Labour has many ambitious aims, and one of them is to make some of the most far reaching changes to the relationship between employers and their employees for generations.
This article aims to highlight the Labour Government’s potential quick wins, medium-term initiatives, and long-term aspirations in employment and HR policies. These changes, if implemented, will have significant implications for employers across various sectors.
But even so, the message to most employers is not to panic. A few may happen quickly, others will require legislation and the scrutiny of Parliament. Except where legislation has to be rushed through, most will take 18 months to get onto the statute books and become law.
Labour’s Plan to Make Work Pay
Labour’s detailed plan, which was part of their manifesto, includes over 60 pledges focused on enhancing employee rights and improving working conditions. Key proposals include:
- Single Worker Status: Unifying the rights of employees and workers, granting crucial rights like unfair dismissal from day one.
- Zero Hours Contracts: Addressing exploitative practices.
- Flexible Working: Will become the default, except where the employer can prove it is not reasonably feasible.
- Family-Friendly Rights: Expanding protections and benefits for working families.
- Repeal of Trade Union Act 2016: Reversing restrictions on union activities and membership.
A copy of the document can be found here: Make Work Pay
They further fleshed this out in the King’s Speech, with this accompanying document to explain their proposals: Briefing Notes
Quick Wins
There are some potential quick wins that don’t require extensive legislation. They include:
- National Minimum Wage: Removing the lower rate for 18 to 21-year-olds, and probably increasing overall wage rates.
- Employment Tribunal Claims: Extending the claim submission period from three to six months, and possibly extending early conciliation periods.
- Right to Disconnect: Introducing policies to support work-life balance, possibly starting with a voluntary code.
- Collective Grievances: Simplifying processes for grievances involving multiple employees.
Labour’s First 100 Days
Labour has committed to significant employment rights legislation within the first 100 days of office, which would mean, perhaps ambitiously, by 25th October.
- Equality Act Amendments: Enhancing protections against workplace harassment, including third-party harassment.
- Unfair Dismissal Rights: Making such dismissals unfair from day one of employment, with clearly defined probation periods for assessing employees.
- Zero Hours Contracts: Strengthening protections against exploitative contracts.
- Repealing 2016 Trade Union Bill: Reversing changes that impacted strike actions, union representation and activities.
- Flexible Working: Making flexible working the default unless impractical for the employer.
- Sick Pay: Removing the lower earnings limit and unpaid waiting days for Statutory Sick Pay (SSP).
- Further Equality Act Amendments and Equal Pay: Introducing new definitions and reporting requirements.
- Fire and Rehire: Implementing stronger provisions against this practice.
- Whistle-blower Protection: Enhancing protections, particularly for those reporting sexual harassment.
Labour’s Long-term Aspirations
Several complex issues may require extensive consultations and longer implementation periods:
- Single Worker Status: Harmonising employment rights across various worker categories.
- Family-Friendly Leave: Creating paid carers leave, and broadening eligibility for other types of leave.
- AI and Workplace Monitoring: Addressing the impacts of AI on employment practices.
- Large Organisations: Introducing new reporting requirements and action plans for gender, disability, and ethnicity pay gaps.
- Strengthening Redundancy Rights: Preventing practices that avoid collective redundancy consultations.
- Voice at Work: Enhancing union representation and worker rights.
- New Enforcement Body for Worker Rights: Creating a single body to proactively enforce worker rights.
- Safer Workplaces: Reviewing health and safety regulations.
Action Plans for Employers
To prepare for these changes, small to medium-sized employers should:
- Keep up to date with the changes: Our clients are properly briefed on each new law and regulation.
- Train Managers: Ensure understanding of new legislation, including holiday pay rules, carers leave, and paternity rights.
- Employee Training: Educate staff on harassment, bullying, and dignity at work to meet new preventative measures.
- Budget for Wage Increases: Prepare for potential increases in the National Minimum Wage, particularly for younger employees.
- Update Handbooks and Policies: Revise policies on sickness, redundancy, pay, and family-friendly rights. Ensure contracts are up-to-date with new requirements.
- Risk Assessments: Include considerations for preventing sexual harassment and other workplace risks.
- Improve Recruitment and Induction: Enhance processes to reduce the likelihood of short-service dismissals and ensure effective onboarding.
Conclusion
As the Labour Government’s plans unfold, staying informed and proactive is crucial. Employers must be prepared to adapt to new regulations, and support their workforce through these transitions.
We hold regular webinars which address changes to the law as they unfold, whether through legislation or through the Courts. See our latest webinar on this very subject.
We run both public and in-house training on people management skills on a raft of issues from delivering bad news or having difficult conversations through to performance management, investigation skills or dignity at work training for both Managers and employees.
BackupHR is here to assist with the necessary changes, providing guidance, training, contractual documentation and support to navigate the evolving HR landscape.
The guidance provided in this article is just that – guidance. Before taking any action, make sure that you know what you are doing, or call an expert for specific advice.
