By using this site, you agree to the Privacy Policy and Terms & Conditions.
Accept
routeonerouteonerouteone
  • News
    • Show all
    • Awards & Events
    • Deliveries
    • Environment
    • Exhibitor News
    • Euro Bus Expo 2024
    • Features
    • Legal
    • Minibus and minicoach
    • Operators
    • Opinion
    • People
    • Suppliers
    • Vehicles
  • Vehicles
    • Find a Vehicle
    • ZEV Comparison Tool
    • Sell a Vehicle
    • Vehicle Seller Dashboard
  • Insights
  • Careers
  • Events
    • British Tourism & Travel Show
    • Euro Bus Expo
    • Innovation Challenge
    • Livery Competition
    • routeone Awards
  • Advertise
  • Contact
    • Share your news
    • Subscribe
    • Update Subscription Details
  • Latest Issue
  • SIGN UP
Search
© 2024 routeone News. All Rights Reserved.
Reading: Employment law changes under a Labour government
Share
Font ResizerAa
routeonerouteone
Font ResizerAa
Search
  • News
    • Show all
    • Awards & Events
    • Deliveries
    • Environment
    • Exhibitor News
    • Euro Bus Expo 2024
    • Features
    • Legal
    • Minibus and minicoach
    • Operators
    • Opinion
    • People
    • Suppliers
    • Vehicles
  • Vehicles
    • Find a Vehicle
    • ZEV Comparison Tool
    • Sell a Vehicle
    • Vehicle Seller Dashboard
  • Insights
  • Careers
  • Events
    • British Tourism & Travel Show
    • Euro Bus Expo
    • Innovation Challenge
    • Livery Competition
    • routeone Awards
  • Advertise
  • Contact
    • Share your news
    • Subscribe
    • Update Subscription Details
  • Latest Issue
  • SIGN UP
Follow US
© 2024 routeone News | Powered by Diversified Business Communications UK Ltd
- Advertisement -
-
routeone > Opinion > Employment law changes under a Labour government
Opinion

Employment law changes under a Labour government

JMW Solicitors' experts look at what's in store for employers should Labour win the general election

JMW Solicitors
JMW Solicitors
Published: June 25, 2024
Share
Coach operator PC Coaches gained compensation after TUPE breach
SHARE

The general election has been called to take place on Thursday 4 July and the polls have predicted a Labour Party win.

Contents
Zero-hours contracts and one-sided flexibilityBasic day-one rights and time limitsSingle status of workerWhat next?

Labour has boasted to have historically introduced the national minimum wage, the 48-hour working week, 28 days’ paid holiday, parental leave, and greater protection from unfair dismissal.

On 24 May, Labour published its Plan to Make Work Pay: Delivering a new deal for working people (“the New Deal”) which promises to make work more secure and support working people further.

Labour has stated it intends to start the legislative process within 100 days of entering government, subject to consultation and other priorities. This means it will introduce a draft Bill to be debated by the two houses. It doesn’t mean an actual employment Act will pass within 100 days.

This piece will focus on a few of Labour’s proposals to see what they will mean for employment law under a Labour government.

Zero-hours contracts and one-sided flexibility

Labour has proposed to end “one-sided flexibility” and “exploitative” contracts, and provide more security and predictability for workers.

It intends to ban oppressive 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.

Labour intends to ensure all workers are provided with reasonable notice of change in shifts or be provided with compensation that is proportionate to the notice given for any shifts cancelled or cut short.

The New Deal states that the proposal will not prevent employers from offering fixed-term contracts (for example, seasonal work).

A lot of operators and businesses benefit from zero-hours contracts as they save labour and admin costs and provide as much flexibility to operators as they do to drivers.

The risk of abolishing some zero-hours contracts is that it will lessen flexibility on both sides, which is contradictory to Labour’s reasons of ending one-sided flexibility.

Basic day-one rights and time limits

Currently, employees require two-years’ minimum continuous service to be eligible for unfair dismissal rights. Other rights such as discrimination or wrongful dismissal are already day-one rights but the Labour Party believes day-one rights can go further to include the right not to be unfairly dismissed, the right to receive parental leave/pay and sick pay, to name a few.

The New Deal asserts that introducing day-one rights will not prevent the current five fair reasons for dismissals and the use of “fair and transparent” probationary periods can still be implemented.

Businesses will need to rethink their approach to dismissals where they are looking to let go of staff, especially as each individual will require the full and fair disciplinary process or risk claims for unfair dismissal.

Single status of worker

Currently, we have a three-tier system for employment status – employees, self-employed and “workers”.

Labour has long advocated that the current system is complex and creates uncertainty for all parties, leaving them reliant on lengthy legal processes to resolve status issues.

Labour therefore intends to create a single status of “worker” for all but the genuinely self-employed.

The New Deal suggests that this proposal will require detailed consultation prior to implementation but does not state how it will be implemented.

It will be difficult to change this area of law as employment status is currently determined by a vast amount of case law and the simplification of employment status is likely to lead to litigation.

