The Notebook: A new deal for working people? Labour’s plan risks mass layoffs

Labour’s new plan for workers’ rights promises to put employees first, but it risks badly backfiring, writes employment law expert Dan Pollard in today’s Notebook

How Labour’s workers’ deal could backfire

Labour’s pledge to guarantee “day one rights for all workers” will end the requirement for employees to have two years’ service to claim unfair dismissal. This qualifying period was increased from one to two years by the coalition government back in 2012. 

After an employee has two years’ service employers must have a valid reason to dismiss. Acceptable reasons include redundancy, performance and ill health. Employers also have to follow procedures that look simple on paper but which can be onerous in practice and involve significant management time.

It is expected that the changes will be set out in a new Employment Rights Bill and employers will be able to include a probationary period although it is not yet clear exactly how these will work.  

The big unanswered question is whether all workers will immediately enjoy day one rights or if they will only apply to those hired after the Employment Rights Bill becomes law.  Most employers and lawyers are assuming they will apply to all employees immediately, meaning that around a third of the working population will gain rights overnight, likely sometime later this year. 

We have already seen cases where employees have been dismissed without any process, almost certainly to ensure that they do not gain rights if the law changes, whereas previously there would have been a discussion about an amicable departure before termination.   

Whilst the government’s aim is to enhance job security, the immediate impact may be that employers seek to bring forward mass layoffs and exit poor performers before the changes come in to reduce the risk of claims. As employees’ only recourse in this situation is to look to discrimination and whistleblowing protections, we expect an increase in complex litigation over the coming months. 

The four day week?

I very much look forward to a bank holiday. A prolonged weekend and a shorter work week is, for many, a cherished respite – a chance to relax and recharge our batteries, explore new cities or simply catch up with friends or family. The four-day working week is a bold idea, one that has the potential to revolutionise our time and our lives. It’s more than a three day weekend, let’s approach it with the seriousness it deserves, with a commitment to trial, to learn and to adapt.

The rise of ’employee influencers’

The idea of employees as brand ambassadors is not new. We are more inclined to trust anecdotes from each other than we are to trust curated corporate marketing. The rise of influencer marketing and social media has made this even more so with businesses recognising the benefits of tapping into the growing trend of so-called employee influencers – that is, real employees within the business who are brand ambassadors outside their usual roles and duties. This is yet another reason to think carefully about decisions that impact the workforce and look at these decisions not just through the prism of cost and legal risk.

A hidden City gem

Fancy a break from coffee chains and the chaos of the city? Host Café is a hidden gem nestled within the historic walls of a London church, the majestic arches and stained glass windows make it a spectacular yet inviting place to meet a friend, colleague or client for a coffee. A perfect spot for those that value an independent feel and a good cup of coffee. For the digitally connected, it’s a great opportunity to add a touch of historical elegance to your Microsoft Teams backdrop!

What I’ve been listening to

A podcast that stands out as a treasure trove of living history: ‘Cold War Conversations’

As a child of the 1980s, I find ‘Cold War Conversations’ to be an extraordinary podcast that offers a unique perspective and unfiltered glimpse into life under the shadow of the Iron Curtain. From intimate accounts to the tense realities of military service, the podcast paints a vivid picture of a bygone era. It’s a compelling listen for anyone interested in this pivotal period, providing lessons from the past that resonate profoundly today. Occasionally chilling, often inspiring and always fascinating, this is history animated through the voices of those who witnessed it firsthand. If you have any level of interest in this period in history, definitely give Cold War Conversations a listen.

Dan Pollard is an employment partner at Charles Russell Speechlys