Labour’s Plan to Make Work Pay: what’s next?
On 4 July 2024, Labour won the UK general election. The new Parliament met on 9 July 2024 and the state opening will take place on 17 July 2024. The Labour government plans to make significant changes, impacting both employers and workers.
What can we expect to happen next?
How quickly will the Labour implement the changes?
The Labour Party manifesto confirms that Labour will implement its Plan to Make Work Pay and introduce legislation reforming employment law within 100 days of entering office. It also plans to reform the points-based immigration system and review health and safety guidance, although no timeframe has been provided.
Whilst Labour expects to be able to introduce some of the changes quickly, it will engage with businesses, workers and civil society on any changes requiring secondary legislation. This will obviously take time.
Labour anticipates that reforms, such as the creation of a single enforcement body and removing the lower earnings limit on statutory sick pay, can be acted on quickly and included in an Employment Rights Bill.
Further, Labour proposes to write to the Low Pay Commission to change its remit so that ‘alongside median wages and economic conditions, the minimum wage will for the first time reflect the need for pay to take into account the cost of living’.
Proposed changes which Labour intends to consult on include banning exploitative zero hours contracts, ending fire and rehire, and introducing basic rights from day one to parental leave, sick pay, and protection from unfair dismissal.
Labour has confirmed that the proposal to move towards a single status of worker will require a full and detailed consultation and that its planned review of parental leave will be undertaken within the first year of government.
How can employers prepare for the changes?
Employers are advised to keep up to date with progress on the proposed changes. At AfterAthena we will provide updates as and when they are available.
Here are further steps employers can take:
- Single status of worker: review practices surrounding the engagement of any self-employed individuals to ensure that they are genuinely self-employed
- Unfair dismissal rights: ensure good due diligence in recruitment practices, actively manage probationary periods, and address any concerns employers may have in relation to the performance of employees who have under two years’ continuous service
- Flexible working: ensure that employers are ready and able to deal with flexible working requests in an efficient manner and reduce any obstacles to flexible working, such as ensuring that available technology enables good collaboration with, and amongst, remote workers
- Health and safety: review health and safety practices and take practical steps to tighten up health and safety procedures
- Immigration: employers who engage workers from abroad are advised to ensure they comply with employment law to avoid being banned from hiring workers from abroad
- Zero hours contracts: review any zero hours contracts and, where possible, offer employees and workers a contract that reflects the number of hours they regularly work, based on a twelve-week reference period
Further information on Labour’s proposals is available in our article here. Our recent online seminar provided insights into how the proposed changes could affect employers. To view the recording of the webinar, download the AfterAthena Hub app.

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