The new government’s proposed changes to employment contracts

The new labour government plans to make many changes to improve worker’s lives in the UK. Here, we’ll focus on what contract and policy changes are likely coming to employers in the near future.

1. Contracts will need wording to let employees know they have a right to join a trade union

Not only that, but employers will now have a duty to remind employees regularly of their right to join a trade union. They have not stated any more details on this yet. However, trade union change is a huge topic on the work agenda for Labour, so expect lots of change within their first 100 days in this area. They believe that by building stronger trade unions, and bringing the rules into the 20th century, it can make strides towards tackling a lot of issues at work regarding job security, inequality, discrimination and low pay.

2. Contracts for the care sector must give details on pay for travel time

The care sector is another focus for the new government as adult social care currently has a turnover rate of nearly one-third and a vacancy rate of about 10%. Working with HMRC, they will ensure that regulations on travel time in sectors with multiple working sites are enforced. The important part is that they will be enforcing this new rule in workers' contracts, which hasn’t been done in the past. They will also focus on working towards fair pay and conditions for care workers, again working with trade unions to negotiate what is fair. In doing so, they hope to attract more workers into the sector and increase job satisfaction, reducing turnover.

3. Employers must give reasonable notice of changes to shifts or working time 

In a bid to give workers more reasonable notice of shift changes, employees may soon be able to claim compensation for cancelled shifts proportionate to the amount of notice given of the change. This comes alongside their focus on zero-hour contracts and the desire for workers to have a contract that reflects the number of hours they normally work and, therefore, being able to rely on a more predictable income.

4. Self-employed workers are entitled to a written contract

With over 4 million people in the UK self-employed, Labour recognises this as an area to support. Introducing the right to a written contract will be a welcome regulation for many. They have also mentioned the need to strengthen trade union rights to benefit self-employed workers. You will undoubtedly hear more about trade union regulation over the coming year.

5. Businesses will need a policy to cover 'Right to switch off' from work

A significant increase in people working from home has highlighted the need for a ‘Right to switch off’ policy. For some employees, where their home is their office, they’re finding it difficult to separate their work life from their home life. Labour understands that this is unique to each type of organisation and situation and wants to give employers and workers the chance to work together and create bespoke policies that benefit both parties.