Tom Clarke is a Senior Associate at specialist employment law firm, Collingwood Legal. Tom outlines the potential impact of a new Prime Minister on employment rights.
Now that Andy Burnham has been confirmed as Prime Minister, for employers across the North East and beyond, attention now turns from speculation to substance: what does a Burnham government actually mean for the way you run your business, and what should you be doing about it?
At this stage nobody can say with certainty how a Burnham government would legislate. But several signals are already visible, and each carries practical implications worth thinking through.
Employment Rights Act 2025: continuity, not reversal
The Employment Rights Act, the most significant overhaul of UK employment law in a generation, already has significant momentum behind it and is being implemented in phases. Nothing in Burnham’s public statements suggests he would pause or unwind it. That means that the significant change to the law on unfair dismissal is set to stay, providing employees with full employment rights after six months of employment. Further changes such as those to Trade Union recognition and whistleblowing protections are also set to remain. Employers who have not yet reviewed their contracts, policies and processes in light of this should treat that as a priority.
Employer costs: national insurance and business rates
Burnham has said publicly that the 2024 increase to employer National Insurance contributions placed too heavy a burden on business, and has floated a cut to business rates for pubs and smaller premises-based businesses. Neither is confirmed policy, but both suggest a government attentive to cost pressures facing SMEs, alongside its commitment to strengthening workers’ rights. Here’s where Burnham’s approach is interesting; he has made clear that he believes strong employee protections create a productive workforce and a strong economy. This does not indicate any likelihood of recent developments being undone or watered down under his premiership.
Devolution and regional variation
Burnham’s platform places real weight on devolving employment support to regional mayoral authorities, with specific reference to the North East. Employers here may, over time, see more regionally tailored support around recruitment, training and workforce participation than has historically been the case, particularly those working closely with local authorities or publicly funded training routes.
What should employers do now?
The sensible approach is the one that applies whenever the political weather changes: don’t wait for certainty that may not arrive for months. Get contracts, policies and shift arrangements in good order in preparation for upcoming changes under the Employment Rights Act and keep a watching brief on National Insurance and business rates announcements as the new government’s first Budget takes shape.
We will continue to track developments as they unfold and will keep clients updated as the picture becomes clearer. If you would like to discuss how any of this may affect your business, please get in touch with our team.
Collingwood Legal is a specialist employment law firm and provides expert advice and training to organisations on all areas of employment law.
www.collingwoodlegal.com