Paul McGowan, Managing Partner at specialist employment lawyer at Collingwood Legal, examines this question.
The press has had a field day reporting on Angela Rayner’s personal affairs and tax arrangements following disclosure of information that suggested she failed to pay the appropriate tax on a property she purchased.
She has since resigned, following a finding that she breached strict ministerial rules which placed a duty on her to meet the “highest possible standards of proper conduct”.
As part of Labour’s election campaign and manifesto commitments they have pledged to make numerous changes to employment law rights including banning fire and rehire, increasing union rights and day 1 sick pay and unfair dismissal rights for all employees.
Ms Rayner has been a key driver for the Employment Rights Bill (ERB). She was vocal in her support for workers and committed to “make work pay”. There remains divided opinion on the benefits of ERB between the unions, who reflect and campaign for the workers it represents, and the business/employer sector, a majority of whom fear that the introduction of numerous new employment rights under the ERB will deter economic growth and will impact on employers’ willingness to recruit in what is already a challenging economic climate where businesses are struggling to adjust to the impact of national minimum wage increases and increases in Employer NI costs.
With unemployment rising, there is reported concern in the business community that the ERB may exacerbate this further, in turn contributing further to economic instability. However, unions are focused on minimising the impact of Ms Rayner’s resignation, by responding promptly and publicly to urge the government not to ‘water down’ the ERB. In response, it has been reported that the new Business Secretary, Peter Kyle, has reassured unions that there will be no impact on the ERB. Further, Bridget Phillipson, the favourite to become the new Deputy PM (at the time of preparing this article) has also said the ERB will be delivered “in full”. Given the ERB was a significant part of Labour’s election campaign, the fact it is quite far progressed in its passage through Parliament and the Labour Party’s needs for the support of the trade union movement, it may be difficult for Labour to appear to renege on or seek to significantly change key elements of the ERB at this late stage, not least at a point where there is a media spotlight on the party.
With economic challenges and the Labour government proving unpopular (and ranking 15% behind Reform in a poll for the i Paper from late August) the question may be whether the government will follow through with all of its planned changes to employment law to keep to its manifesto pledges and to appease the trade unions or, will it reflect and change its approach recognising the risk of further reducing growth and to appease the business community?
From our perspective as employment lawyers, we have, so far, seen a government committed to follow through with its pledge to fundamentally change and increase employment rights. The government’s own economic analysis suggests that the ERB will introduce a direct cost to UK businesses of up to £8 billion. Once enacted, the economic impact of the ERB will be better determined.
One point is already clear, employers need to be informed and prepared for what will be required of them to comply with a raft of new employment rights.
As expert employment lawyers, we have been reviewing this subject closely and carefully and can assist employers with how best to navigate the enactment of the ERB whilst also balancing other key business objectives.
We are regularly updating our clients on developments and if this is of interest, please register for our updates through our website: www.collingwoodlegal.com