Improved pay for school support staff: The School Support Staff Negotiating Body will be re-established to oversee pay and working conditions.
- Improved protections for maritime workers: UK employment laws will be applicable to ships that frequently operate in British waters.
- Repealing strike restriction laws: The requirement for minimum service levels during strikes will be eliminated.
- Removing legal restrictions on trade unions: The threshold for industrial action votes will be lowered, and opt-in rules for political funds will be abolished.
- Giving unions workplace access rights: Trade unions will receive clearer rights to access workplaces for member meetings.
- Simplifying trade union recognition: Unions will no longer need to demonstrate majority workplace support before being recognized.
- Strengthening provisions for union representatives: Union reps will have the right to appropriate workplace facilities and time off to perform their duties.
- Informing workers of the right to join a union: Employers will be mandated to inform new and existing employees of their right to join a trade union.
- Extra protections against union blacklisting: It will become illegal to sell or supply details of trade union members for discriminatory purposes.
- Strengthening collective redundancy rights: The 20-worker redundancy consultation rule will apply across multiple business sites.
- Strengthening protections against sexual harassment: Employers will be legally required to take reasonable steps to prevent workplace sexual harassment.
- New sexual harassment whistleblower protections: Sexual harassment will be added to the list of disclosures protected under whistleblowing laws.
- Requiring workplace equality action plans: Large employers will be mandated to publish plans addressing gender pay disparities.
- Improving gender pay gap reporting: Companies will be required to provide gender pay data concerning outsourced service providers.
- Re-establishing the ‘two-tier code’: Public sector contractors will be required to ensure that new employees are not paid less than transferred staff.
