How Labour’s Pledges on Employment Could Affect You

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Thursday, July 25, 2024

The recent general election has ushered in a new era with the Labour Party’s victory, and it’s set to bring some big changes to the UK’s employment landscape. 

Labour’s manifesto is packed with promises to beef up workers’ rights, protections, and benefits. So, what’s on the table, and more importantly, what could it mean for you?

Let’s break it down.

Make the Minimum Wage a Genuine Living Wage

First up, Labour’s talking about giving the minimum wage a serious boost, turning it into what they’re calling a ‘genuine living wage’. Now, this could be a game-changer if you’re working a minimum-wage job. 

Imagine being able to cover your basic needs without constantly worrying about making ends meet. It could mean the difference between scraping by and having a bit left over at the end of the month.

But let’s flip the coin. 

You might feel a bit nervous if you’re running a business, especially a small one. Higher wages mean higher costs, and you might wonder how to balance the books. You could be looking at raising prices, cutting hours, or even rethinking your staffing. It’s a tricky balance, for sure.

Simplify Employment Status Categories

Next up, Labour’s planning to tackle the muddy waters of employment status and those controversial zero-hours contracts. 

This could be big news if you’re currently juggling gig work or never know how many hours you’ll be working from week to week. We’re talking about the potential for more stable hours, better job security, and clearer rights. 

No more wondering if you’re technically an employee or self-employed — Labour wants to clarify these lines.

For the self-employed among us, this could mean changes in how you’re classified for tax purposes or what benefits you’re eligible for. It’s worth watching this one if you’re your own boss.

And if you’re an employer who relies on flexible contracts? 

You might need to put on your thinking cap. This could mean restructuring how you hire and schedule your workforce. It might be a headache in the short term, but it could lead to a more stable, committed workforce in the long run.

Make Unfair Dismissal a Day-One Right for Employees

Labour wants to make unfair dismissal protection a right from your first job day. If you’re starting a new role, this could give you some serious peace of mind. No more walking on eggshells for the first two years, wondering if you could be let go at the drop of a hat.

For employers, you’ll need to dot your i’s and cross your t’s when hiring and firing. It’s all about being fair and transparent from day one. 

You might spend more time on robust hiring processes and clear performance management, but hey, that could lead to better hires and a more productive team in the long run.

Establish a New Authority to Enforce Worker Protections

Labour’s not just talking about new rights — they want to set up a whole new authority to enforce these rights. If you’ve ever felt your workplace rights were more theoretical than practical, this could be the backup you’ve been waiting for.

For employees, this could mean having somewhere to turn when things go wrong at work without immediately jumping to an expensive legal battle. And if you’re a union rep, you might have some extra muscle behind you when advocating for workers.

Employers, you might see more frequent check-ins or audits to make sure you’re playing by the rules. It might feel like extra red tape, but it could also help create a fairer playing field where everyone’s following the same rulebook.

Conclusion

Labour’s key employment pledges are set to change the UK’s employment landscape significantly. 

Staying informed about these changes is crucial for both workers and employers. If you need assistance navigating the new employment laws or are looking for a new job, we’re here to help. 

Visit our contact page for more information.

 

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