Q3 2024 in focus UK ELECTION UPDATE

As we focus on the new Labour government and anticipate the early Autumn budget, it is crucial to understand how your freelance and temporary workforce may be impacted.

Labour’s New Deal for Working People will feature the Employment Rights Bill. Business Secretary Johnny Reynolds confirmed that the Department for Business and Trade will spearhead this Bill, with significant input from Deputy Prime Minister Angela Rayner.

Potential changes to be aware of include:

• Simplified Employment Status: The current employment types (employee, worker, and self-employed) will be simplified to just employed and self-employed. This change means that current PAYE temporary workers could become employees with all associated rights, pending a detailed consultation.
• Basic Rights from Day 1: Statutory rights, including unfair dismissal protection and family-friendly policies like maternity and paternity pay, may start from the first day of employment.
• Zero Hours Contracts: Labour’s aim to ban zero hours contracts for a more balanced employer-employee relationship is under review. The final approach needs clear definition to avoid disadvantaging those who benefit from these contracts.
• Flexible First Approach: Employment agreements will prioritise flexibility to accommodate individual needs, this may be reflected in a Code of Practice rather than legislation.

Although the timeline for implementing these changes is uncertain and consultations will likely take time, Sir Keir Starmer has emphasised that “change begins immediately” and MPs’ summer holidays will be cut short to expedite the passage of new laws.

We recommend starting your preparations now, and prioritising the following actions:

• Review your workforce and consider the additional costs for extended provisions like family-related leave and sick pay.
• Assess your current use of zero-hour contracts and explore alternative options.
• Re-examine your freelance and temporary worker contracts and policies.