Labour's Plan to Make Work Pay

Labour’s Plan to Make Work Pay covered an extensive list of proposed legislation changes that may impact our business day to day. In an attempt to keep abreast of such proposed changes, Tamar HR highlight below a snapshot of some of the key topics that are detailed in the plan:-

Day One Rights: Unfair Dismissal – This currently starts at a period of two years and as such is a change to the aspect of employers managing the early stage of onboarding and ‘job fit’.

Calculation of the National and Minimum Living Wage (Genuine Living Wage) ­– Labour plan to remove the remaining adult age band (i.e. 18-20) together with the Low Pay Commission having a wider remit to take into account the cost of living increases in its recommendation of the national rates.

Changes to Statutory Sick Pay – This includes removing the current three waiting days before SSP is paid and removing the ‘lower earnings limit’ for eligibility currently set at £123 per week.

Safer Workplaces – Labour will review the health and safety guidance and regulations with a view to modernising legislation and guidance in an effort to support the wellbeing of workers.

Zero Hour Contracts – Not an outright ban. Labour wish to impose contracts that reflect regular hours worked (over a twelve-week referencing period). Reasonable notice will also be required for shifts and compensation for shifts cancelled or curtailed.

Strengthening Fire and Rehire – A ‘strengthened’ code of practice on circumstances with which an employer can give notice on an employee’s current contract and to which re-engagement takes place on new terms.

Employment Status ‘Single Status of Worker’ – A complex issue where employment law is concerned. Labour plan to define a clearer framework to differentiate the employed and workers from the genuinely self-employed.

The ‘Right to Switch Off’ – In particular for home workers.

Single Enforcement Body – Created to enhance employment rights with workplace inspection rights. The aim to provide greater protection for overseas workers.

Equality and Protection – To provide greater protection on equal pay, return from maternity, menopause (action plans for +250 employers) and sexual harassment.

Parental Leave – Labour propose to allow parental leave to start from day one. Currently this applies after one year. Something which you might see a greater take up of.

Gender Pay Gap and Reporting – Extension to disability and ethnicity for larger employers +250 in addition to the current requirement for gender pay. A requirement for further data collection on an employer’s workforce.

‘Collective Voice of Workers’ including Trade Union involvement – Simplifying legislation around strikes, reducing thresholds for recognition voters, improving access rights for Trade Union representatives within workplaces and including in Statement of Employment Particulars (contracts) reference to the right to join a Trade Union.

Employment Claims – A significant change is proposed to extend the timeframe from three to six months where this is not already the case, which is for most claims, including unfair dismissal.

Redundancy Rights and Tupe – Labour plan to strengthen redundancy rights and protections ensuring the right to redundancy consultation is determined by the number of people impacted across the business rather than in one place. The rights and protections for workers subject to Tupe processes will also be tightened.

Unpaid Internships – Labour plan to ban unpaid internships except when they are part of an education or training course. Allowing the talent of tomorrow to gain vital skills and experience required to succeed.

Social Care Sector – An overhaul is planned to include a degree of collective work based on negotiation around pay, terms and conditions as well as training standards. Enforcement of paid travel time for carers is also mentioned.

If you have any questions, please do not hesitate to get in touch with the Tamar HR team!

info@tamarhr.co.uk / 01752 686570

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