Labour's planned changes to Employment Law
With the Labour Party now in power we are set for some huge changes in UK employment law. These won’t come into place until Autumn (at the earliest) but it’s key to be ahead of them.
Whether you’re an employer, employee, or just someone curious about the changes this brings, hopefully I can help explain some of the proposed changes and the impact!
1. Increase in Minimum Wage
Labour is set to introduce a significant hike in the minimum wage, aiming for a real living wage that reflects the cost of living. This move is designed to boost the income of the lowest-paid workers and reduce in-work poverty, whilst removing the age bands. All good things - but employers will need to start budgeting for this. now As a first step start planning to pay all staff the highest level of the real living wage.
2. End to Zero-Hour Contracts
Zero-hour contracts aren’t a bad thing if done properly with both parties in favour. However there are cases of workers being exploited and Labour plan to ensure all jobs provide security. They plan to do this by ensuring the contract reflects the number of hours regularly worked.
More certainty for employees also means more certainty for businesses but you need to plan carefully to ensure you aren’t over resourced. Ensure you have a reliable means of recording time over the course of a year to work out the minimum base hours you would employ an ex zero hours worker on. Anything over and above their contract can be reflected in overtime. So maybe make sure you have an overtime policy too.
3. Day 1 Rights for unfair dismissal
This in my opinion is a biggie! Companies will need to follow the same process with someone with 8 months service as they do with someone with 8 years service. Things to consider in preparation for this are ensuring you have probationary periods in your contract and ensuring anyone under 2 years service currently who is not performing is fairly dismissed.
4. Strengthening Workers’ Rights to Unionize
The manifesto places a strong emphasis on bolstering trade unions, ensuring workers have a louder voice in negotiating wages and working conditions.
I’m not sure we will suddenly see a huge increase in Unions in previous un-unionized workplaces but it’s a very good reminder to ensure you are following processes fairly and correctly.
5. Workplace Equality and Anti-Discrimination Measures
Labour aims to tackle inequality head-on by enforcing stricter anti-discrimination laws and ensuring equal pay for equal work. This includes more rights for maternity, menopause action plans and ensuring flexible working is a genuine option.
6. Right to Switch Off
Gone are the days of not checking emails after you leave work or whilst on holiday! But Labour wants to bring these back.
How exactly this will be enforced is not clear but it’s likely to give workers additional protection around protecting their work life balance. Get ahead of this and think about how you can encourage workers to disconnect now. Initiatives such as no emails between 7 and 7, banning work Whatsapp etc are all things to be considered.
Preparing for the Changes
Whilst some of these changes seem daunting (to me at least!) it’s also an opportunity to improve. Here’s how you can get ready:
Stay Informed: Keep up with updates on new legislation to understand your rights and responsibilities.
Plan Ahead: Start adjusting their business plans to accommodate higher wages and secure contracts.
Embrace Flexibility: Both employers and employees should be open to negotiating and adapting to new working conditions.
In Conclusion
The Labour government’s manifesto promises sweeping changes to employment law, aimed at creating a fairer, more equitable workplace for everyone. While these changes might require some adjustments, they also bring the promise of a brighter, more stable future with higher levels of engagement and hopefully productivity and profit!