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What will Labour’s employment law reforms mean for arts and creative companies?

The new Labour Government has promised to begin big changes to employment law within 100 days of taking power. That means it needs to introduce legislation by the end of October, though most of it won’t come into force until 2025 or later.

Some business groups and firms are lobbying against the changes, but ITC believes our members are already good employers and will benefit from better laws stopping less scrupulous companies from undercutting.

Nonetheless, we will speak out against unintended consequences, and call for support for small employers to adapt to new laws.

The Government has not published draft legislation yet, leading some media and legal commentators to complain about a lack of detail. In ITC’s view, however, Labour politicians have made it clear they will bring in a big improvement in workers’ rights. Their manifesto and the King’s Speech set out the major elements of this reform, even if the fine details aren’t there yet. Moreover, after 14 years out of power, Labour would face a huge protest from the trade unions if it did not deliver on its first opportunity to expand workplace rights. So companies should take the Government at its word and prepare for what we have been told will change.

The new laws are likely to include:

  • Allowing a sacked employee to make an “unfair dismissal” claim at the Employment Tribunal without two years’ continuous service – probably from day one in some form, with a slightly weaker protection during a time-limited probation period. This will mean employers need to show a fair process and a fair reason for sacking someone. All companies should already follow the Acas disciplinary process when dismissing (as a minimum standard of fairness). If you do that, this won’t be too much of a change.

  • Stopping the use of some zero-hour contracts, giving staff the right to request regular hours, and requiring reasonable notice and compensation for changes in shifts. If you currently use contracts which don’t reflect the normal hours worked, contact ITC to discuss amending these.

  • Enhancing other protections for workers, including better sick pay, making it easier to request flexible working, entitlements to parental leave from the start of employment, and clearer guidance on when staff can be contacted out of hours.

  • Trade union reform, making it easier for unions to speak to workers, organise in workplaces and conduct bargaining with employers.

  • Enforcement will also be upgraded, with a new enforcement agency (similar to the Health and Safety Executive), plus longer time limits for workers to bring a claim to the Employment Tribunal.

Employment status, a tricky issue in the arts, is likely to be reformed in future. Labour said they would consult on abolishing “worker” status, so that people are either employees, with full rights, or self-employed. Even before the law is changed, the Government will crack down on false self-employment. That is another reason to review your company’s contracts to make sure you are categorising everyone in the right way.

ITC’s advice line is open to talk to members about these changes. On 15th November, we are holding an information event in Coventry, in partnership with Equity. Specialist lawyers will be there to talk about new laws. Your company can send someone to find out more.