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What could the new labour government mean for the employment sector?

24 July 2024

With Sir Keir Starmer’s Labour Party having won the 2024 general election in a landslide victory, what could this mean for both employers and employees? Labour's manifesto promises a variety of reforms aimed at improving wages, enhancing worker rights, and ensuring job security.

So, let’s take a closer look at what Labour have promised to deliver.

A genuine living wage

One of Labour's flagship promises is the introduction of a genuine living wage. This involves adjusting the remit of the Low Pay Commission to ensure that the minimum wage reflects the actual cost of living. The removal of age bands means that all adult workers will receive the same minimum wage, aiming to lift many out of poverty and narrow pay gaps across different demographics.

Banning zero-hour contracts

Labour has committed to banning zero-hours contracts, which have been criticised for creating job insecurity. This policy aims to provide workers with predictable and secure hours, ensuring that they can plan their lives with greater certainty.

Enhanced worker rights

Labour has pledged the “biggest upgrade to rights at work for a generation.” And a key part of this promise is the proposal to provide basic individual rights. Labour has promised “basic individual rights from day one for all workers”, ending the system that leaves workers waiting up to two years to access protection from unfair dismissal.

Ending Fire and Rehire Practices

The controversial practice of firing employees only to rehire them on worse terms will be prohibited. This change is designed to protect workers from being forced into unfavourable conditions under the threat of dismissal.

Simplified employment status

Currently, English law recognises three types of employment status: ‘employees’, ‘workers’ and ‘self-employed’. The Labour Party plans to consult on establishing a unified worker status for everyone except the genuinely self-employed. They propose that this single classification will reduce 'bogus' self-employment and simplify the framework for both workers and employers.

The new Labour government’s employment policies represent a significant shift towards more worker-friendly legislation. For workers, this means improved wages, better job security, and enhanced rights. Employers will need to adapt to these changes, ensuring compliance and revising their employment practices accordingly. Overall, these reforms aim to create a fairer, more equitable, and more secure working environment in the UK.

If you're navigating these changes as a job seeker or employer, Anna Maher Recruitment is here to help. Specialising in professional services and recruitment industry roles we bridge the gap between exceptional talent and inspiring companies. Reach out to Anna on 07715454545 for a confidential career chat, or discover how we assist employers in hiring talented individuals.

 

 

 

 

 

 

 

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