Labour’s flagship workers’ rights package, spearheaded by deputy leader Angela Rayner, was once heralded as the most radical set of reforms to employment law in decades.
Branded as the ‘New Deal for Working People’, it promised an end to exploitative employment practices, the strengthening of workers’ protections, and the introduction of key rights such as the “right to disconnect” from work outside contracted hours.
In its manifesto, Labour said the changes would “improve the lives of working people across the entire UK” and “create a partnership between business and trade unions”.
However, over the past year, the party has faced criticism after several pledges made to strengthen workers’ rights have been quietly watered down or dropped altogether.
Trade unions, many of which strongly supported the original deal, have led the strong condemnation of the changes. Unite’s general secretary, Sharon Graham, claimed in May 2024 that the proposals now had “more holes in them than Swiss cheese.”
Labour has denied any dilution of the party’s promises. However, the changes have left many questioning how much of Labour’s original workers’ rights agenda will remain intact once the bill to implement them is passed.
Here are all the ways Labour’s workers’ rights pledges have been watered down:
The original ‘New Deal for Working People’ pledged to bring a “right to switch off” so that “working from home does not result in homes turning into 24/7 offices”.
“We will follow similar models to those already in place in Ireland and Belgium, giving workers and employers the opportunity to have constructive conversations and work together on bespoke workplace policies or contractual terms that benefit both parties,” it said.
This policy was intended to address the growing issue of an “always-on” work culture. The original document claimed that “a culture of presenteeism is damaging to morale and productivity”.
This specific pledge did not appear in the Employment Bill, which is currently making its way through Parliament, but ministers promised it would emerge in the future.
However, the Sunday Times reported that ministers are expected to say in the coming week that the policy has been dropped when they table a series of amendments to the Bill.
A Government source told the newspaper the “right to switch off is dead”.
Ministers are said to be making the change in a bid to boost business confidence after the Budget increased national insurance contributions, putting extra costs on employers.
The Government source added: “Growth that puts money in people’s pockets is the number one priority of this Government’s plan for change.
“That means making Britain the best country in the world to do business, and a key part of that is removing unnecessary barriers.”
Extending probationary periods
Originally, Labour pledged to reform probationary periods, proposing that workers would receive employment protections, such as protection from unfair dismissal, from day one of their jobs.
In briefing notes accompanying the King’s Speech in 2024, the Government said that it would “continue to ensure employers can operate probationary periods to assess new hires.”
Ministers promised to consult on what the maximum probationary period should be, and unions pushed for it to be set at six months.
Unions have been strongly pushing for the limit to be set at six months. However, it was reported in October 2024 that the Government would favour a nine-month period following consultation following representations from businesses.
“The government has a clear view that businesses need time to assess new hires, and we think that probation period should be nine months,” a Labour official told the Financial Times that month.
“In practice, it means firms can dismiss new hires more quickly than staff who have been employed for more than nine months while still honouring our commitment to day one rights.”
The decision has raised concerns among employment rights advocates, who argue that extending probationary periods will leave workers vulnerable to dismissal without cause for an extended period.
Labour initially promised to ban exploitative zero-hours contracts outright, aiming to provide workers with stable and predictable working hours. This commitment was a key part of its pledge to end insecure employment practices.
However, by mid-2023, Labour had softened this position. Instead of an outright ban, Labour leaders suggested they would target only the “most exploitative” zero-hours contracts.
This shift became clear during speeches at the TUC conference in September 2023, where Starmer stated that the party would ensure “greater security” without outright prohibiting the contracts.
When the finalised document outlining the plans was published in May 2024, it stated that Labour would “end ‘one-sided’ flexibility and ensure all jobs provide a baseline level of security and predictability, banning exploitative zero hours contracts and ensuring everyone has the right to have a contract that reflects the number of hours they regularly work, based on a twelve week reference period.”
Changes to ‘fire and rehire’ restrictions
Labour initially promised to ban the controversial “fire and rehire” practice, which allows employers to dismiss staff and then rehire them on less favourable terms.
