Employers will need to upskill if Labour’s proposed employment law changes come to pass

Posted: 02/07/2024

If Labour is elected, the party would revoke several anti trade union laws. First, the Trade Union Act 2016, which introduced restrictions on industrial action such as imposing longer notice periods and higher ballot thresholds. Second, the Strikes (Minimum Services Levels) Act 2023, which requires workers in key sectors to provide minimum levels of service during industrial action.

Labour would also give more support to collective and sectorial bargaining. As well as altering thresholds for statutory recognition claims and ballot majorities, employers would have a new duty to inform employees of their right to join a union.

There is no doubt a Labour victory would see a seismic change in how employers manage their workplace relationships. If the manifesto changes are enacted, employers would be wise to consider building stronger relationships with unions. There will be a spectrum when it comes to willingness to change; while some employers will see benefits in terms of clarity in dealings with unions, others will remain reticent. We are likely to see union activity increase in a number of sectors, such as technology.

In contrast, the Conservatives would continue to roll out the Strikes Act. Already, this is controversial. The question for the Conservatives would be how far they intend to push this law, despite many months of resistance from the trade unions, threatened legal claims and thus far, its limited impact in reducing industrial action.

Labour proposes more changes beyond trade unions, such as the introduction of new day one employment rights, banning ‘exploitative’ zero hours contracts, and simplifying the status of workers to be either ‘worker’ or ‘self-employed’. In all these areas, the devil will be in the detail and all changes will be subject to consultation. It will be interesting to see how these proposals evolve during the consultation period before becoming law.

No matter how far they are enacted, the need for employers to educate themselves now about the proposed changes cannot be emphasised enough. They need to be realistic about the level of upskilling required within their business. Larger employers may even need to consider developing a dedicated team focused on trade unions and wider industrial relations.

Undoubtedly, a period of uncertainty is expected, and clients are advised to wait for details of the proposed legislation, which is likely to emerge within the first 100 days of a new Labour government. Then, we will have a better understanding of the scale of change. 

Return to news headlines