On 24 May 2024, Labour published its “Plan to Make Work Pay”, which sets out its proposals for the workplace if it wins the election race this summer. Labour pledges to improve “job security, treat workers fairly and improve low pay”.  The party has also promised to introduce legislation within 100 days of entering government, subject to consultation with businesses, trade unions and civil society.

We have summarised Labour’s key pledges below.

1. Day one right for employees not to be unfairly dismissed.  Labour intends to reform unfair dismissal protection (which is generally only afforded to those employees with 2 years’ service) so that it applies to all employees as a day one right.  This will not prevent fair dismissal, or probationary periods with transparent rules and processes, but it will  make it unlawful for employers from being able to fire employees without a fair reason or a proper procedure.  
2. Banning “exploitative” zero hours contracts to improve job security and predictability and introduce a right to have a contract that reflects the hours regularly worked.  Workers can still be paid overtime and employers will not be prevented from offering fixed-term contracts including for seasonal work.
3. Restricting “fire and rehire” practices by introducing a new and strengthened code of practice.  Fire and rehire would only be permitted as part of a restructure where there is “genuinely no alternative”, but there would still need to be discussion and consultation with employees.
4. Single status of worker. Subject to consultation, Labour intends to remove the current three-tier system for employment status (where people are classified as employees, self-employed or workers).  Labour aim to move towards a single status of worker and transition towards a simpler two-part framework for employment status where people are either workers or self-employed. 
5. Improving rights for the self-employed. Labour would give those self-employed the right to a written contract and intend to strengthen trade union rights to benefit self-employed workers.
6. Flexible working.  Labour will strengthen the right to request flexible working to ensure that it is genuinely a default from day one for all workers, except where this is not reasonably feasible.  The party also intends to bring in the ‘right to switch’ off giving workers and employers the opportunity to have constructive conversations and work together on bespoke policies to implement this right. 
7. Family friendly rights. Parental leave would become a day one right and additional protection from maternity discrimination will be introduced such that dismissal will be unlawful within six months of return to work (except in specific circumstances).  Labour also intend to review the Carer’s Leave regime and clarify the law and entitlement to bereavement leave.
8. Right to fair pay. Labour would look to link the national minimum wage with the cost of living and remove the 18-21 age band.  In addition to increasing national minimum wage, labour would strengthen statutory sick pay by making it available to all workers from day one of sickness (rather than day 4) and removing the lower earnings limit.  Labour also intend to ban unpaid internships (unless they are part of education or a training course) and to ensure that all hospitality workers receive their tips in full.  
9. Equality at work. Labour pledge that they are committed to tackling the gender pay gap and would make ethnicity and disability pay gap reporting compulsory for employers with more than 250 employees.  Labour will also require employers with more than 250 employees to produce Menopause Action Plans, setting out how they will support employees through the menopause. 
10. Improving rights at work. Labour propose to strengthen redundancy rights and protections including the trigger for collective redundancy consultation being determined by the number of people impacted across the business (rather than in one establishment).  It also aims to enable employees to collectively raise grievances about conduct in their place of work to ACAS in line with the existing code for individual grievances. The party also intends to strengthen TUPE, whistleblowing and sexual harassment protections.
11. Increasing employment tribunal claim limitation periods from 3 to 6 months.
12. Improving employment tribunals and enforcement. Labour intend to establish a state Single Enforcement Body for workers’ rights, including powers to inspect workplaces and take action against exploitation.  In addition, the party propose to improve enforcement through the Employment Tribunal. 
13. Improving employee representation and voice.  Labour plan to strengthen the rights of workers to organise collectively through trade unions, simplify trade union recognition and regulation, and improve access for trade unions in the workplace.  They also intend to repeal the Strikes (Minimum Service Levels) Act 2023, Trade Union Act 2016, and the introduction of electronic balloting. 
14. Technology and AI. Labour would require employers to consult worker representatives before introducing surveillance technologies.