A new Labour Government: what it means for HR professionals

With a Labour victory confirmed in the 2024 General Election, we’re delving deeper into the party’s plans for employment law and exploring what these changes would mean for small businesses and their HR teams. In its manifesto, Labour outlined a series of ambitious and comprehensive proposals aimed at transforming the landscape of employment law, which it claims are designed to significantly enhance workers' rights, increase wages, and improve the overall working conditions for employees across the country. Here’s what we – as HR professionals and small business owners – need to know.

One of the cornerstones of Labour's employment law proposals is the introduction of a range of policies set out in the party’s “Employment Rights Green Paper,” many elements of which Labour has stated that it will introduce via an Employment Bill within the first 100 days of being in power. The plan proposes a significant number of changes to employment law, which Labour claims will be developed in consultation with businesses to provide workers with greater security and protection in their workplaces. Key elements of the plan include:

Enhanced Job Security: Labour plans to strengthen protections against unfair dismissal, making it more difficult for employers to terminate employees without just cause.

Protection for Gig Economy Workers: The party aims to ensure that gig economy workers (i.e. those who fulfil either part-time or temporary roles, often as freelancers) receive the same rights and benefits as traditional employees, including sick pay, holiday pay and a guaranteed minimum wage.

Minimum Wage: Labour has stated its commitment to addressing wage inequality by proposing significant increases to the minimum wage, namely introducing a ‘genuine living wage’ for all workers. This measure is intended to ensure that all workers earn a living wage that reflects the true cost of living in the UK.

Zero-Hour Contracts: A major policy shift proposed by Labour is the ban on zero-hour contracts. These contracts, which do not guarantee any hours of work, have been criticized for creating job insecurity and instability for workers. Labour's plan to eliminate zero-hour contracts is intended to provide workers with more predictable and stable employment, enabling them to improve their quality of life and achieve greater financial stability.

Trade Unions: Labour has long been an advocate for trade unions and collective bargaining. In the 2024 General Election, the party proposed to enhance the powers and protections for trade unions, including streamlining the process for workers to form and join trade unions, strengthening the rights of unions to negotiate on behalf of workers and safeguarding the rights of union members to participate in union activities without fear of reprisal from employers.

Parental and Family Leave: Labour also intends to expand parental and family leave policies. The party proposes to extend maternity and paternity leave, increase pay for leave periods, and introduce more flexible working arrangements for parents and caregivers. These measures aim to support working families and ensure that parents can balance their work and family responsibilities effectively.

Training and Skills Development: Investing in the workforce is another key focus for Labour. The party plans to increase funding for training and skills development programs, ensuring that workers have access to the education and training needed to advance in their careers. This includes promoting continuous learning opportunities for workers of all ages and expanding apprenticeship programs to provide young people with valuable on-the-job training and experience.

If you’d like any advice on these proposed changes or need help amending your own policies and procedures as the changes take place, Ambition HR is here to help. As your strategic HR partner, we work with you to align both business and HR objectives, developing bespoke people plans and helping you put these plans into action. If you feel like you’d benefit from an informal chat about your business needs and how these proposed changes might impact you, you can schedule a call online today.