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6 ways Labour’s proposed reforms will impact schools
Written by Jane Hallas on 9 September 2024
As the new Labour government continues to advance its legislative agenda, educational institutions must be prepared to adapt to the changing employment landscape.
From primary to higher education, schools will face significant shifts in employment law that could affect everything from staffing practices to financial management. With reforms such as day one employment rights, a ban on zero-hour contracts, and default flexible working on the horizon, schools must closely evaluate their policies and practices to ensure continued compliance.
This blog explores six significant areas schools should pay attention to and the key challenges and opportunities they will encounter.
1. Day one employment rights
The promised introduction of day one employment rights means schools must think very carefully about recruiting the right people and having probationary periods. If you don’t currently include probationary periods in your teaching contracts, these should now be included.
Where you do have probationary periods, it’s important that these are properly followed and employees are given feedback and support throughout. This will ensure there is clear evidence to substantiate a decision to dismiss someone for failing their probationary period.
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2. Ban on zero-hour contracts
For schools that employ support staff, such as teaching assistants or lunchtime supervisors on zero-hour contracts, Labour’s proposals surrounding these contracts would require restructuring of employment terms.
It’s not entirely clear whether the government will actually ban zero-hour contracts, but it has signalled its intent that workers would need to be offered contracts that reflect their actual hours, potentially making staffing and budget planning more complex. Schools must also provide more predictable schedules and may face increased costs related to permanent staffing solutions.
3. Making flexible working the default
Labour’s emphasis on making flexible working a default right from day one would force schools to accommodate requests for flexible hours unless it is unfeasible.
For teachers and support staff, this could mean negotiating new working patterns around classroom timetables and school events. Schools would have to ensure policies are in place to manage these requests without disrupting the educational needs of students.
4. End of fire and re-hire practices
While “fire and rehire” practices are less common in schools, Labour’s proposed changes to this practice may impact the independent school sector, where many are looking at moving away from the Teachers’ Pension Scheme (TPS) and considering dismissal and re-engagement on new terms.
The previous government had already introduced a new Statutory Code of Practice on Dismissal and Re-engagement, which came into effect in the summer, and employers have always had to take care when dismissing and re-hiring because of the risks of claims. It’s likely, though, that there will be a greater emphasis on trying to avoid dismissal and re-engagement altogether rather than an outright ban on the basis that if it is banned, then you are left with just firing staff and no rehiring.
5. School Support Staff Negotiating Body
The reinstatement of the School Support Staff Negotiating Body will create national terms for non-teaching staff. This could lead to higher costs for schools if pay scales and career progression are set centrally, limiting the flexibility of individual schools to manage their own budgets and staffing structures.
6. Increased VAT charges on schools
The introduction of VAT on independent school fees from January 2025 places will mean a 20% charge on these institutions, raising costs for parents and potentially reducing school budgets.
This financial strain may lead to staff reductions or resource cuts, complicating compliance with Labour’s employment reforms, such as job security and redundancy protections. Rising supplier costs due to VAT increases could further challenge budget management for independent and state-funded schools.
Impact
Navigating the new government’s proposed employment reforms will be complex for schools, requiring thoughtful adaptation to new legal and administrative realities.
From ensuring compliance with day one rights to adjusting employment contracts and accommodating flexible working requests, these changes could place significant demands on school leadership and HR teams. However, by proactively preparing for these shifts, schools can minimise legal risks and create more supportive and equitable working environments for staff.
As the education sector braces for these reforms, schools that approach these challenges with a strategic, forward-thinking mindset will be best positioned to thrive in this evolving regulatory landscape.
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Need help preparing for Labour's proposed employment reforms?
With specialist education teams, WorkNest offers expert, sector-focused advice to help schools manage risk and navigate employment challenges. Our legal and HR experts can work with you to:
- Update your policies and procedures to ensure you stay compliant
- Deliver tailored HR training for your leadership team
- Provide professional advice on employee queries and disputes
- Roll out eLearning to educate your workforce
For more information on our services and how we can support your school, get in touch with our team on 0345 226 8393 or book your free consultation today using the button below.