As the general election approaches, employment law remains a critical area of focus for political parties. This blog provides an overview of some of the parties’ stance on employment law, based on their recently released election manifestos.

Conservative Party

Key points:

  1. Sickness: Alter the “fit note” system to move responsibility from GPs to other healthcare professionals. The overhaul is so that people are not signed off sick “as a default”.

  2. National Living Wage: This would be maintained at two-thirds of median earnings in each year of the next Parliament.

  3. Industrial Action: Continue with the implementation of minimum service level agreements.

  4. Employees’ National Insurance: Cut to 6% from 2027.

  5. Self-Employed National Insurance: Abolish by the end of the next parliament.

  6. Executive Bonuses: Ban executive bonuses in the water industry if a company has committed a serious criminal breach.

  7. Apprenticeships: Creation of 100,000 high-quality apprenticeships in England every year by the end of the next Parliament, including flexible frameworks in the film, TV, gaming and music sectors to include work on live production.

Labour Party

Key points:

  1. Minimum Wage: Alter the criteria for determining National Minimum Wage to include consideration of cost of living and removing age bands, so all adults are entitled to the same minimum wage.

  2. Employment Rights: Introduce a day 1 right to parental leave, sick pay and unfair dismissal. In respect of unfair dismissal, employees currently need 2 years’ service to bring a claim.  There has been mention of probationary periods having special status where unfair dismissal becomes a day 1 right.

  3. Right to disconnect: A new right giving workers the right to disconnect from work outside of working hours and not be contacted by their employer. It is anticipated that workers would have the right to constructive conversations on the topic with management to develop approaches that work for the business, rather than a blanket right to disconnect.

  4. Trade Unions: Empower trade unions and simplify the process for union recognition in workplaces.

  5. Zero-Hour Contracts: Ban exploitative zero-hour contracts (not an entire ban).

  6. Employment Tribunal: Increase Tribunal time limits for bringing all claims from 3 to 6 months.

  7. Discrimination: Take action to reduce the gender pay gap, strengthen protections from maternity and menopause discrimination and sexual harassment as well as strengthen protections for whistleblowers reporting sexual harassment. They will require employers with more than 250 employees to have a menopause action plan.

  8. Redundancy: Altering collective redundancy consultation requirements to be dependent on the number of redundancies across the whole business rather than the number at each ‘establishment’.

  9. Contracts: Requiring the section 1 statement issued to all new starters to inform staff of their right to join a trade union.

  10. Flexible working: Introducing flexible working as a default right unless employers have a good reason to reject it.

  11. Bereavement leave: Introducing a right to unpaid bereavement leave (currently only available following the death of a child).

  12. “Fire and rehire”: Ending the practice of “fire and rehire” as a lawful way to change an employee’s contractual terms.

Liberal Democrats

Key points:

  1. Discrimination Laws:

  • Introduce new Equality Act protected characteristics of ‘caring’ and ‘care experience’.

  • Require large employers to publish data on gender, ethnicity, disability, and LGBT+ employment levels, pay gaps and progression, and publish five-year aspirational diversity targets.

  • Simplify the Access to Work scheme.

  • Introduce ‘Adjustment Passports’ to record the adjustments, modifications and equipment a disabled person has received, and ensure that Access to Work support and equipment stays with the person if they change jobs.

  1. Zero-hour contracts: Increase minimum wage by 20% for people on zero hour contracts at times of normal demand to compensate them for the uncertainty of fluctuating hours.

  2. Employment Status: Establish a new ‘dependent contractor’ employment status in between employment and self-employment, with entitlements to basic rights such as minimum earnings levels, sick pay and holiday entitlement.

  1. Sick Pay: Improve Statutory Sick Pay rights by introducing it from day 1 (as opposed to the current fourth day of absence) and remove the lower earnings limit.

  2. Employment Tribunal: Amend the burden of proof in Employment Tribunals so that the employer must disprove employment status (rather than the employee to prove it).

  3. Family Rights:

  • Parental leave and pay to become a day 1 right and extending these to the self-employed. Parental pay rights currently apply after 26 weeks’ service.

  • Increasing Statutory Maternity Pay and Statutory Paternity Pay from the current rate of £184.03 to £350 per week.

  • Introduce an extra ‘use-it-or-lose-it’ month of parental leave for fathers and partners, paid at 90% of earnings.

Other parties’ positions, including the Green Party and Reform UK, can be considered by viewing their manifestos on their websites.

Employment law is an important consideration in the upcoming general election, with each political party presenting distinct approaches to addressing workers’ rights, job security, and fair wages. Voters will need to consider how these policies align with their priorities and values as they head to the polls.

Whether you are an employer or an employee, Farleys’ employment law specialists are on hand to advise on current employment laws in relation to your individual circumstances. Get in touch today on 0845 287 0939 or contact us by email.