Continuing our series about Labour’s proposed worker’s rights, we’ve found out about their positions on the right to switch off, fire and rehire, and rights from day one, as well as how these could affect your business if they were put into effect
Right to switch off
Do you contact your employees outside of work, or ask for additional work to be completed outside of their contracted hours? Right to switch off, or right to disconnect, is the idea that employers should respect their employees' time outside of work and not contact them at all. The right to switch off became particularly popular during the pandemic, when the amount of people working from home increased and it became a lot easier to continue working after hours.
In Labour’s Employment Rights Green Paper, as part of their new workers’ rights, employers will not be able to contact their employees outside of their working hours. Employees will have the right to disconnect from work.
How could this impact businesses?
If this was brought into effect, employers that contact their employees outside of work could be brought before a tribunal by an employee, and be required to pay their employee compensation. Employees could also not be discriminated against or reprimanded for refusing to work outside of their contracted hours.
Fire & rehire
Fire and rehire is an employment practice where an employee is made redundant, and then is rehired on a new contract that is less beneficial to the employee. According to Labour’s Employment Rights Green Paper, this disproportionately impacts those who are working in lower paid positions, as well as young workers and ethnically marginalised people. Typically, the threat of being without work is enough to pressure workers into agreeing to a less favourable contract.
Labour have stated that they will outlaw this practice, stating that they will improve consultation procedures to ensure that employees consult and make agreements with their workforce about any changes to their contracts. They have also stated that they will adapt the pre existing legislation for unfair dismissals and redundancy so that workers cannot be fired for refusing to consent to a new and less beneficial contract.
How could this impact businesses?
The Code of Practice on Dismissal and Re-engagement came into force on 18th July, which seeks to make it more difficult for businesses to engage in fire and rehire practices. It does echo some of the thoughts in Labour’s Employment Rights Green Paper, such as encouraging employers to contact Acas for support with consultation, and stating that they should not threaten employees with dismissal if they do not agree to a new contract.
However, Labour’s plan to outlaw the practice could mean this legislation is strengthened, and fire and rehire is completely abolished. This is a complicated bit of legislation, and it's unclear exactly how it would be implemented at this time.
Rights from Day 1
Currently, for an employee to bring a claim of unfair dismissal, they must have worked for the employer for a minimum of two years. Additionally, to receive parental pay and leave, employees must have been continuously employed by their employer for at least 26 weeks.
In their Employment Rights Green Paper, Labour has stated that employees would all receive rights from the first day of their employment. As such, they would always be entitled to raise a claim of unfair dismissal or receive parental pay and leave. Regardless of how long an employee had worked with the organisation, they would have the same rights as any other employee.
How could this impact businesses?
Whilst Labour have stated that employers will be able to continue to use probationary periods, an employer who fires an employee without a cause or reason could be in breach of the law. All dismissals would need to meet the government’s requirements of a fair dismissal. Employers would also not be able to refusal parental leave and pay based on the amount of time an employee has worked for them.
What do businesses have to do now?
At present, these proposals were only put forward in Labour’s manifesto. As such, businesses do not need to take any action. If and when Labour pushes forward on these proposals, a bill will be put forwards in the House of Commons which will need to progress through the full legislative process in parliament before it becomes law.
