Wednesday, 3rd July 2024

WHILE LABOUR PROPOSE TO ‘MAKE WORK PAY’, WHAT ARE THE OTHER PARTIES’ PLANS?

Our previous briefing [Labour plan to make work pay. What does this mean?] covered some of Labour’s intended employment law proposals and what the consequences of a General Election 2024 Labour victory may be for individuals and businesses alike. The Conservatives, Reform UK and the Liberal Democrats are the other parties averaging over 10% in the polls. What do they propose for employment law reform?

 

Please note that this piece is not exhaustive in terms of covering each of these parties’ proposals in this area.

 

Conservatives

 

The Conservative Party do not propose changes as  radical as those intended by Labour in this area and instead would continue with current government plans and draft legislation in this area should they win the General Election. Of note, their manifesto includes:

• Overhauling the fit note process. While not new, with reforms having been suggested earlier this year to “change the sick note culture”, responsibility for issuing fit notes would shift from GPs to specialist work and health professionals. This has the aim of helping people stay in or return to work.
• Amending the Equality Act 2010. The protected characteristic of sex would be clarified to mean an individual’s biological sex. This has the aim of protecting women and girls by ensuring single sex services and spaces can be provided, with examples of in healthcare and sports settings given.
• Continuing to implement the Minimum Service Levels legislation. This came into force last year, intended to strike a balance between the right to strike but also enabling regulations providing for minimum service levels of public services (eg education, health, transport etc) to be introduced.
• Cutting employee National insurance to 6% by April 2027. This would be a continuation of recent cuts put in place by the government, with the long-term goal of abolishing NI altogether.

 

Reform UK

 

Reform UK’s ‘Our Contract with You’ (the equivalent of their manifesto) is briefer than both Labour and the Conservative’s manifestos and so lacks detail on their proposals for employment law, but their plans include:

• Raising income tax starting threshold to £20,000 per year. This would have the aim of “getting people off benefits”, relieving up to 7 million people from the tax, and saving workers about £1,500 per year. The basic rate would stay at 20% and higher rate starting threshold at £70,000.
• Cutting Corporation Tax. Reform want to free small and medium sized businesses from the tax and would lift the minimum profit threshold to £100,000. They would also cut the tax rate from 25% to 20%, ultimately to 15% in year 3.
• Abolishing IR35. Reform want to support sole traders and the self-employed, who they say work longer and take more risks.
• Scrapping existing laws. No specific laws are referenced, but there is a general pledge to “Scrap thousands of laws that hold back British business and damage productivity, including employment laws. We must make it easier to hire and fire so that businesses can grow”.
• Scrapping EU Regulations. Reform propose to rescind the over 6,700 retained EU laws, citing employment as one of the areas in which they will do so.
• Replacing the Equality Act 2010. Reform propose to “replace” the “2010 Equalities Act” [sic], which they say requires discrimination by way of performing ‘positive action’ and getting rid of such rules that they say have lowered standards and reduced economic productivity. They do not elaborate on the proposed replacement.

 

Liberal Democrats

 

Like Labour, the Liberal Democrats’ manifesto has considerable employment law reform focus.

There is intention to match employment rights to the “age of the ‘gig economy’”, and enhance parental, disability, sickness, and carers’ rights by:

• Establishing a new dependent contractor status. This would sit between employees and the self-employed, with minimum earnings rights, sick and holiday pay. We currently have ‘worker’ status in that space, and so it would remain to be seen how this new status would tie in or differ there.
• Raising minimum wage for zero hours contracts. To compensate individuals on zero hours contracts for their uncertain fluctuating working hours, they would receive a 20% higher minimum wage at time of normal demand.
• Giving a right to request a fixed-hours contract. Zero hours and agency workers would have the right to request a fixed-hours contract after 12 months, to not be unreasonably refused.
• Shifting the burden of proof. In employment tribunals, proving (or disproving as the case may be) employment status would be on the employer, rather than the employee.
• Doubling Statutory Maternity and Shared Parental Pay. These would be paid at £350 a week.
• Increasing paternity leave pay. This would be increased to 90% of earnings, higher earners capped.
• Introducing ‘use it or lose it’ month. For father and partners, this would be an extra month on top of paternity leave paid at 90% of earnings.
• Requiring large employers to publish parental policies. ‘Large’ is not specified, but large employers would have to publish their parental leave and pay policies.
• Making day one parental rights. All parental pay and leave would become a day one right and include those self-employed.
• Increasing availability of statutory sick pay. Making more than one million workers earning less than £123 a week (mostly made up of women) eligible, and payment available from first day of sickness (rather than the fourth as it is currently).
• Introducing specialist disability employment support. Employer awareness of the ‘Access to Work’ scheme would be raised (and the application process sped up and simplified). ‘Adjustment passports’ would be introduced to record a disabled person’s adjustments and modifications, which would carry over with the individual to any new job, together with their Access to Work support.
• Introducing caring and care experience as protected characteristics under the Equality Act 2010. This would be to require employers to make reasonable adjustments for those with caring responsibilities to support those providing care, and to enhance the rights of those in or have been in care.

If you require further information about anything covered in this briefing, please contact Michael McDonnell, William Gubbins or your usual contact at the firm on +44 (0)20 7526 6000.

 

This article is for general purpose and guidance only and does not constitute legal advice.  It should not replace legal advice tailored to your specific circumstances.