What Does a Labour Government Mean for Employers?

The Labour Party have ended the Conservative Party’s 14 years in power, by winning a substantial majority in the General Election.

With Kier Starmer elected as the UK’s new Prime Minister. We’re diving into the Labour manifesto, which proposes over 60 changes, with some set to be implemented within the next few months.

Here’s a breakdown of what business owners and employers can expect:

Continued increase to wages

The National Living Wage will continue to rise and take into account the current cost of living. Age bands for the minimum wage are also planned to be scrapped under the new Labour Government, giving hundreds of thousands of workers a pay rise across the UK.

Employment contract changes

Labour also aim to ban zero hour contracts and unpaid internships, with the aim of contracts reflecting regular hours worked. This will be a big hit for some sectors, such as social care, hospitality and catering, retail and warehousing.

Rights from day one

Sick pay, parental leave, bereavement leave, unfair dismissal and other basic rights are proposed to be effective from day one, giving workers more rights and could result in more tribunal claims.

Employment support

Proposed reform of employment support, which involves the collaboration of Jobcentre Plus and National Careers Service to offer more employment support to get people into work.

Tax cap

Corporation tax is set to be capped at its current level of 25%, alongside a published roadmap which sets out future business taxes over the duration of the parliament. ?

Menopause support

Those employers with over 250 employees will be required to do more to support those going through the menopause, including producing a Menopause Action Plan. Guidance will be provided for smaller employers.

Pay gaps

Businesses with 250 employees and more will need to report on ethnicity and disability pay gaps.