There has been talk about the type of employment law changes that Labour could introduce if they win the General Election. Is there anything that your charity would be wise thinking about now?
If, as the polls predict, Sir Keir Starmer is handed the keys to 10 Downing Street on July 5th, we can expect Labour to begin introducing the biggest changes to UK employment law since Tony Blair’s first government 27 years ago.
The significance of that - for the charities sector as much as any - should not be underestimated. They could range from “day one” employee rights to minimum pay.
As ever, the best approach is to be pragmatic; adapting and acting as soon as you can to reduce your organisation’s risk of being unintentionally caught out by change.
So the first thing that we are advising charities - indeed all employers with whom we work - to do now is be aware of what could be coming. Make yourself familiar with what Labour (and, indeed, the other political parties) intends. And, in the Scottish context, remember that employment law is reserved to Westminster. Any changes would apply across the United Kingdom.
Labour’s Plan to Make Work Pay: Delivering A New Deal for Working People promises to introduce new employment legislation in Parliament within 100 days of entering government with “a full and comprehensive consultation” on its implementation.
Considering the General Election predictions, one thing that employers are wise to think about is how they manage new-starts. There are currently a number of rights which employees get only following two years’ service, the most notable being the right to bring an unfair dismissal claim. If elected, Labour proposes introducing these as “day one” rights.
People are generally recruited on a probationary period. On a practical level as an employer, you might find things are not working out with someone during that time. The law currently gives you the right to say that and part company, without consequence.
That would change, however. While proposals would not prevent “fair dismissal”, they could mean that you may need to follow a process and have a reason for dismissal during probation.
To prepare, if you don't use probationary periods, you should start doing so. For those who do use them, you could look at your procedures and consider what you may have to do - particularly if actively recruiting for roles, or expecting to do so in the coming months.
Some charities with current complicated procedures to deal with matters including misconduct, poor performance and absence management may not apply those procedures to employees with short service. They should consider whether they need to introduce a simplified version of the process when dealing with probationary dismissals.
Another change which many charities would be advised watching closely is employee status. Those classed as “employees” currently have greater rights than those categorised as “workers”, with the latter being the official status of many in the charitable sector. These include redundancy and sick pay.
Labour has suggested merging these. While bringing significant benefits to those employed, it also creates another technical but significant factor of which employers need to be aware.
Elsewhere, a ban on exploitive zero-hours contracts - potentially with the introduction of guaranteed minimum hours contracts - may affect some across the third sector, as could a pledge to “make sure the minimum wage is a real living wage”.
The proposal to establish a Fair Pay Agreement in the health and social care sector is one which charities operating in that field would be wise monitoring. That change may be welcomed by some charities who currently find pay negotiations frustrating when the amount of funding they get is set by central government.
It will be interesting to see where the General Election takes us. While we cannot pre-empt a result, polling points to a review of your policies and procedures being time well spent.
This article featured in the June 2024 edition of Third Force News within the ‘Ask TFN’ section.
