The recent election of the Labour government in July 2024 has sparked significant interest and speculation about potential changes in employment law. Labour has historically been associated with policies aimed at protecting and enhancing workers' rights, and their latest electoral victory suggests a shift towards a more employee-centric legal framework. Here are some of the potential employment law changes that might emerge under the new Labour administration:
1. Minimum wage
One of the cornerstones of Labour's campaign was the promise to bring reform to the minimum wage. The new government is expected to remove the lower minimum wage for younger people. This change aims to reduce income inequality and improve the standard of living for low-wage workers.
2. Day one rights
Labour has indicated a commitment to protecting workers' rights from day one. This could include:
3. Review of employment status
The new Government have outlined their intentions to review the realms of employment status. Currently, there are two common types of status, being “employee” and “worker”. It is expected that Starmer’s Government will move towards the single status of “worker”.
4. IR35
Whilst rumours are just that, with the expected reform of employment status looming, it can only be assumed that the new Government will look to review the current IR35 legislation too. Noting that the new Government have already hinted towards the potential move to single status of worker, we would expect that, on the proviso that boundaries of employment status are defined to great detail, there is the potential that the new Government could remove reliance on IR35 altogether.
Conclusion
The new Labour government’s approach to employment law is likely to focus on creating a fairer, more equitable workplace for all employees. From the previous Labour Governments that the UK has seen, we can expect to receive twice annual updates from the Government in April and October where Starmer and his colleagues will set out their intentions for the period ahead. Employers and employees alike should stay informed about these potential changes to prepare for the evolving legal landscape.
