What education clients could consider doing ahead of a possible Labour government

Should the Labour party be successful in some form at the election, its plans in relation to changes to employee rights are substantial and widespread. Indeed, if the changes proposed are implemented, they are likely to amount in real terms, to the most significant enhancement of employee rights in decades. We are eagerly awaiting further details of what is proposed and the timeline, but if Labour is successful (even in some form), it is highly likely that there will be some change to the way in which schools need to operate their HR functions. We have provided a summary of the proposals below and some practical steps which schools could be thinking about now, with a view to being prepared for any changes in the future.

Changes that may be made, if Labour win the general election include:

1. Moving towards a single status of worker
2. Making ordinary unfair dismissal a ‘day one’ right (reportedly, provision may be made to allow a fair dismissal within a probationary period)
3. Mandatory ethnic and disability pay gap reporting
4. Strengthening trade union rights
5. Banning zero hours contracts
6. Ending ‘fire and re-hire’
7. Employers being required to take active steps to prevent anyone from harassing workers, including third parties. 
8. Extending the time period for bring claims to employment tribunals
9. Removing the cap on the compensation amounts for ordinary unfair dismissal
10. Banning unpaid internships, except on an education training course.
11. Making it unlawful to dismiss a woman who is pregnant for six months after her return to work, except in specific circumstances.
12. Increasing statutory sick pay
13. Extending statutory maternity and paternity leave

Clearly, some of these proposed changes are radical and, if introduced, would have significant impact on the way that schools manage their employees and on employment tribunal claims. However, the detail of many of the proposals are unknown and it is probable that some of the proposals could be watered down. 

Labour has given a commitment to bring in changes within the first 100 days if they win the election. As such we may see a new employment bill this year, although it may be another two years before changes are in force. 

Commentary on such matters has suggested that if the Conservatives do not hold onto power, within the first six months of a Labour government we could see reduced service to bring a claim of unfair dismissal, uncapped unfair dismissal compensation and an extended time frame to submit tribunal claims.

We would strongly advise schools to be considering taking the following action to prepare:

Probationary periods

• Ensure that contracts of employment have probationary period clauses for all new employees.

• If a probationary period clause already exists, review it and ensure that the probationary period is for at least six months - with an option to extend for a further six months with the right to appeal the extension.

• Put in place procedures for dealing with a termination within a probationary period.

Performance management/capability procedures

• Review performance management/capability process, so that the employer can effectively deal fairly with unsuitable recruits swiftly. 

Recruitment

• Be really careful with recruitment process. Don't hire in haste. Think about further development of recruitment processes to be more robust.

• If you are an employer of over 250 employees

• Begin monitoring and taking action on ethnic pay gap now, to ensure readiness once ethnic pay gap reporting is put in place.

Changes to terms and conditions?

• If employers are considering making changes to terms and conditions, we would suggest that these processes are progressed now, as there are likely to be changes to fire and rehire procedures.