Navigating Labour’s ‘Right to Switch Off’ Plan — What Employers Need to Know

The Labour Party is considering introducing a ‘right to switch off’ policy, which could lead to significant compensation pay-outs for businesses that breach agreed out-of-hours boundaries. Inspired by similar policies in Ireland and Belgium, Labour’s proposal aims to help employees maintain a clear separation between work and home life.

Under the plan, employers and employees would agree on a code of practice outlining normal working hours and when it’s acceptable for workers to be contacted outside of those hours. While breaching this agreement alone may not result in litigation, it could be used as an aggravating factor in broader employment tribunal claims, potentially increasing compensation awards by thousands of pounds.

Currently, breaches of codes of practice, such as those set out by ACAS for handling grievances and disciplinary matters, can increase compensation by up to 25% if the employee wins their case. Labour’s plan could introduce similar penalties for employers who repeatedly violate out-of-hours agreements.

The government is still finalising the details, but it’s clear that businesses will need to navigate these new rules carefully. The plan is likely to include flexibility to accommodate different working patterns, but larger companies may be required to adopt a code of practice.

In countries like Ireland, businesses develop ‘right to disconnect’ policies, and in Belgium, companies with more than 20 employees must follow similar guidelines. However, these policies aren’t legally binding on their own. The key difference with Labour’s proposal is that breaching the code of practice could lead to higher compensation pay-outs.

The direction of Labour's plan seems to favour a more balanced approach, avoiding rigid regulations that don’t account for the diverse needs of different sectors. However, the potential for increased compensation means that businesses will need to be proactive in setting clear boundaries and ensuring compliance.

At Bell Taylor, we know that staying ahead of new regulations can be challenging, especially with Labour's ‘right to switch off’ plan being just the start of many expected changes to employment law. With the biggest shifts in employment law since the 1970s on the horizon, and Labour reshaping the employment landscape after 14 years of Conservative government, now is the time for businesses to be proactive and seek advice. Whether it’s reviewing your current policies, addressing how you manage employees, or preparing for the next wave of reforms, we’re here to help. Our practical approach ensures that your business stays compliant while protecting both your interests and your employees.

For more information on how we can help your business prepare for these changes, feel free to get in touch directly:

Bell Taylor

Office: 01743 298000

Richard: [email protected]

Ben: [email protected]