Navigating Labour’s New Era: Key Insights from Our Biannual Labour Market Review
With Labour's ascent, the UK labour market is undergoing significant change, making it essential to remain informed and prepare your business. Our Labour Market Review LinkedIn Live delved into the anticipated shifts in employment law and workers' rights under Labour's ‘Plan to Make Work Pay’. Expert Paul Chamberlain from JMW Solicitors, joined recruitment experts Ruth Forster, Phillippa Hart and Charlotte Sykes, to examine potential legislation changes as touched on in the King’s Speech, including zero hours contracts, day one rights, and flexible working arrangements. This was more than a market review; it was an in-depth analysis of changes that will impact employment.
EXPLORING LABOUR'S MARKET CHANGES
Impact of Labour Party's Policies
Labour's policies have the potential to significantly transform employment by giving all workers the same rights. They are likely to remove the distinction between ‘employees’ and ‘workers’ which is more complicated that it may first appear. For example, the introduction of day one rights could lead to an increase in tribunal claims, emphasizing the need for improved recruitment processes. Eliminating zero hours contracts and tightening the code on ‘fire and re-hire’ may compel companies to reevaluate workforce strategies. While these changes could foster equity, they also raise employer concerns about hiring flexibility. Grasping these impacts is going to be crucial for aligning strategies with new legislation. The panel encouraged the adoption of engagement strategies and leadership programs to navigate change and sustain growth.
Key Labour Market Trends
The labour market is shifting towards more inclusive and flexible arrangements, underpinned by Labour's emphasis on equity. Trends such as flexible working and the "right to disconnect" highlight the importance of work-life balance. Remote working is becoming the norm, and enhanced benefits like improved maternity rights indicate a commitment to comprehensive employee support. The demand for professional growth is fuelling the need for training programs, focusing on team building and engagement to attract talent. Organizations must adopt development and transformation strategies to remain competitive.
NAVIGATING EMPLOYMENT LAW REFORMS
Day One Rights
Labour's reforms regarding zero hours contracts and day one rights signify a legal shift. Day one rights would eliminate the two-year dismissal claim period, potentially increasing tribunal claims and impacting hiring practices. At the moment, there’s a 2-year qualifying period, however they’re proposing to give employees rights from their first day of employment. A 6-month probationary period could change the landscape but either way the legislation is weighted towards employees; not surprising given it’s a labour government. This is an opportunity for businesses to make hiring and management processes as robust and as strong as possible. By getting the right people in first time, and retaining them, through excellent recruitment, onboarding and management, will reduce the risk of tribunal cases for dismissal. Take ownership and responsibility for your hiring practices and management culture to future proof your business ahead of any changes to legislation impacting day 1 rights.
Zero Hours Contracts
Despite what you read in press, these types of contracts are not as frequently utilised as most would believe. On the one hand, they could be seen as part of an approach to flexible working and some on these contracts don’t feel exploited as it suits their needs.
However, zero hours contracts are under scrutiny concerning job security, with bans on "exploitative" versions being considered. There is no definition of ‘exploitative’ from Labour yet and they haven’t said they are going to completely ban zero hours contracts. Yet they do want to try and remove any ambiguity from them.
Ending Fire and Re-Hire Practices
Labour's commitment to ending fire and re-hire practices reflects a move to protect employee rights. Labour may limit when these practices can occur, though a total ban could threaten some businesses. Companies should prepare by fortifying engagement strategies and development frameworks, cultivating a positive culture while managing employment transitions. Training programs can equip managers to handle employee relations effectively, achieving compliance and support while balancing protection with sustainability.
Extending SSP and Maternity Rights
Labour proposes extending Statutory Sick Pay (SSP) and maternity rights to enhance employee welfare. Changes to SSP would eliminate the three-day waiting period, providing immediate financial support rather than employees having to meet statutory requirements and wait a number of days for support. Expanded maternity rights would prevent dismissals during and after leave, putting women in protected positions. While these changes won’t impact things for businesses who already have SSPs in place, it is an opportune time to review your business policies around SSP and maternity leave. Training and leadership programs can also assist in navigating these regulations, fostering supportive environments that ensure compliance and success.
PREPARING YOUR BUSINESS FOR THE FUTURE
Flexible Working and Employee Engagement
Flexible working and engagement are crucial as businesses strive to meet workforce expectations. Labour's promotion of the right to disconnect and flexible access aims to enhance work-life balance and satisfaction. While Labour may not take a move full in this direction, it’s anticipated that their Intention is to increase circumstances and availability of flexible working, as well as providing more guidance on it generally. Implementing remote and adjustable hours improves morale but requires careful execution. To prepare for this, businesses should think about how their company is set up, what their culture and their ethos is, as well as how effective their communication is. Business coaching and training solutions can assist in strategizing flexible management. Open communication and trust bolster engagement, and you can use team-building strategies to maintain a motivated workforce. Prioritizing flexibility keeps businesses compliant and attractive to talent. Essentially, these changes are encouraging us to have a conversation with employees to see what works for everyone.
Leveraging Recruitment and People Strategy Services
Adapting to Labour's policies can be helped by taking the time now to review your business’ policies and practices. CWR can help with many elements of this, from auditing your business to provide guidance and direction on where you can optimise and improve, as well as providing training and coaching to help implement these recommendations.
For example, coaching can provide insights into recruitment, management, and performance, empowering leaders through development programs. Training programs can align team goals with company objectives, fostering a cohesive workforce. Effective workplace training help develop a motivated workforce that enhances performance and drives transformation, preparing businesses for a modern market. Programs we can help you put into place will update employees on new regulations, improve skills, and facilitate job role adaptation. These initiatives are an investment that will boost engagement and retention and demonstrate your commitment to growth. Taking these steps now ahead of legislation changes coming up in mid-October will ensure you’re on the front foot.
UNLOCK YOUR BUSINESS’ POTENTIAL WITH EXPERT RECRUITMENT AND STRATEGIC PEOPLE MANAGEMENT
Talk to us today about our Recruitment People Strategy package to prepare your business for future legislation changes. Our all-encompassing consultancy package aims to revolutionise your Recruitment and People Strategy, ensuring unparalleled ROI, from hiring the perfect talent to fostering a culture of growth and leadership. Our Recruitment People Strategy, delivered by CWR and a network of specialists, offers:
Tailored recruitment solutions and strategies
Strategic workforce planning and management
Bespoke employee training and development programmes
Inclusive workplace culture strategies
Enhanced succession planning and outplacement support
Partner with CWR to achieve exceptional ROI in recruitment, retention, and leadership development.
To discuss this further, contact Charlotte on 01327 831 269 or email: charlotte@cwrconsultancy.co.uk