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01798 890 021With the recent landslide election results and the change in government, naturally here at Metro HR we’ve been thinking about the inevitable changes afoot in terms of HR and specifically, employment rights.
Within their first 100 days in office, Labour will be introducing some new legislation in Parliament, the Employment Rights Bill, which they’re calling their New Deal for Working People. The bill is in recognition of the difficulties many people are facing around securing jobs with wages they can raise their families on, and the struggles that businesses are facing around retaining the right people they need to grow.
In their own words, ‘it’s a plan to make work pay’, Labour’s bid to boost wages, make work more secure and support working people to thrive. They pledge to deliver a genuine living wage, ban ‘exploitative’ zero-hour contracts and end the cycle for businesses of firing and rehiring. The full manifesto can be viewed here.
There will be a raft of changes that come along with this, although it’s important to note that not all of them will be implementable within the first 100 days. This is due to some new legislation which will need to be passed first.
However, we can certainly expect to see some changes take place between now and the end of September. You’ll find below a helpful breakdown of what is likely to be implemented first, and how the changes might be staggered across Labour’s first year in government.
You’ll also find some suggested actions to begin taking in preparation for these shifts.
It’s an exciting, albeit uncertain time and we are sure many business owners will be worrying about the cost implications of some of these things – but at Metro HR, we’re committed to staying on top of current laws and regulations and busting through the jargon, rules and guidance, so that we can continue to provide the very best in HR support to small and medium sized businesses trying to navigate the changes.
Labour have pledged to ‘hit the ground running’ with the introduction of new legislation in Parliament within 100 days of their entering government. This will facilitate the implementation of many of the proposals laid out in their New Deal manifesto.
Labour have also pledged to consult with businesses, trade unions and civil society to input on how best to put this into place. It’s likely therefore that the legislation will be draft only by the end of the first 100 days.
As a means to enforce workers’ rights, Labour have pledged to create a Single Enforcement Body (SEB). This is in acknowledgement of the confusion, difficulty and lack of coordination that has come from the multiple different enforcement bodies currently in place.
With an SEB in place, businesses should expect to receive better support, with a ‘recognisable single brand’ so they know exactly where to go for help. The SEB will have Trade Union and TUC representation, with ‘the powers to undertake targeted and proactive enforcement’ and ‘bring civil proceedings to upholding employment rights’.
Labour have highlighted this as one of the action items they can move quickly on, and it’s possible too that we’ll see a merger of the current enforcement bodies in place.
A key part of Labour’s New Deal manifesto is around ensuring a living wage for workers. One of the first items they’ll implement in this regard is to remove the age restrictions around minimum wage, with an immediate rise to £10 per hour minimum wage for all workers, not just those aged between 18 – 20.
Once this is in place, Labour will work to review a real living wage for workers.
In their New Deal manifesto, Labour examines how the rate of which people are moving jobs has declined, due to the lengthy wait for basic employment rights (which is two years of service to receive full unfair dismissal rights and less time for other benefits such as sick pay and parental leave). For workers, this means they may stay in the wrong employment for longer than they might otherwise, and aren’t able to access pay increases. For businesses, they may not be able to hire the best workers, as they’re tied up in other employment.
Moving forward, all employment rights are to be made available to workers from ‘day one’ of their employment, including sick pay, parental leave and protection from unfair dismissal.
Labour have emphasised in their New Deal manifesto that this will not prevent ‘fair dismissal’ and that probationary periods will have a special status here, provided they have fair and transparent rules and processes.
For businesses, it’s suggested that you start to create a robust probation and performance process, along with supporting documents ready to share with new starters. In the event of issues, face to face meetings must be held, support must be offered and dismissal should be an absolute last resort.
Equal pay is another key topic in Labour’s New Deal manifesto, with the pledge to tackle the gender pay gap, and also disability and ethnicity pay gaps.
Labour plans to put in place measures to ensure that outsourcing services can no longer be used by employers to avoid offering equal pay.
