Labour Government

As a small business owner, you may have questions about the impact of Labour’s election victory (or potential victory) on your operations. In this article, we will summarise what Labour has pledged to do and how it will affect you and your employees.

Labour plans to introduce some major reforms to the laws that protect workers’ rights. These are the most significant changes since 2010 and you need to be prepared for them.

Day one rights:

Labour has promised to remove qualifying periods for basic rights like unfair dismissal, sick pay and parental leave.

This means that as soon as someone starts working for you, they can get some benefits that they usually have to wait for. For example, they can take time off if they are ill or have a baby, and they can complain if you fire them unfairly.

This change could have a significant impact on Employment Law and could lead to more Employment Tribunal Claims. Employers should review their disciplinary procedures and probationary period clauses to make sure they are prepared for the possible changes. Professional HR Advice may also become essential for businesses of all sizes in the future.

Employment Status:

Labour wants to simplify the employment status by making everyone a worker. This will give all workers the same basic rights and protections from day one, such as Statutory Sick Pay, Holiday Pay, Parental Leave, and Unfair Dismissal.

This would affect employers who rely on the Gig Economy and flexible contracts. They would need to comply with the new rules or risk facing more Employment Tribunal Claims. Getting professional HR Advice may help them avoid legal issues.

Raising Wages:

Labour has also promised to introduce a single minimum wage for all workers regardless of age; make the Low Pay Commission consider the cost of living when setting rates; pay workers for travel time between multiple work sites; ensure fair pay for “sleep over” hours in sectors like social care; establish Fair Pay Agreements in adult social care; and outlaw unpaid internships unless they are part of an education/training course.

If you are a CQC Regulated Client, you may want to pay attention to the proposal of Fair Pay Agreements in adult social care, as they could affect your future workforce planning. Sapphire HR can help you navigate this challenge with our specialist CQC Regulated Package, which gives you access to expert advice from trusted advisors in the adult social care sector.

Sick Pay:

Labour has pledged to increase Statutory Sick Pay (SSP) and extend it to all workers, removing the waiting period. The SSP rate will be adjusted to reflect a fair proportion of earnings.

For small business owners, this means that managing employee absence effectively will be crucial to avoid the significant costs of employee absenteeism.

Therefore, having proper sickness absence and capability procedures in place will be essential.

Tips:

One of the pledges made by Labour is to ensure that hospitality workers get to keep all of their tips and have a say in how they are distributed.

This means that employers in the hospitality sector need to have transparent and accurate methods of tracking and allocating tips, and to invest in effective HRM Systems (such as Breathe HR) as soon as possible.

Flexible Working:

Labour has pledged to make flexible working arrangements the default from day one except

Labour also promises to make flexible working arrangements the default from day one, unless it is not reasonably feasible. Currently, all employees have the right to request flexible working arrangements from day one, but the details may change under a Labour Government. Employers who are unsure about what flexible working arrangements mean (or how they can be defined) should start to prepare adequate policies and procedures now.

Zero Hours Contracts and Fire and Rehire:

Labour wants to end the practices of one sided flexibility in zero-hours contracts and fire-and-rehire, which it sees as unfair and exploitative. It proposes to ban “one-sided” flexibility, where workers have no control over their hours or shifts, and to give workers who work regular hours for 12 weeks or more the right to a regular contract that reflects their actual hours. It also plans to ensure that workers receive reasonable notice and compensation for any changes or cancellations of their shifts or working time.

Additionally, Labour aims to improve the information and consultation procedures for workers affected by Fire and Rehire, by replacing the statutory Code of Practice that the current Government introduced with a stronger one. It also wants to adapt the unfair dismissal and redundancy legislation to protect workers from being fired for refusing to accept a worse contract.

Right to Switch Off:

A new right to disconnect and protection from remote surveillance are also part of Labour’s agenda. This was a policy that the Tories mocked Kier Starmer for following on a Friday night during the Election Campaign.

Trade Unions:

Labour also wants to empower trade unions by making it easier for them to access workplaces and gain recognition, by protecting their representatives from discrimination, and by requiring employers to inform their workers of their right to join a union in their contracts.

As part of this regulation, employers may need to examine their employment contracts and communicate to their workers their right to join a union during the first 100 days of a Labour Government’s term.

Conclusion:

To ensure that you are always informed of the latest developments in Employment Law, we will update you automatically as part of your subscription with Sapphire HR. We are closely monitoring the potential changes that may be introduced in 2024, and we are ready to assist you with any questions or concerns. You can reach us anytime on 0330 124 3732.

If you are not a subscriber to our Advice Service and you are reading this on our Blog at a later date, don’t miss this opportunity to get in touch with us today. We can help you prepare your business for any possible changes in the HR and Employment field that may come in 2024.