How Could the UK’s New Labour Government Impact Employers in the Film & TV Industry?

On July 4, 2024 the UK elected a new Labour government, heralding an end to 14 years of Conservative leadership and a new era for UK politics.

In the run-up to the election, Labour was clear about its intention to reform UK employment law to “improve [workers’] terms and conditions and ensure protections at work are fit for the world today.”

While it remains to be seen which of its proposed policies will be passed into law, UK employers should be aware of the potential changes, many of which could have a substantial impact on the film and TV industry.

Single status of worker

In its New Deal for Working People, Labour set out its proposal to reform the UK’s employment status system.

Currently, UK law recognises three categories of employment status:

• Employed – where the crew member has an employment contract and works for a salary under the employer’s control and supervision.
• Self-employed – where the crew member is a contractor who is in business on their own account and provides their services independently.
• Worker – a hybrid status between employed and self-employed, where the crew member works under a contract to perform work or services personally for another party. This category typically includes freelancer and agency workers.

Labour has acknowledged that it can be difficult to determine which category an individual falls into, and therefore which rights and protections they are entitled to by law. As such, Labour intends to transition to a single status of worker and a simpler two-part framework, under which an individual is either a worker or self-employed.

Notably, Labour has not yet indicated any proposed changes to the tax status system, under which workers can be classified as either employed or self-employed depending on their unique circumstances.

Any change in this area would be significant, and Labour has stated that it will “consult in detail” on how it would differentiate between workers and the genuinely self-employed and how this simpler framework could properly capture the breadth of employment relationships in the UK. This consultation period could be lengthy, so any changes to worker status will likely take some time.

For film and TV employers, this is an area to watch, as the extension of full employment rights to a broader category of worker would have a significant impact on this largely freelance industry.

Likewise, any change in the types of individuals considered employed for tax purposes would have a significant impact on payroll budgets, with productions having to pay over national insurance, income tax and pension contributions. Other complications – such as sick pay, family leave and other benefits – could also arise.

Day one employment rights

Labour’s New Deal for Working People also sets out its intention to extend full employment rights to all workers from day one. Whether Labour intends to extend these rights to the broader category is currently unclear, but this would mean that all workers (not just employees) would be entitled to the basic rights of protection against unfair dismissal, parental leave and sick pay from their first day of employment. Currently, these rights extend only to employees, with protection from unfair dismissal taking effect only after two years of continuous employment.

Should these proposals become law, production companies would need to put processes in place to ensure that they are meeting their obligations from day one and factor the increased personnel costs into their budgets.

Labour have used the word 'worker' in their proposal for basic day one rights, implying that day one rights could apply to anyone who falls under the 'worker' category. While it is not yet known how 'worker' will be defined, this is indicative of the complexity of any review of employment statuses. The proposed changes are not clear cut and will impact each other, requiring a significant upheaval in employment law as we know it.

Insecure work

Labour has called for an end to what it calls “one-sided flexibility” with a campaign promise that all jobs should provide a baseline of security and flexibility. To do this, it has been indicated that all workers will have the right to a contract that reflects the number of hours that they regularly work over a 12-week reference period. Labour has also proposed giving workers a right to reasonable notice of any change in shifts or working time, with compensation proportionate to the notice given for any cancelled shift.

This would effectively ban what Labour refers to as “exploitative” zero-hour contracts (a type of employment contract under which the employer is not obliged to provide a minimum number of working hours to the employee).

It is not clear how this change would affect the film and TV industry, where individuals (such as dailies and supporting artists) are frequently engaged under one-off, short-term contracts. However, Labour has indicated that its plans “will not prevent employers from offering fixed-term contracts including seasonal work,” which suggests there may be some flexibility for certain industries.

If not, production companies may need to reassess their hiring practices, potentially shifting towards more permanent employment structures or justifying the need for freelance roles under stricter regulations. Simply looking to engage people on a self-employed basis may not be the answer as this may not reflect the reality of each working arrangement and could give rise to employment and tax liabilities.

In the case of supporting artists, looking to engage people on a self-employed basis may not be the answer as that may not reflect the reality of the working arrangement, exposing them to employment and tax liabilities.

Self-employed rights

Having dubbed itself “the party of the self-employed,” Labour has been vocal about its plans to strengthen their rights and protections, including by introducing the right to a written contract and greater health and safety protections, both of which would impact production processes.  

Labour has also announced plans to tackle late payments to ensure self-employed individuals are paid on time, which would put payroll processes under greater scrutiny and require larger companies to report on their payment practices.

Fair pay

The New Deal for Working People also set out Labour’s commitment to raising the minimum wage and ensuring that all workers, regardless of age, receive a living wage. Currently, the living wage only applies to employees aged 21 and over.

Should these changes become law, employers may need to revise their pay structures for entry-level positions, which could impact production budgets.

Other changes

Labour has also proposed a number of other changes which may affect the film and TV industry, including:

• Introducing a right for employees to “switch off” outside work hours;
• Strengthening collective bargaining rights, including introducing rights for trade unions to access workplaces for recruitment and organising purposes and requiring employers to inform new employees of their right to join a union;
• Ending the practice of “fire and rehire” (ie, where an employer dismisses an employee and re-engages them on less favourable) terms);
• Strengthening parental rights and rights for pregnant women;
• Banning unpaid internships; and
• Increasing the time limit within which employees can bring an employment tribunal claim from three months to six months.

Impact on productions

The UK’s new Labour government could bring significant changes for employers in the film and TV industry. With key industry bodies such as Bectu calling for increased government support for freelancers in light of the current slowdown, the focus on improving workers’ rights will likely be welcomed.

Labour made clear in the run-up to the election that it intends to act swiftly, and an Employment Rights Bill – which includes provisions relating to the rights of employees and other workers to request variations to particular terms and conditions of employment, including working hours, times and locations – was included in the King’s Speech on July 17. Production companies should ensure that they stay on top of any developments and factor any potential payroll and compliance costs into their budgets.

Production companies and agencies should also be mindful of the general shift towards greater rights for all workers. When engaging any individual to work on a film or TV production, it is good practice to be as open and transparent as possible about what the role involves so that the candidate can make an informed decision about whether it’s right for them.

This article is for guidance purposes only and should not be interpreted as legal advice. Productions should seek specialist legal advice on what any legal changes mean for their specific situation.