LABOUR'S EMPLOYMENT LAW REFORMS 

Employment Law was a key feature of Labour’s manifesto, with their Plan to Make Work Pay promising sweeping reforms. Including bills, reviews, consultations and codes of practice, it’s a lot to take in – especially for employers who have plenty of other work to get on with. We’ve summarised what Labour has promised, along with when and how it will be delivered. 

The Employment Rights Bill will remove qualifying periods. It is estimated that this will benefit around 9 million people (the number who currently have less than 2 years’ service) at any one time, though this number may fluctuate depending on the rate people change jobs. 

The Labour government has committed to tackling “one-sided flexibility,” which benefits employers but not employees. But rather than the drastic reform promised elsewhere, the Make Work Pay plans talk of adapting and building on current law around flexible working. So what changes will we see in flexible working? 

Labour’s plan to Make Work Pay promised to boost wages and put “more money in working people’s pockets.” The minimum wage will reflect the real living wage. But what are the other measures to improve pay, and how will they affect employers? 

The Worker Protection (Amendment of Equality Act 2010) Act 2023 came into force in October 2024, but already faces changes under Labour’s proposed Employment Rights Bill. 

Labour committed to combine ‘employee’ and ‘worker’ into one category, creating a two-status system and making more people eligible for full employment rights. How can employers prepare for the change? 

The government described its Plan to Make Work Pay as “the biggest upgrade to rights at work for a generation,” and estimates that the Bill could increase claims to the Employment Tribunal by around 15%. The reforms will directly cost businesses in the “low billions” of pounds per year. 

 

How might the reforms lead to more claims?