What Businesses Need to Know Under the New Labour Government

Navigating Employment Law Changes

This morning, we attended an insightful employment law update that shed light on the policy changes businesses can expect under the new Labour Government. With significant updates on the horizon, it’s crucial for businesses to stay informed and prepared. Here’s a rundown of the proposed changes and what they may mean for employers.

Key Policy Changes


  1. Whistleblowing Expectations for whistleblowing policies are set to change, potentially providing greater protection and support for employees who report malpractices.
  2. Statutory Bereavement The government is looking to update statutory bereavement policies, which could affect the leave entitlements for employees dealing with loss.
  3. Disciplinary and Capability Revisions in disciplinary and capability policies are anticipated, necessitating updates to current procedures to ensure compliance.
  4. Right to Disconnect A new “right to disconnect” policy may be introduced, allowing employees to switch off from work communications outside of working hours.
  5. Parental Leave Parental leave policies are expected to undergo changes, possibly extending leave durations, and enhancing benefits.
  6. Carers Leave A dedicated carers leave policy could be established, offering specific leave entitlements for employees caring for dependents.
  7. Flexible Working The government plans to make flexible working more accessible, with potential implications for how businesses manage work schedules and employee requests.
  8. Harassment Enhanced measures to prevent workplace harassment are on the agenda, likely requiring stricter policies and training programs.
  9. Sickness Updates to sickness policies, including Statutory Sick Pay (SSP), could see increased rates and broader eligibility, including coverage from the first day of sickness.
  10. Redundancy Redundancy policies may be revised to offer greater protection for employees, impacting how businesses approach layoffs and severance.
  11. Tips Changes in the management of tips are expected, particularly affecting the hospitality industry and how gratuities are distributed.

Changes to Employment Contracts

Contracts of employment are also under review, with significant implications for various types of workers:

  • Self-Employed and Freelancers: These workers may gain the right to a formal contract, providing greater security and clarity.
  • Zero-Hour Contracts: Likely to face stricter regulations, businesses must rethink their approach to casual employment practices.

Scrapping the Two-Year Rule

One of the most notable proposals is the potential elimination of the two-year rule for unfair dismissal claims. This would make probation periods a critical focus for businesses, as the risk of unfair dismissal claims could start from day one of employment.

National Minimum Wage Review

The Chancellor announced a review of the National Minimum Wage, responding to concerns from small businesses about substantial recent increases. This review could lead to further adjustments, impacting payroll and budgeting for many employers.

Enhanced Employee Rights

The government aims to bolster employee protections, including:

  • Day One Right to Unfair Dismissal Claims: Employees could gain the right to claim unfair dismissal from the first day of employment.
  • Increased Pregnant Workers Protections: Protections for pregnant workers may extend up to six months after returning from leave.
  • TUPE, Fire and Rehire, and Unions: Potential changes to Transfer of Undertakings (Protection of Employment) regulations, fire and rehire practices, and union-related policies.

Preparing for Change

While no implementation dates have been set, these proposed changes signal a shift that businesses need to be ready for. Ensuring your processes are up-to-date and managing your workforce effectively will be essential to protect your business.

Stay Informed and Prepared

We will keep you updated on our social media channels with any changes as they happen. If you’re feeling unprepared or need assistance, we’re here to help. Contact Natalie or Faye at 01327 640070 or email hello@reboxhr.co.uk for support.

As employment law continues to evolve, staying informed and being proactive with your HR processes are essential for protecting your business and supporting your employees

Looking for expert HR Advice ?

We have plenty of options for businesses in both retainer and ad-hoc options

Contact Rebox HR on 01327 640070 or email Hello@reboxhr.co.uk

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