By late 2023, however, Labour had backtracked. Instead of an outright ban, the party indicated it would introduce regulations to limit the practice rather than prohibit it entirely. This change was formally announced in November 2023 in response to lobbying from business leaders.
Its 2024 document stated that this change was brought in to support businesses whilst also protecting workers.
“It is important that businesses can restructure to remain viable, to preserve their workforce and the company when there is genuinely no alternative, but this must follow a proper process based on dialogue and common understanding between employers and workers,” the document stated.
Trade unions have condemned this move, arguing that it risks forcing workers into worse contracts and threatening them with job loss. Unite general secretary Sharon Graham said in October 2024 that the bill “still ties itself up in knots trying to avoid what was promised”.
What is in the Employment Rights Bill?
The Employment Rights Bill is a proposed set of legislative changes that would strengthen workers’ rights in the UK by improving job security, pay conditions, and trade union protections.
It brings into law the changes promised in Labour’s ‘New Deal for Working People’, which was announced before the general election.
Here are the measures included in the legislation, which is currently progressing through Parliament. Some of these measures could be changed before the bill passes into law.
Right to flexible working: Employers must justify rejecting flexible work requests, and such claims will be referenced in tribunals. Ending fire and rehire: It will become automatically unfair to dismiss employees to rehire them on worse terms. Banning ‘exploitative’ zero-hour contracts: Employers will be required to offer guaranteed hours based on an employee’s regular working pattern. Compensation for cancelled shifts: Workers will be entitled to compensation for shifts cancelled or changed at short notice. Day one protection from unfair dismissal: Employees will gain unfair dismissal protections from their first day of work. Unfair dismissal protection for pregnant workers: Protections will be strengthened to prevent the dismissal of pregnant employees and new mothers. Day one right to parental and paternity leave: Paternity leave will become a right from day one and can be taken after shared parental leave. Right to unpaid bereavement leave: Bereavement leave will be extended to more family members and allow multiple leave periods. Removing the lower earnings limit for sick pay: All employees will qualify for statutory sick pay regardless of income. Abolishing the waiting period for sick pay: Sick pay will be provided from the first day of illness instead of after four days. Tightening tipping laws: Employers will be required to consult workers before making changes to tipping policies. Establishing the Fair Work Agency: A new agency will be created to enforce employment rights, including minimum wage and holiday pay. Improved pay for social care workers: A Fair Pay Agreement framework will be introduced to improve pay negotiations in social care. Improved pay for school support staff: The School Support Staff Negotiating Body will be re-established to oversee pay and conditions. Improved protections for maritime workers: UK employment laws will apply to ships frequently operating in British waters. Repealing strike restriction laws: The requirement for minimum service levels during strikes will be removed. Removing legal restrictions on trade unions: The threshold for industrial action votes will be lowered, and opt-in rules for political funds will be removed. Giving unions workplace access rights: Trade unions will gain clearer rights to access workplaces for member meetings. Simplifying trade union recognition: Unions will no longer need to prove majority workplace support before being recognised. Strengthening provisions for union reps: Union reps will have the right to proper workplace facilities and time off for their duties. Workers informed of the right to join a union: Employers will be required to inform new and existing employees of their right to join a trade union. Extra protections against union blacklisting: It will become illegal to sell or supply trade union member details for discrimination. Strengthening collective redundancy rights: The 20-worker redundancy consultation rule will apply across multiple business sites. Strengthening protections against sexual harassment: Employers will be legally required to take all reasonable steps to prevent workplace sexual harassment. New sexual harassment whistleblower protections: Sexual harassment will be added to the list of protected whistleblowing disclosures. Requiring workplace equality action plans: Large employers will have to publish plans on how they will address gender pay disparities. Improving gender pay gap reporting: Companies will be required to provide gender pay data for outsourced service providers. Re-establishing the ‘two-tier code’: Public sector contractors will have to ensure new employees are not paid less than transferred staff. Read More Details
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