The Chancellor, Rachel Reeves, led her Spring Statement in Parliament with four proud statements: inflation is down, borrowing is down, living standards are up and the economy is growing.
Among the important changes, dismissal for taking part in protected industrial action is now “automatically unfair”, removing the previous 12-week limit for claiming unfair dismissal and extending it through the whole period of industrial action.
In its election manifesto, Labour promised that it would remove the age bands on the minimum wage rates which currently see a worker aged 21 and over earning £12.21 per hour while an 18-year-old colleague is paid £10 per hour.
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Labour put change at the heart of their election campaign and the new number 10 has promised to enhance existing staff rights, as well as change the bulk of HR and Health & Safety legislation currently in place.
And with their commitment to introducing new laws to Parliament within 100 days, the countdown is on…
What did the King say about new employment rights?
Broadcast live from the House of Lords on Wednesday 17th July, King Charles III spoke of Labour’s plans to create “a new deal for working people”.
He added that the new government would “ban exploitative practices and enhance employment rights”.
In the King’s speech, we heard that we could expect not one but two employment law bills. This includes a new Employment Rights Bill and a draft Equality (Race and Disability) Bill. For the latter, Labour will publish legislation on race equality to “enshrine the full right to equal pay in law”.
What are the key law areas we should be aware of as an HR team?
Full details of the new Employment Bill have yet to be unveiled. However, we expect it to cover most if not all of :
This includes:
Giving employment rights to staff from day one
Making flexible working the “default”
Banning “exploitative” zero-hour contracts
Giving employees the right to disconnect
Strengthening existing employment rights
Increasing statutory sick pay (SSP) and making it available to everyone
Giving self-employed people the right to a written contract
Clamping down on “fire and rehire” practices
Removing the current distinction between employees and workers
And much more…
You can read the full list of Labour’s HR and Health & Safety pledges .
Is pay changing?
Amongst their long list of reforms, Labour promises to make big changes to statutory payments, like…
Removing national minimum wage bandings and creating one rate for all regardless of age.
Increasing sick pay and removing the three day waiting period.
Giving hospitality staff the right to allocate their own tips.
Watch our panel of employment law experts answer this question in more detail in our recent Q&A session:
What do Labour’s changes mean for your policies, processes and contracts?
With the promise of radical change on the horizon, you’ll need to be proactive in updating your processes and documentation in line with new laws.
Labour has promised to remove qualifying periods for unfair dismissal, sick pay, parental leave and more. Meaning, employees will have certain protections from day one. So, you would need to review your existing policies to make sure they align with updated rules.
Larger businesses will also have new obligations under Labour’s plans.
If you employ over 250 members of staff, the new government has pledged to make it a legal requirement for you to publish ethnicity and disability pay gap reports. They also want to make it mandatory for larger businesses to have written menopause action plans.
But whether you’re a large, medium or small business, Labour’s plans for reform mean that all businesses will need to review their documentation.
What are Labour’s plans for health & safety at work?
Labour has pledged to bring change for health & safety in workplaces and do more to support employees experiencing mental health issues.
They’ve promised to recruit an extra 8,500 mental health workers and boost the support available to employees who are dealing with depression and anxiety.
Watch the panel address this important issue:
What’s the timeframe for Labour’s changes and first on the list?
Under the 100-day commitment, we’re expecting Labour to present new laws to Parliament until late October 2024.
Because some of Labour’s pledges involve fundamental changes to employee rights, they would have to carry out a 12-week consultation prior to them becoming official laws.
In Labour’s manifesto, they highlight a few areas of employment law that they intend to look at first, including removing the lower earnings limit on statutory sick pay. This would mean those on the lowest incomes will still be able to receive a minimum level of pay if they’re too sick to work.
With Labour’s self-imposed deadline to start putting change in motion, now’s the time for you to look at taking the appropriate next steps to stay safe.
Watch the full Q&A to unpack new employment laws with the experts
It’s tricky and complicated navigating major employment law changes.
So to make sure you’ve got answers to your pressing questions, watch Peninsula’s panel of HR experts address the biggest concerns for your business in the full live Q&A session.
Catch the full Q&A session on demand
Watch the full session with our panel of employment law experts as they unpack what a new government means for your HR and Health & Safety and how you can prepare.
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