The UK’s new Labour government is an administration in a hurry. During the election, Sir Keir Starmer and his colleagues promised change, and their Labour government policies reflect a determination to deliver quickly.
A number of actions will take place in the government’s first 100 days. Some, such as relaxation of England’s planning laws, are likely to provide opportunities for business.
Others, focused on employee rights, will need to be closely examined by risk managers, particularly those operating in human resources (HR).
The Labour government policies are laid out in Labour’s New Deal for Working People. Claiming it is ‘pro-worker and pro-business’, the new government has said it will invite businesses, trade unions, and civil society to give their views on how it can put ideas into practice.
One priority is to strengthen statutory sick pay by removing the lower earnings limit and the waiting period to make it available to all workers.
Another heavily trailed development is the ban on ‘exploitative’ zero hours contracts giving people the right to a contract that reflects the number of hours they regularly work.
Companies looking to restructure will need to carefully examine the government’s plan to ban ‘fire and rehire’. While it recognises businesses can restructure to remain viable and preserve their workforce when there is no alternative it says this must follow a proper process.
The New Deal includes basic individual rights from day one for all workers to protect against unfair dismissal, while guaranteeing parental leave and sick pay. According to the Labour Party, this will not prevent fair dismissal or companies’ ability to operate probationary periods for new hires.
There are plans to strengthen redundancy rights and protections, for example by making sure redundancy consultation is determined by the number of people affected across the business rather than in one workplace.
Similarly, Labour wants to bolster protection for pregnant women by making it unlawful to dismiss a woman who is pregnant for six months after her return to work, except in specific circumstances.
Companies will have a new duty to inform all new employees of their right to join a union, and regularly tell staff about this.
All of this will be overseen by a new Single Enforcement Body. This is likely to be called the Fair Work Agency, and according to Angela Rayner, the new Deputy Prime Minister, it will have “real teeth”, with power to levy fines, inspect workplaces, lodge civil proceedings and bring prosecutions.
At the State Opening of Parliament on 17 July, His Majesty King Charles III outlined the government’s legislative plans. These include the Employment Rights Bill and introducing measures to improve the safety and security of public venues through a Terrorism (Protection of Premises) Bill. The King also noted the government will seek to establish appropriate legislation to place requirements on those working to develop artificial intelligence (AI), and would pursue sustainable growth by encouraging investment in industry, skills and new technologies.
Keep up to speed on this flurry of activity and its implications for risk managers.
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