From Zero-Hour Contracts To Day-One Protections: Inside Labour’s Workplace Reforms

On Thursday Labour unveiled its ambitious “Make Work Pay” plan, designed to boost wages and productivity while improving workers’ rights. This marks the government’s first major step towards achieving its promise of delivering economic growth that benefits working people across the country.

At the heart of the plan are reforms to end exploitative zero-hour contracts and unethical fire-and-rehire practices, while introducing day-one rights to bereavement and parental leave. Labour hopes this will improve job security and workplace conditions for millions of workers. The plan comes just a week ahead of the International Investment Summit, signalling Labour’s commitment to providing a stable and growth-friendly environment for business investment.

The Government hopes that the new bill, when enacted, will create a new partnership between business, trade unions, and working people. By modernising workplace laws, Labour aims to increase job satisfaction, raise living standards, and attract confident investment. At the launch of the plan, Jonathan Reynolds, the Business Secretary, emphasised the importance of ensuring that workers’ rights are aligned with the realities of modern life and businesses’ needs.

A key change in the legislation is the removal of the two-year qualifying period for unfair dismissal protection. Workers will now be entitled to protections from day one, benefiting nearly nine million people. Additionally, a statutory probation period for new hires will be introduced, allowing businesses to assess employees’ suitability while providing workers with immediate rights, thus encouraging more people to re-enter the job market.

The government will also create a Fair Work Agency to enforce new employment standards, ensuring that both workers and businesses can navigate the updated laws with confidence.

Ultimately from a political standpoint, the plan is not only a bold economic initiative but also a strategic move. After years of Conservative leadership marked, Labour would argue, by stagnation, wage suppression, and frequent industrial disputes, Labour seeks to position itself as the party of growth, fairness, and modernisation. By addressing long-standing issues like zero-hour contracts and weak workplace protections, Labour aims to appeal to working-class voters who felt left behind by Tory policies, while also attracting middle-ground voters who want economic stability and investment confidence. These are the voters Labour needs to continue to win over at the time of the next election.

However, the plan’s ambitious scope could face resistance from business groups wary of increased regulation and trade unions who may demand even stronger protections. Additionally, the scale of reforms could strain government resources and test Labour’s ability to balance worker rights with maintaining business flexibility and competitiveness.

The success of the plan will depend on its implementation and the government’s ability to navigate these competing pressures without alienating key economic stakeholders.