The Future of Business Law – Predictions for 2025: How Labour’s Victory Will Shape Your Business

With Labour’s recent election win, significant shifts in business law are anticipated. This article explores the expected changes across employment, commercial property, and corporate law, featuring expert insights from Wolferstans LLP partners on how businesses can prepare for the evolving legal landscape.

Employment Law: Preparing for Major Reforms

Labour's "New Deal for Working People" proposes transformative changes in employment law. Key anticipated reforms include:

• Zero-Hour Contracts
  Labour plans to ban "exploitative" zero-hour contracts. This change will affect many businesses that use these contracts for flexible staffing.
• Fire and Re-Hire Practices
  Aimed at curbing the practice of terminating employees only to rehire them on less favourable terms. This will require a more transparent process for making changes to employment contracts.
• Day One Rights
  Extending basic employment rights such as parental leave and sick pay from the first day of employment and most significantly, the right to claim unfair dismissal (currently employees require two years’ service to pursue a claim).
• Enhanced Union Rights
  Increased access for trade unions and mandatory information about union membership.
• Minimum Wage Adjustments
  Moving towards a genuine living wage, removing age-related bands.
• Stronger Equal Pay and Anti-Discrimination Measures
  Enhanced protections and mandatory reporting for gender and ethnicity pay gaps, along with protections against various forms of discrimination.
• Single Worker Status
  Removal of the current “worker status” so that individuals either have full employment rights (and taxable status) or they are self-employed.

James Twine, Employment Lawyer notes, "Employers must start reviewing their contracts, policies and staffing structures now. With these changes, it's crucial to align your practices and plans for the future with the new rights and prepare for increased regulatory scrutiny."

Commercial Property: Navigating New Legislation

Recent updates in commercial property law include:

• Renters' Rights Bill
  Although focused on residential properties, the bill’s impact on commercial property owners with mixed portfolios cannot be ignored. Key provisions include ending “no fault” evictions and strengthening tenants’ rights.
• Leasehold and Commonhold Reform
  Plans to restrict new leasehold flat sales and regulate ground rents will impact property management and investment strategies.
• Green Leases
  As environmental standards become stricter, commercial leases will need to incorporate provisions for sustainability and energy efficiency improvements.

Deborah Black, Commercial Property Lawyer, emphasises, “Commercial property owners should integrate green lease provisions and stay updated on legislative changes that may affect their residential letting portfolios. This will not only ensure compliance but also enhance the sustainability and future value of their property portfolios.”

Corporate and Commercial Law: Adapting to New Regulations

In corporate law, the focus is on:

• Enhanced ID Requirements
  Stricter identification measures for company directors are now in effect, aiming to improve transparency and reduce fraud.
• Corporation Tax
  The rate of corporation tax is capped at 25% for the duration of the current Parliament, offering some predictability for business planning.

Joshua Chauhan, Corporate and Commercial Lawyer, advises, “Businesses should adapt their compliance strategies to meet new ID requirements and optimise their tax planning under the current corporation tax cap.

Aside from the specific measures already introduced, Labour’s manifesto pledges to create ‘A new partnership with business to boost growth everywhere’. It will be interesting to see how that aspiration crystallises into specific economic and commercial measures over the course of the next few years.”

Key Preparation Tips for Businesses

To navigate these anticipated changes, businesses should consider the following steps:

• Employment Law
  Review and update employment contracts, review current staffing structures and employee’s performance, engage with HR and legal advisors, and implement new compliance policies.
• Commercial Property
  Monitor legislative developments, integrate green lease provisions, and stay informed about tenant rights reforms.
• Corporate Law
  Ensure compliance with new identification requirements and review business strategies in light of the corporation tax cap.

Labour’s legislative agenda will bring notable changes across various sectors. Staying informed and proactive will be essential for businesses to adapt successfully. For expert guidance tailored to your specific needs, contact our experts today on 01752 292201 or clientservices@wolferstans.com.