UK business owner’s guide to the new Labour government

A new Labour government has been elected, and one thing we know for sure at this stage is that this will bring huge changes to workers’ rights in the UK.

The scale and speed of change will be enormous, having a significant impact on all UK employers. Labour considers these reforms a top legislative priority and has committed to introducing an Employment Bill within their first 100 days in government.

What does a Labour government mean for small businesses in the UK?

Prior to their success at the polls, the party published its Plan to Make Work Pay – A New Deal for Working People on 24 May, setting out its ambitious agenda for change. The Plan documents over 30 key Employment Law reforms and in their election manifesto, Labour committed to implementing the plan in its entirety, describing our current Employment Laws as not fit for the modern economy.

What did Labour propose in its Plan to Make Work Pay? 

From scrapping a minimum service requirement for certain employment rights to making Statutory Sick Pay payable from day one and beyond, Labour’s proposed Employment Law changes are set to be the most significant overhaul of UK Employment Law in a generation.

While there’s over 30 changes outlined in the full plan, there are some highlights that UK business owners need to start planning for now, including:

  • Removing the service requirement to make the right to claim unfair dismissal a day one right.
  • Introducing a new Single Enforcement Body, the Fair Work Agency, with “real teeth” to deliver “swifter access to justice” for workers in areas such as holiday pay and sick pay.
  • Banning “exploitative zero-hours” contracts and ending “one sided flexibility”, ensuring that all jobs provide a baseline level of security and predictability.

Need a quick overview of the most important changes set to come your way? Just click play on our handy explainer video below!

Want to learn more? Read our Director of Employment Law’s Top 11 Takeaways from Labour’s ‘Plan to Make Work Pay’, where she unpacks the changes that are most likely to impact UK businesses over the coming months.

What changes will happen first?

We don’t have the full timeline at this stage, but we do know that in their manifesto, Labour committed to implementing their agenda for change in its entirety and plan to introduce an Employment Bill within their first 100 days in government.

They’ve promised a full consultation process about the changes.

Need help understanding how Labour’s Employment Law plans will affect your business?

Make sure to bookmark this page, as we’ll be updating it with more information over the coming weeks and months as we start to understand the extent of Labour’s plans and proposed timelines.

Our Director of Employment Law, Gillian McAteer, summarised the most important changes on the horizon in an exclusive Q&A. Head to our on-demand events page to catch the recording and hear her exclusive initial analysis.

If you’d like to hear more, why not join our exclusive webinar General election results: What’s in store for Employment Law on Thursday 18 July at 2 – 3pm where we’ll be unpacking the aftermath of the election and helping you prepare for the changes ahead.

Ready to get ready for change?

How Citation can help

With over 300 HR experts, Employment Law solicitors and Health & Safety consultants backing your business, you can have confidence that you’re doing everything by the book with Citation’s 24/7 support and unrivalled advice guarantee.

We can be the partner that can help you get ready for anything and keep your business in safe hands. Find out how we can support your business by calling 0345 844 1111 today.

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