One of the first measures to be implemented in the first 100 days will be around pay gap reporting. In particular, large firms of 250+ employees will be required to develop, publish and implement action plans to close their gender pay gap. Outsourced workers must be included in the ratio reporting.
There will also be mandatory reporting and publication of ethnicity and disability pay gaps.
For businesses, it’s suggested to begin reviewing the pay scale across your organisation and start developing an action plan for closing any pay gaps where applicable.
In their New Deal manifesto, Labour recognises that thousands of women are struggling at work due to the lack of support around menopausal symptoms.
Labour pledges to prioritise the rights of women in the workplace, including their wellbeing, which leads to increased growth and productivity (you can see an excellent example of what this looks like in practice in our blog, ‘Be More Ethos’ here).
Large firms of 250+ employees will be required to produce Menopause Action Plans, setting out the support they will provide for their employees.
For smaller employers, guidance will be published on measures including uniform, temperature, the recording of menopause-related absence and flexible-working.
As a suggested action for businesses, begin to consider creating action and support plans for employees facing Menopause.
Employment Tribunals are often the best route for complex cases or contract disputes, helping to resolve disputes at a lower cost than civil courts.
Employment Tribunals are currently arbitrarily restricted by a series of ‘arcane rules’ on enforcement of fines and constraints on when claimants can begin proceedings. All of this is leading to delays in moving cases through the Tribunal system and placing more burden on the civil courts.
Labour has pledged to bring Employment Tribunals up to standard, including further digitising the service and improving and strengthening enforcement to help lead to quicker, more effective resolutions.
They also plan to increase the time limit within which employees can bring a claim from three months to six months. This will help allow more time for internal procedures to be completed and more time for claimants to raise funds.
One of the areas where the most changes are anticipated is around Trade Unions, and ensuring that workers are able to organise and work together effectively. Labour highlights that the existing framework has a number of inefficiencies that work against enabling negotiation and cooperation in industrial relations.
Much of Labour’s early work in this area will be to reduce red tape and restrictions that work against Trade Unions core role of negotiation and dispute resolution. This will include:
Other measures will be to implement and allow secure electronic and workplace ballots (statutory trade union ballots are currently only allowed to be made by post). Labour will remove the rule that unions must show that at least 50% of workers support a claim before a process has begun.
There will be a duty on employers to inform all new employees of their right to join a union, and to inform all staff on a regular basis. In addition, this is required to be part of the written statement of particulars given to all new starters. For businesses, it’s suggested to start putting this into contracts now in preparation for this requirement.
Measures will be introduced to ensure reasonable access for Trade Unions within workplaces, that allows officials to meet, represent, recruit and organise members – provided they give appropriate notice and comply with reasonable requests of the employer.
In conclusion, the Labour government’s New Deal for Working People signifies a significant shift in employment laws and regulations, reshaping the landscape of workers’ rights and business practices in the UK.
The introduction of the Employment Rights Bill aims to create a fairer, more equitable workplace, addressing critical issues such as job security, fair wages, and the elimination of exploitative practices. The creation of a Single Enforcement Body, coupled with the establishment of a Fair Work Standard, underscores Labour’s commitment to enforce these changes effectively and ensure compliance.
As these changes roll out, businesses must prepare to adapt to new requirements, such as implementing action plans to address pay gaps, supporting employees through initiatives like Menopause Action Plans, and ensuring robust procedures for performance management and dismissal.
While the immediate rise to a £10 per hour minimum wage and the implementation of Day One Rights mark significant steps forward, the long-term impact will depend on the successful integration of these regulations within existing business frameworks.
Whilst there’s plenty to come over the next 100 days, some of the biggest shifts and changes are likely to come later on, once the new legislation has successfully been put in place.
There’s some significant changes on the horizon, including the following:
At Metro HR, we remain dedicated to guiding our clients through these transitions, ensuring they stay compliant and continue to thrive under the new regulatory environment.
To discuss further how we can support your business over the next 100 days and beyond, why not book a call with us to explore what might be possible.
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