The 4th July is fast approaching and as all political parties are hot on the campaign trail, many business owners will be wondering exactly what the Labour government business impact could potentially mean for them as employers. Niel Cope, CEO of award winning People Matters HR, has put together an overview of what the three main Political parties are pledging to change after the General Election.This guide is intended to give a summary, yet exercise a note of caution as things may change a little before 4th July, especially as the party manifestos have not yet been published in full. For now, all we can do is make educated guesses about how this Labour government business impact could affect employers. To prepare, consider reviewing HR packages that can help manage these changes effectively.
Labour
The Labour Party have voiced the most radical pledges to change employment law of the three parties and pledge to take this Bill to Parliament within 100 days of getting into power if they form a Government.
Reforming employment law status:
• There are currently three types of employment status: employees, workers and self employed, all of which have different rights. Labour plan to collate employees and worker in to worker – both with the same rights and protections.
Equality & Respect:
• Labour pledge to close gender, ethnicity and disability pay gaps; permit equal pay comparisons across employers where comparable work is carried out; and publication of ethnicity pay gap will be mandatory for firms with more than 250 staff.
• Labour will require employers to create and maintain workplaces and working conditions free from harassment, including by third parties.
Increasing wages:
• A plan to increase in National Minimum Wage to at least £10 per hour for all workers which will be continuously reviewed in line with the cost of living.
Unfair dismissal rights from day one:
Currently, you must be employed for two years to claim full Employment rights.
• Labour proposes day-one rights: Remove qualifying periods for basic rights like unfair dismissal, sick pay, and parental leave so they become day-one rights.
• Strengthen rights: strengthen existing rights and protections, including for pregnant workers, whistleblowers, workers made redundant, and workers subject to TUPE processes.
• Proposal to lift the cap on compensation for unfair dismissal.
Statutory sick pay from day one
• The pledge is that all workers and self- employed people will be paid SSP from day one of the absence. Including those currently excluded because of low pay.
Banning zero hours contracts
• Zero-hours contracts and contracts without a minimum number of guaranteed hours will be banned.
• Anyone working regular hours on a Zero hours contract for 12 weeks or more will have the right to a regular contract.
The right to “switch off”
• Workers will have the right to disconnect from work and not be contacted by their employer outside of working hours.
Banning fire and rehire
• This is the practice of dismissing employees who refuse to agree to contractual changes and offering to re-employ them on the new terms. Labour pledge to improve information and consultation procedures instead.
Tribunal claim time limits
Currently employees have three months (minus one day) to bring most claims to an employment tribunal. • Labour will extend limitation periods, potentially to six months (TBC).
Conservative Party Pledges
The Conservative Party have pledged to continue their current agenda as follows:
• Neonatal care leave and pay
• Reform of industrial action laws
• Back to Work Plan including proposed reform of fit notes
• Reform of umbrella company market
• Continue with National Disability Strategy
• Address definition of “sex” in Equality Act 2010
• Re-introduction of employment tribunal fees
• Reform of non-compete clauses • Proposed reform to TUPE.
Bills going through the last Parliament
Fertility Treatment is to be included into the Employment Rights Act 1996.
• Unpaid Trial Work Periods (Prohibition) Bill.
• Bullying and Respect at Work Bill.
• Paternity Leave (Bereavement) Act – Received Royal Assent on the last day of parliament.
Apprenticeships
• A Conservative Government would create 100,000 more apprenticeships.
• Introduce a Financial incentive for SME’s to recruit 16-18-year-old apprentices who need extra support, e.g. disadvantaged young people and those that don’t have level 2 in English and Maths.
• They Pledge to raise the minimum apprenticeship wage for 16-17-year olds.
• They will extend discounted or free travel passes for 16-17’s to make it apprenticeships a more attractive and financially viable option.
• They will scrap the “worst-performing” degrees.
National Service
• The Conservatives have pledged to introduce mandatory national service. • 18-year-olds will join the military for 12 months, or volunteer one weekend every month in the community. • No one will be sent to prison for refusing to take part in the programme
Liberal Democrats Pledges
The Lib Dems are focusing on a better start in life for every child. They are pledging the following to achieve this:
Giving all workers, including self-employed parents, a day-one right to parental leave and pay.
• All families up to a year of paid parental leave. Each parent will get six weeks of use-it-or-lose-it leave, with 46 weeks of parental leave to share between themselves as they choose.
• Doubling parental pay (after the initial six weeks) to £350 per week.
• Increasing paternity pay to 90% of earnings, with a cap for high earners.