After the recent election result with an historic win for Labour, what will our new government mean for your business?
As my colleague, Diane McTavish, described in her article last month, Labour made it clear, in their manifesto ‘Change’, of their intention to introduce a raft of new employment legislation within their first 100 days of government and, with the extension of parliament to the end of July, it looks like this is underway.
As they look to strengthen workers’ rights, Labour proposals cover many different elements within the workplace. The HR Dept has already explored some of their key suggestions in our white paper, ones which are likely to present the biggest changes for small and medium sized businesses.
But to summarise what businesses can expect from the ‘Plan to make work pay: Delivering a new deal for working people’:
There will likely be increases in employee costs through raises to national minimum wage and sick pay being paid from the first day of absence.
There will be changes to employment status and stopping what is described as “exploitative” zero-hour contracts.
The right to unfair dismissal protection from day one will be granted, rather than the current two years, and employees will have longer to bring a claim.
It is anticipated that a policy will be released relating to an employee’s right to switch off.
There will be more union involvement across the board and a statutory body to investigate firms.
Although not all proposed policies will take effect immediately, and the government will consult on some measures (so some may be changed or discarded), we do need to be prepared for what does come into place and when. Key to this is keeping abreast of the news, keeping employment contracts and policies/Handbooks up-to-date and making sure staff, and particularly managers, understand the changes through training and effective communication.
Essentially, the tone of employment law will be markedly different in the coming years, with a balance of power swinging more in favour of employees. As well as the practicalities of this, it is important to be mentally prepared, as it will influence your recruitment practices, employee relations and workflows.
If you have been following The HR Dept updates in recent weeks, you will know that we have been preparing in advance of the election for potential outcomes and we are ready and waiting to help you futureproof your business, keeping you ahead of any changes.
Please get in touch to discuss support on the above or any other HR issues or follow the latest updates on our dedicated election hub.
Alison Schreiber, HR Dept – Durham & Newcastle South. Call 01325 526 036 or email: alison.schreiber@hrdept.co.uk