Our Maree Cassaidy shares a summary of new law that might come from the new Labour government affecting law firms and partners.
Labour’s manifesto gives a pretty good idea of the direction of travel for employment rights, but what aspects are likely to impact partners and firms? Labour has indicated the following plans, which we will be keeping a watchful eye on and continuing to assess in the partnership and employment spaces:
- A longer-term plan to review and reform the categories of employment status, following full consultation. Labour has proposed to combine the current employee and worker categories, which could have significant implications for LLP members who currently could fall into the “worker” category, but who cannot be considered employees based on current case law. This could have significant ramifications for LLP members and firms.
- Introduction of Day One rights for employees. Crucially, if implemented, this would remove the current two-year qualifying period for unfair dismissal claims and remove the qualifying period for parental leave and sick pay. If the worker categories are combined as above, could this also be available to LLP members?
- Plans to strengthen the framework around whistleblowing in the workplace, including on sexual harassment.
- Plans to strengthen rights to equal pay, with a focus on women’s rights.
- Reforms to the tax treatment of carried interest, which could shake up private equity partnerships.
We will eagerly be awaiting the King’s Speech on 17 July, and the employment bill that Labour has vowed to introduce within the next 100 days, which will hopefully give some clarity on the above points.
