What Does the New Labour Government Mean for HR?
UK politics has undergone a significant change, with the latest election resulting in a landslide victory for the Labour Party after a 14-year period under the Conservative Party. In this blog, we address the key points that will affect the HR and Recruitment industry following Labour’s win, resulting in another busy year ahead for HR teams!
In The King’s speech delivered on 17th July 2024, His Majesty stated “My Government’s legislative programme will be mission led and based upon the principles of security, fairness and opportunity for all” which sets the tone for Labour’s planned approach to working rights.
The new Government will have a strong focus on improving working conditions in the UK, and Prime Minister Sir Keir Starmer plans to implement the following for all working people:
- Delivery of a genuine living wage that considers the cost of living and removes age bands.
- Making work more secure by improving opportunities for flexible working to fit in around school terms, and making it a day one right for all workers.
- Supporting working people by updating trade union legislation and removing unnecessary restrictions.
- Encouraging investment in industry skills and new technologies.
- Application of unfair dismissal rights from day 1 of employment.
- Banning zero hours contracts and entitling all workers to a contract that reflects the number of hours regularly worked (based on a 12-week reference period).
- Ending the unfair ‘fire and rehire’ tactics.
- Introducing statutory sick pay for all those earning below the lower-earnings level (LEL) and abolish waiting days.
- Strengthening rights for the self-employed, including the right to a written contract.
- Changing from the current three types of employment status (employee, worker, self-employed/contractor) to one single status – ‘worker’ (although Labour still plan to introduce this change, legal complexities have meant it will need to be re-visited in the future, read more).
- Introducing statutory bereavement leave.
- Introducing the ‘right to switch off’ for employees (this is likely to be implemented further down the road).
- Assessing the possibility for paid carers and parental leave.
- Gender, ethnicity and disability pay gap action plans, with large companies forced to implement them.
- Requiring large employers to produce menopause action plans.
- Introducing an English Devolution Bill to drive economic growth.
You can read more about the above and other key areas such as Labour’s plans to boost worker representation and improve equality in the workplace, in their ‘Plan To Make Work Pay Bill’.
Although the reforms will be welcomed by many, there are potential concerns for HR teams amidst the changes. HR Magazine have published a useful article highlighting the possible worries and the points that will need clarification from the new Government. It’s worth a read.
The complexity of IR35 is also an area that many want the new Labour Government to review as soon as possible. However, although Labour have previously indicated they would seek to simplify IR35 determinations, is simplifying it enough? There are calls for more to be done, particularly in relation to umbrella companies. Read more.
Our consultancy services are always on hand to advise, and to help you assess, design, and implement change. You don’t have to navigate this alone.
