In the latest article of our pre-election employment law series, Partner Kate Wyatt considers ‘two-sided flexibility’, part of a suite of proposed changes that could affect every UK employer over the coming months.
If the Labour Party wins the general election, as polls predict, it’s committed to introduce the ‘biggest upgrade to rights at work for a generation’. According to its New Deal for Working People, it would introduce new legislation on workers’ rights and employers’ obligations within 100 days of entering government. That would mean October this year.
Ending ‘one-sided flexibility’
A major aspect of Labour’s plans is to counter ‘one-sided flexibility’. In order to ‘ensure all jobs provide a baseline level of security and predictability’ for workers, it proposes to:
- Ban exploitative zero hours contracts and ensure everyone has the right to a contract that reflects the number of hours they regularly work, based on a 12-week reference period.
- Require employers to give all workers reasonable notice of any change in shifts or working time, with compensation proportionate to the notice given for any shifts cancelled or curtailed.
- Put an end to ‘fire and rehire’ and ‘fire and replace’ practices.
The New Deal also makes clear that anti-avoidance measures will be introduced, if necessary, to prevent employers flouting its proposed policies.
Re-examine your contracts
For many employers, this may not be relevant to the way you operate anyway – for example, you’re not in a sector where zero-hour contracts are a thing, or you’ve already moved away from them in the interests of better staff recruitment or retention results.
But in sectors such as social care and hospitality, the proposals around zero-hour contracts and notice and compensation for shift changes, could necessitate a major overhaul.
While it’s unclear when any bans or notice requirements would come into effect, if you do have staff on zero-hours contracts you should carefully consider your current position. You may need to move staff members over to different contracts, change how you organise shifts and rotas, and prepare a plan of action for how you communicate to staff about all of this - and about Labour’s other employments rights changes too.
Don’t panic!
That task may seem alarming when you already have plenty of concerns on your plate, but there’s no cause for panic.
- First, the Labour Party says it is ‘pro-business’ as well as ‘pro-worker’. Its proposals around ending ‘one-sided flexibility’ and job insecurity also include a number of qualifications, such as not preventing employers offering fixed-term contracts, including seasonal work, and recognising that while it wants to end ‘fire and rehire’ practices, businesses may still need to restructure to remain viable.
- Second, none of this is definite. The proposals are top-line and if Labour wins the election, it will consult with businesses, trade unions and civil society on the finer details of any legislation.
- Third, a further focus of the proposals is more consistent enforcement through a single enforcement body which will tackle undercutting and ensure a level playing field for all businesses.
So yes, you may need to look at your hiring practices, staff contracts, shift arrangements, and other employment law and people management practices, but you don’t have to work it out by yourself.
Over the coming months, Lindsays will provide solutions for employment law changes, risks and dilemmas introduced by a Labour or other government, via our fixed-fee prism service.
Rather than ignoring any changes and then being forced to play catch-up or face penalties and reputational damage, you can use prism solutions to manage and reduce risk and stay well ahead of the curve.
This could also improve the performance of your business - helping you retain staff, build loyalty and good relationships, and reduce the expense associated with staff attrition and recruitment.
Kate Wyatt
Partner in Employment Law
Keep checking the Lindsays website for more articles on the proposed changes to employment law in the run-up to the election. We’ll also be announcing a series of webinars and other events to support your business.
Published 27 June 2024
