What’s in store for 2024: Labour Legislation and Employment Law Changes

Following last month's general election, Labour has proposed several changes in employment law. The potential legislation changes are set to be discussed within the next 100 days, setting the stage for the upcoming employment law agenda.

With the new changes directly affecting recruitment, employees, trade unions, and beyond if passed, what employment law changes can we anticipate? We’ve addressed your queries below, covering everything from employment contracts to new employee rights. 

Q: How will employment status change?

A: Employment status could be streamlined from three categories to two

Employment status refers to an individual’s legal status to work in the UK, encompassing both their employment rights and the responsibilities of their employers. Currently, there are three categories of employment status: 

1.  Employee: Individuals who work under a contract of employment 
2.  Worker: A broader category involving those who work under a contract for services 
3.  Self-employed: An individual who works for themselves and is not under a contract of employment. 

As it stands, those who fall under the employee category are entitled to more employment rights than a worker or someone self-employed. The complexity of categorising employment types and understanding your employment rights for full protection has since been emphasised. For employers, ensuring legal compliance when hiring and managing new staff presents its own set of challenges. 

To address this, employment law changes are looking to amend work status to either a worker or self-employed. Streamlining employment categories could make it easier to determine employee rights, ensuring legal compliance from the get-go. Not only could this improve clarity, but it is thought to eliminate businesses utilising loopholes to evade legal responsibilities, often leading to lengthy and complex legal disputes.

Q: Will we see changes to employee contracts?

A: Zero-hour contracts may be removed to eliminate ‘exploitative’ practices 

Unlike traditional employment contracts, zero-hour contracts do not guarantee a minimum number of working hours, with workers under no obligation to accept offered hours. Despite their flexibility, these contracts are often viewed as an exploitative framework offering insecure work and unpredictable income.

Last year, over one million individuals were reported to be on a zero-hour employment contract. This may change with employer responsibilities and expectations set to ensure employees receive a guaranteed number of working hours. Employers could also be required need to provide adequate notice for working hours.

Offering secure employment terms will undoubtedly alter countless hiring practices across the UK, prompting recruiters to adjust their recruitment strategies to remain compliant and attractive to candidates. 

Q: Will we see additional rights for employees?

A: New ‘day one’ and ‘family-friendly’ rights may be introduced 

New changes in employment law will be pledged to champion day-one rights for the employee. This means the worker could become entitled to benefits such as annual leave, sick pay entitlements, parental leave, and flexible working from the first day of employment.

In addition, new family-friendly rights have been introduced to promote a better work-life balance for employees. While some businesses already offer these benefits, the new regulations could establish a standard and uniform requirement for all companies. The new rights pledged will have a key focus on: 

Flexible working 

Already recognised as a day-one right, labour legislation would like to make it easier for employees to request flexible working arrangements. This change is driven by the proven success of flexible working in improving work-life balance, boosting job satisfaction, and increasing overall productivity in the workplace.

Maternity discrimination 

Proposed plans are underway to strengthen protections for employees returning from maternity leave. Unless under specific circumstances, the new labour legislation could make it illegal for employers to dismiss an employee within six months of their return, designed to provide greater job security for new mothers.

The right to ‘switch off’

Since the pandemic, remote and hybrid work arrangements have become highly prevalent, establishing a new norm for many employees. While this shift is welcomed, the challenge of being able to ‘switch off’ from work has evolved into a notable concern.

In response, the government is considering regulations similar to those in Belgium and Ireland that aim to promote a healthy work-life balance, specifically by restricting employees from contacting employers outside of work hours.

Q: Will Labour address the impact of AI on the job market?

A: We could see a new focus on how AI can positively impact our workforce

Since the rapid introduction of AI into key industries, there has been widespread concern about AI's potential to take over jobs and impact job security. In the UK alone, 45% of workers fear AI could replace their jobs.

In response, the government is exploring ways to harness AI's benefits while minimising its impact on employment. Risk mitigation strategies have been proposed, with the government committed to finding ways to integrate AI positively without significantly impacting our workforce.

Q: What do the employment law changes mean for recruitment?

A: It’s time to embrace the change!

The potential labour legislation changes will inevitably impact recruitment processes and employment practices. Although seemingly complex, this provides an opportunity for employers to strengthen their hiring practices and exceed meeting the needs of their workforce.

Recruitment must remain vigilant during the implementation of any new legal standards while employers adapt and adjust their strategies, expectations and management practices to align with the legal landscape.

Introducing day-one rights, for example, will make it necessary for recruiters to be clear about the benefits and entitlements that employees will receive from the start of their employment. In turn, highlighting these aspects in job advertisements will attract candidates seeking a better work-life balance, whilst also placing greater emphasis on the employer to meet these demands with immediate effect.

As a recruitment specialist in the scientific sector, Network Scientific have assisted countless pharmaceutical, biotech, medical device, and wider life science businesses with hiring in adherence to the latest legislation.

To ensure your internal recruitment process meets regulatory standards, aligns with employee expectations, and stays competitive in the market, contact the team at Network Scientific.