What does the General Election mean for employment law and what might change?

On 22^nd May 2024, the UK’s Prime Minister, Rishi Sunak, made an announcement that a General Election would take place in July. This General Election is a significant event, poised to bring about substantial changes in various sectors, including employment law. Political parties often have differing views on how to regulate employment, which can lead to changes in legislation and policy that directly affect employers and employees.

In this article, we will look at how the General Election might impact employment law and what changes we could expect depending on the outcome.

Wash-up Period

Parliament was deemed dissolved on 24^th May which meant there was a “wash-up period” of two days.

A “wash-up” period is the term used to refer to the period of time prior to the dissolution of Parliament. During this time, any unfinished Parliamentary business may be lost, this can include bills that are currently in the process of establishment. Some bills that are in the process can be progressed quickly to be completed, often in a much-shortened form.

The bills that have been progressed quickly through this wash-up period include:

• The Employment (Allocation of Tips) Act – this Act had received Royal Assent and was due to come into action in October 2024. However, there was a new statutory Code of Conduct required which was laid before Parliament during the wash-up period and subsequently agreed within this time.
• The Paternity Leave (Bereavement) Act – this Act intends to remove the 26-week continuous service requirement in circumstances where the mother or person with whom a child is expected to be placed with for adoption dies. The bill is said to be brief and contain little detail, which would be contained in separate Regulations. There is no information as to when this Act is due to come into force.
• The Statutory Code on Fire and Rehire – the purpose of this Code is to give guidance on circumstances of firing and re-hiring and any conflicts that can occur in this process. The Code is due to come into force on 18^th July 2024.

There were some upcoming changes expected later in 2024 and beyond that did not finish processing before the end of the wash-up period, this has left their status uncertain. They include:

• The Neonatal Care (Leave and Pay) Act – although this Act received Royal Assent back in May 2023, the regulations setting out the right and how the leave and pay would apply have yet to be determined. This has left the actioning of this Act with the original 2025 date in question.
• The Workers (Predictable Terms and Conditions) Act – as with neonatal care, this Act also received Royal Assent back in September 2023, however no regulations have been agreed in order to bring this act into force. The original date had been set as September 2024 but this could be changed depending on the results of the Election.

Conservative’s vs Labour’s Plans

The Conservative Party, known for its pro-business stance, might continue to emphasise reducing regulatory burdens on employers while maintaining certain worker protections. If they win the election, possible changes may include:

• Flexible Working and Gig Economy: Supporting flexible working arrangements and updating protections for gig economy workers to balance business flexibility with worker rights.
• Brexit-related Adjustments: Further divergence from EU labour standards, potentially affecting regulations on working hours and agency worker rights.
• Trade Union Laws: Possibly tightening trade union laws to limit industrial actions and union powers.

The Labour Party, which traditionally focuses on enhancing workers' rights, might push for significant reforms to strengthen employee protections. Expected changes could include:

• Enhanced Workers' Rights: Introducing robust rights for workers, such as improved sick pay, holiday entitlements, and protections against unfair dismissal from day one of employment.
• Sectoral Collective Bargaining: Implementing sectoral collective bargaining to allow unions to negotiate pay and conditions across entire sectors.
• Employment Tribunal Reforms: Overhauling the employment tribunal system to make it easier for employees to bring claims.

Key Areas

Regardless of the election outcome, several key areas in employment law are likely to see changes:

• Minimum Wage. Expect debates on increasing the national minimum wage, with Labour and the Greens potentially advocating for significant hikes to reflect the cost of living, while the Conservatives might propose more moderate adjustments.
• Gig Economy. Regulating the gig economy will be a priority, with changes potentially including clearer definitions of employment status and ensuring gig workers receive basic employment rights such as holiday pay and minimum wage.
• Employment Contracts. Reforms could aim at making employment contracts more transparent and fair, addressing issues like zero-hour contracts, and ensuring workers understand their rights and obligations.
• Discrimination and Harassment. Strengthening laws against workplace discrimination and harassment might include more stringent reporting requirements and harsher penalties for non-compliance.
• Remote Working. The shift towards remote working, accelerated by the pandemic, could lead to legislation focusing on the right to request remote working and defining employer responsibilities in this context.

The outcome of the General Election will have a profound impact on UK employment law. Both employers and employees should stay informed about party manifestos and proposed legislative changes. Adapting to new laws and policies will be essential in navigating the post-election employment landscape. The focus will likely remain on balancing business needs with worker rights, fostering a fair and dynamic employment environment.

If you have any questions about the Election or potential legal updates, our Peace of Mind Team can provide specific advice and our Document Audit Team can help draft relevant policies in line with these updates. Contact our employment law team by emailing employment@warnergoodman.co.uk or by calling 023 8071 7717.