Andy Burnham's potential impact on employment law

As speculation grows about Andy Burnham’s future role in the Labour Party following his success in the Makerfield by-election, the discourse surrounding employment law is intensifying. Lawyers from Constantine Law indicate that the ongoing government consultation on zero-hours and agency worker reforms may unveil the approach a potential Burnham administration would take towards employment law and labour market regulation.

Analysts suggest that Burnham’s rise could signal a leftward shift within the Labour Party, initiating a more interventionist stance on employment regulations. This shift would require a careful balance between enhancing workers' rights and fostering economic growth, a critical challenge for any future administration. The tension lies in the need to promote a pro-worker agenda while ensuring flexibility, a characteristic traditionally associated with the UK's labour market.

Burnham’s administration would likely face the crucial task of reconciling stalled growth with increased regulatory measures, like those outlined in the Employment Rights Act 2025. The reforms include shortening the qualifying period for unfair dismissal claims from two years to six months and lifting the cap on unfair dismissal compensation awards. Such changes heighten litigation risks for employers and exacerbate the pressure on the Employment Tribunal system already strained by rising workloads.

However, the most significant transformations might stem from the government’s consultation on zero-hours contracts and agency worker protections. These discussions are poised to alter workforce flexibility across numerous sectors, and previous assessments have labelled them as some of the most substantial and costly reforms for businesses.

As John Hayes, Managing Partner at Constantine Law, notes, “The decisions taken on zero-hours reform will tell employers a great deal about the direction of travel under any future Burnham administration.” Key points of consultation include the reference periods for guaranteed hours, qualification criteria for guaranteed-hours offers, minimum shift notice requirements, and compensation for cancelled or changed shifts.

The results of these consultations will undoubtedly have wide-reaching effects on industries reliant on flexible staffing models, such as healthcare, hospitality, logistics, agriculture, and agency staffing. Constantine Law emphasises that labour market flexibility has been a significant economic strength for the UK, contributing to lower youth unemployment levels in comparison with other European nations.

Recent studies led by Alan Milburn draw attention to concerning trends of increasing youth disconnection from education and work, further underscoring the necessity of policies aimed at encouraging labour market participation. As Hayes articulately states, “The interests of employers and workers are often more aligned than political debates suggest.” A flexible labour market not only supports businesses but creates pathways for younger workers, part-timers, and those returning to the workforce, reinforcing the need for policies that nurture these opportunities without imposing restrictive regulations.

Ultimately, the government’s resolutions on zero-hours reforms will likely serve as an early indicator of how extensive Burnham's administration would pursue a pro-worker and interventionist model. Hayes conveys a sense of urgency, stating that the consultation is a “litmus test” revealing whether the UK will choose to prioritise labour market flexibility or lean towards a more regulated, left-oriented approach to employment law.