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Photo by Kristina Gadeikyte on Unsplash

This week, the government plans to scrap a proposal that would have allowed employees to ignore work-related messages outside of office hours.

The 'right to switch off' policy, a key pledge in Sir Keir Starmer's promise of a 'new deal for working people,' was designed to benefit workers. However, it is now being abandoned to ease pressure on businesses preparing for tax increases set to take effect next month, following Rachel Reeves' Budget announcement last autumn.

'Right to Switch Off' Dropped

Labour promised to follow the lead of countries like Belgium, Ireland, and France, where employees can ignore after-hours emails, texts, and calls without worrying about consequences. The intention was to introduce the policy after the rise in working from home to keep houses from becoming '24/7 offices.'

On 4th March, ministers will announce that the policy has been removed from the Employment Rights Bill when they introduce several revisions. Though the bill moving through parliament didn't include it, the government had promised to make it happen later.

Business Secretary Jonathan Reynolds and Chancellor Rachel Reeves decided based on fears that the provision would overly strain businesses. Reeves aims to improve business morale and economic expansion after her October budget, which increased taxes and caused British business confidence to plummet.

Tax Concerns Prompt Policy Reversal

'The right to switch off is dead. We have to lower business compliance costs as much as possible,' a government source told The Times. 'Growth that puts money in people's pockets is the number-one priority of this government's "plan for change". That means making Britain the best country in the world in which to do business — and a key part of that is removing unnecessary barriers.'

Businesses had already voiced their concerns about Labour's 'New Deal for Working People' being pushed by Deputy PM Angela Rayner when they were in opposition, warning it would create too much bureaucracy for companies and impede economic expansion.

The initial idea was already changed to 'Labour's plan to make work pay' in May, and a promise to end zero-hours contracts was altered to ending 'exploitative' zero-hours contracts, per The National. Rayner has given her approval, but her actual backing remains unclear.

As another agreement with business leaders, the bill will feature a 'lighter touch' on probation periods. The government will likewise show that it favours probation periods of nine months, exceeding the six months that union leaders wanted.

Zero-Hour Contracts And Dismissal Protections

Employers see probation as crucial protection, allowing them to hire people with the knowledge they can easily let them go if they don't perform. Last autumn, more than 850 firms participated in a review of government ideas for changing employment rights, but large-scale changes are anticipated to wait until autumn 2026.

All companies will experience financial strain due to the upcoming National Minimum Wage and Employer National Insurance contribution increases. Despite this, several of Labour's significant employment reforms will proceed.

Zero-hour contracts will be limited, and day-one protection against unfair dismissal will stay, unlike the current system, in which staff must wait two years to file Employment Tribunal claims.

They will also introduce the right to bereavement, paternity, and parental leave from the first day of employment. 'It's important that our changes to the Employment Rights Bill work for businesses,' a government source said.