With a change of government soon on the horizon and it being highly likely that Labour will be calling the shots, the landscape of employment legislation in the UK is set for some significant changes. While we await their official election manifesto, Labour's 2021 Green Paper, ‘A New Deal for Working People,’ along with various pledges and speeches, give us a glimpse into what might be in store.

Labour has pledged to introduce a new Employment Rights Bill within 100 days of gaining power! (As you recover from that gasp) this doesn't mean that it will be passed within 100 days, only that it will be introduced for debate by the House of Commons and House of Lords. But still....there's some huge proposals here that could mean big shifts for the creative sector. 

Here's a run down of key proposals:

A Radical Overhaul of Employment Categories

Labour plans to simplify employment classifications, eliminating the traditional 'employee' category (currently a three tiered system of 'employee', 'worker' and 'self-employed'). Instead, we’d see a two tiered system with only 'workers' and the genuinely 'self-employed'. This shift aims to extend full employment rights to a broader group of people, giving current 'workers' a big uplift in rights and protections which would impact the gig economy in particular. However, this could also mean more bureaucracy for companies managing diverse work arrangements.

Day-One Unfair Dismissal Claims

One of the proposals which will make many go wide eyed is the right to claim unfair dismissal from the very first day of employment. Historically, this qualifying period has shifted, but Labour’s plan to enforce this right from day one is unprecedented. However, a revised version of the Green Paper which was leaked earlier in May indicates that this right would not prevent fair dismissal including reasons of capability, conduct, redundancy or interestingly probation periods so long as there are fair and transparent processes and rules. 

For those studios and businesses who often deal with short-term projects, this change could necessitate a rethinking of existing hiring and onboarding processes. It will  be imperative for studios to be more strategic in their hiring processes, as well as ensuring they have strong onboarding and probation processes in place, ensuring clear communication, feedback & training as well as fair and timely management. With the ability to claim unfair dismissal from day one, even short-term employees could bring legal action if they feel they’ve been dismissed unfairly. Creative companies, which often hire on a project-by-project basis, may face an increased risk of such claims, leading to potential legal costs and complications.

The Right to Disconnect

Labour’s proposed 'right to disconnect' seeks to ensure workers are not contacted outside working hours, a policy already in place in countries like France. With remote work blurring the lines between professional and personal time, this move could help restore balance. However, roles requiring flexibility, particularly in fast-paced creative environments, might face challenges. Clear guidelines and exceptions will be crucial to make this policy workable.

End of Fire and Rehire Practices

Under Labour’s proposed changes, the controversial practice of ‘fire and rehire’ would be banned. This practice, used by some companies to enforce a change of terms and conditions of employment, has been criticised for its impact on job security. For the creative sector, which often sees fluctuating project-based work, this could mean more rigid negotiations with employees when adjusting roles and responsibilities.

Strengthening Collective Bargaining

Labour aims to bolster collective bargaining, setting  minimum pay rates and conditions across different sectors of the economy. This could help standardise pay, potentially reducing wage disparities. However, it could also limit flexibility in salary negotiations based on individual talent and experience.

Directors Held Personally Liable

A significant change would be making company directors personally liable for unpaid tribunal awards. This measure aims to ensure compliance with tribunal decisions, holding those at the top accountable. For creative studios and agencies, this underlines the importance of robust HR practices and adherence to legal obligations.

The Gig Economy Shake-Up

Labour’s stance against zero-hours contracts could reshape the gig economy. The flexibility offered by such contracts has been a double-edged sword, providing freedom but often at the cost of job security. The creative sector, which relies heavily on freelance and gig work, might see a move towards more stable employment models. This could benefit workers but also increase operational costs for companies.

Preparing for Change

While these proposals paint a picture of a more regulated and employee-focused future, their implementation and impact will depend on the specifics and how they are enforced. Creative companies should start considering how these changes might affect their operations, from hiring practices to contract negotiations and workplace policies.

Staying informed and proactive is crucial for navigating this potential legislative shift. The team at Fresh Seed is here to assist you, helping you identify impact areas you might not have considered and guiding you to make your operational transitions as smooth and efficient as possible.

Interested in chatting to us about this and seeing how we can help you prepare for change? Reach out to us using the button below 😊