Labour vs Conservative Manifesto Pledges on Employment Law:
What Employers Need to Know

 

With the publication of both the Labour and Conservative party manifestos ahead of the 2024 General Election, UK employers now have a clearer picture of the potential direction of employment law reform—depending on the outcome at the polls.

While the Labour Party is proposing one of the most far-reaching overhauls of employment law in recent memory, the Conservative Party has largely pledged to preserve flexibility in the labour market and make targeted reforms.

Here’s what each party is proposing, and what it could mean for your organisation.

🔴 Labour’s Proposals: “The Biggest Upgrade to Rights at Work in a Generation”

Labour has committed to implementing its full “Plan to Make Work Pay” within 100 days of entering government. The proposals span six key areas, including job security, fair pay, equality, and enhanced enforcement.

Key Labour Commitments for Employers:

  • Unfair dismissal protection from day one
    Removal of the qualifying period for unfair dismissal rights would significantly affect how employers manage probation and terminations.

  • Ban on “exploitative” zero-hours contracts
    Workers would be entitled to contracts reflecting their regular hours, based on a 12-week reference period.

  • Right to flexible working from day one
    Employers would need to justify refusals on reasonable grounds from the outset of employment.

  • Right to switch off
    Inspired by EU models, this would give employees legal protection against out-of-hours work communications.

  • Stronger pregnancy protections
    Making it unlawful to dismiss a woman within six months of returning from maternity leave, barring exceptional circumstances.

  • Enhanced pay gap reporting
    Mandatory ethnicity and disability pay gap reporting for larger employers, alongside strengthened gender pay requirements.

  • Employment status reform
    Labour proposes a simplified two-tier system: ‘workers’ (including employees) and the genuinely self-employed—potentially expanding rights to a wider group.

  • Greater union access and industrial action rights
    Labour would repeal recent restrictions, making it easier for unions to organise and gain recognition.

  • New Race Equality Act
    Including a legal right to equal pay for ethnic minorities and strengthened protection against dual discrimination.

  • Stronger enforcement mechanisms
    A new single enforcement body and extended tribunal claim deadlines (to six months) would increase accountability.

⚠️ Takeaway: If Labour wins, employers may face rapid and far-reaching reforms. Early planning and policy reviews will be essential.

🔵 Conservative Proposals: Targeted Reforms with Emphasis on Flexibility

In contrast, the Conservative manifesto promises to preserve a “flexible and dynamic labour market” and avoids major structural reforms to employment law. Their pledges include:

Key Conservative Commitments:

  • Lower National Insurance
    A further 2p cut for employees and abolition of Class 4 NI for the self-employed by the end of the next Parliament.

  • Apprenticeship expansion
    Pledge to deliver 100,000 new high-quality apprenticeships annually in England, with added flexibility in creative sectors.

  • Fit note overhaul
    Plans to shift the responsibility for issuing fit notes from GPs to occupational health specialists as part of the new WorkWell service.

  • Strikes and union regulation
    Continued implementation of the Strikes (Minimum Service Levels) Act and reintroduction of stricter union rules in Wales.

  • Biological sex in law
    Proposed amendments to the Equality Act to clarify that the protected characteristic of sex refers to biological sex.

⚠️ Takeaway: A Conservative-led government would favour continuity and incremental reform, with a focus on welfare-to-work initiatives and regulatory stability.

FAQs: What Do These Manifesto Pledges Mean for Employers?

Q: Will Labour’s pledge to end zero-hours contracts make casual work illegal?
A: Not entirely. Labour aims to end “exploitative” contracts by giving workers the right to contracts that reflect actual hours worked. True casual arrangements could still be allowed, but only where genuinely appropriate.

Q: Can Labour really introduce all this in 100 days?
A: While legislation could be introduced quickly, much of the change would depend on secondary regulations and consultations. Not everything would be implemented overnight, but employers should expect movement early on.

Q: What is the “right to switch off”?
A: This would give employees the legal right to disconnect from work communications outside of contracted hours. Employers may need to revise expectations and policies around remote working and digital contact.

Q: How might pay gap reporting change?
A: Labour plans to make ethnicity and disability pay reporting mandatory for larger employers, alongside updated gender pay requirements that cover outsourced workers and include action plans—not just data.

Q: Will the Conservative changes to fit notes affect absence management?
A: Potentially. If fit notes are issued by new occupational health professionals instead of GPs, employers may gain access to more tailored assessments—but implementation will be key.

Final Thoughts

The 2024 General Election presents two very different visions for the future of employment law. Labour’s proposals would reshape workplace rights, entitlements, and enforcement significantly, while the Conservatives offer a lighter-touch, pro-business approach aimed at preserving flexibility.

Regardless of the outcome, employers should begin to review existing HR policies, train line managers, and assess risk exposure to prepare for potential legal reforms in the next Parliament.

If you’d like guidance on how to prepare your business for a possible shift in the employment law landscape—or support reviewing your contracts, handbooks or grievance procedures—our specialist employment team is here to help.