The removal of the “workers” will also mean the loss of flexibility for those who want more freedom than employees but are not self-employed. The Labour proposal could potentially hinder flexibility for both workers and employers further.

What next?

Further self-explanatory Labour proposals include:

  • new duties on large employers to produce ethnicity/disability pay gap reports;
  • making flexible working a default right; and
  • introducing a right to switch off.

If certain proposals affect you or your business, you should look out for upcoming consultations you can join so you can have your say on how the reforms are working/not working for you and any consequential issues which may have been overlooked.

You should start the process of identifying the status of your workforce to see what percentage may be affected by the single status worker and what costs may be involved in the changing of this including any tax implications.

This is likely to become key in the context of drivers, where we already find driver engagement arrangements subject to close scrutiny from the Traffic Commissioners with potential “good repute” and “unfair competition” issues resulting.

Operators should also ensure policies/staff handbooks are updated now so anything that is to be added at a later stage is clear.

Management should be updated on what it could mean to the way staff are managed especially in circumstances where workers may receive day-one rights.

For further advice or assistance, contact JMW Solicitors’ employment team.

Written by: Laura Hadzik (Head of Commercial Road Transport/Partner) and
Nosheen Akhtar (Trainee Solicitor) – JMW Solicitors

TAGGED:legal
Share This Article
Facebook LinkedIn Threads Email Copy Link
Previous Article stagecoach adl enviro400 ev ADL announces order of 244 buses from Stagecoach
Next Article Effective clandestine preventative systems – there’s an Aquarius app for that
- Advertisement -

Latest News

Temsa HD12 and HD13 delivered to Cresta Coaches under Asset Alliance rental deal
Temsa pair join Cresta Coaches on Asset Alliance rental agreement
Deliveries
Go-Ahead London – Managing Director
Careers Jobs
andy burnham tfgm £15.6 billion (1) The funding announced by Chancellor Rachel Reeves today (4 June) has been allocated to several combined mayoral authorities to use on rail, tram, road and bus infrastructure. Transport for Greater Manchester revealed today that part of the £2.5 billion it will receive will go towards making the Bee Network fully battery-electric by 2030. An as-yet undecided portion of that will support a planned investment in 1,000 new zero-emission buses over that period, the mayoral authority said. That is part of plans to build the UK's "first fully integrated, zero-emission public transport system", with trams and trains also set to benefit. Liverpool City Region's already announced BRT system is among the projects to which its £1.6 billion will be allocated. Under those plans - due for realisation by 2028 - a high-speed network will be served by articulated buses which are modelled on the 'Glider' in Belfast. It is due to link Liverpool city centre with John Lennon Airport, and Liverpool FC and Everton FC's respective stadia along three routes. Although the model of bus has not been confirmed, a Van Hool Exqui.City on loan from Belfast was last year used as a demonstrator. That 18m vehicle can accommodate around 30% more passengers than a typical bus and has three sets of double doors. The funding will also go towards buses elsewhere in the city as the region heads towards franchising services by 2027. Liverpool Mayor Steve Rotheram with a 'Glider' which was on loan from Belfast last year - an example of the sort of bus which could serve the new BRT Bus services in the East Midlands region will be boosted by the funding, thanks to the £2 billion handed to it today by the government. Some of that allocation will be used for a rapid transit network on the Trent Arc between Nottingham and Derby. Between the two cities, the Freeport, Infinity Park Investment Zone and Ratcliffe-on-Soar will also benefit from the improved bus services. South Yorkshire Mayoral Combined Authority's newly announced commitment towards bus franchising has been boosted by £350 million in funding as part of that region's allocation. The funding for West Yorkshire will help build new bus stations in Bradford and Wakefield. Likewise, the Tees Valley Mayoral Authority will put its sum towards a new £15 million bus station in Middlesbrough. Transport Secretary Heidi Alexander says: "Today marks a watershed moment on our journey to improving transport across the North and Midlands – opening up access to jobs, growing the economy and driving up quality of life as we deliver our Plan for Change. "For too long, people in the North and Midlands have been locked out of the investment they deserve. With £15.6bn of government investment, we’re giving local leaders the means to drive cities, towns and communities forward, investing in Britain’s renewal so you and your family are better off."
TfGM’s all-electric bus plan boosted by new ÂŁ15.6 billion package
News
Local Transport Minister opens First Bus electric depot in Hengrove
Local Transport Minister opens First Bus electric depot in Hengrove
Bus
- Advertisement -
-

routeone magazine is the indispensable resource for professional UK coach, bus and minibus operators. The home of vehicle sales and the latest bus and coach job vacancies, routeone connects professional PCV operators with complete and unrivalled news coverage.

  • Terms & Conditions
  • Privacy Policy
  • GDPR Policy
  • Sustainability
  • Advertise
  • Latest Issue
  • Share Your News
routeonerouteone
Follow US
© 2024 routeone News | Powered by Diversified Business Communications UK Ltd