Labour’s landslide election win will usher in a new landscape for employers and employees. HR will have its hands full keeping on top of the stream of change promised in the new government’s first 100 days. Here, leading figures from the sector look forward to what businesses can expect in terms of law changes, skills and immigration.
‘Labour must protect the workforce’s flexibility’
Neil Carberry, Recruitment and Employment Confederation chief executive
“With a decisive mandate in hand, this new government has goodwill from businesses and support for its core goal – getting growth and prosperity flowing across the UK. Only business can deliver this – so a strong partnership is necessary.
Workers and businesses across the country understand the goals of Labour’s plan but its implementation must support a growing economy and accept that there is no one best way of working. That is not what people want – Neil Carberry
“A credible industrial strategy, as promised in the Labour Party manifesto, is essential but can only work if it is based on people. There is no doubt that Labour cares about the workforce – but what matters now is how they deliver. The labour market has changed over the past few decades – of course workers need to be treated well, but that includes choice and opportunity on how and when they work.
“Workers and businesses across the country understand the goals of Labour’s plan but its implementation must support a growing economy and accept that there is no one best way of working. That is not what people want. By working in partnership with businesses and unions, and committing to the value of our flexible labour market, this new government can learn the lessons of past Labour successes such as the National Minimum Wage and pensions automatic enrolment. We can deliver big change when we tread carefully and take the practical experience of firms into account.
“Nowhere is the value of the flexible workforce more apparent than in the health, social care and education sectors. Attacks on flexible work during the campaign – when agency workers are keeping these services afloat – mis-represented the true picture of public sector workforce planning that has been in chaos. This new Labour government has the chance to change all that by getting public sector employers, unions and agencies together to address procurement issues and deliver better, more efficient services for voters.”
‘Increase in unfair dismissal claims’
Rebecca Harding-Hill, partner for employment at BCLP
“Labour’s employment law reforms promise an ambitious and wide-ranging programme of change. But removing qualifying periods and increasing limitation periods will likely lead to a substantial increase in unfair dismissal claims, placing a much higher burden on an already overstretched tribunal system.
“Giving workers the same rights as employees could have unforeseen consequences and complications, from redundancy consultation to TUPE to some self-employed individuals having unfair dismissal rights.
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“Also, large employers may wonder whether the administrative burden of mandatory ethnicity and disability pay gap reporting has been properly thought through, and if a supporting code of practice will be provided, requiring longer consultation before its introduction.
“In the same breath, the integration of new family-friendly policies, along with sexual harassment and maternity protection measures, overlap quite extensively with legislation that already exists. The merging of the two may well be long and complex.
“If the new Labour government implements all of these proposals, the UK might witness, certainly in some areas, the biggest changes in employment law it has seen in decades.”
‘Skills and better quality jobs are the key to prosperity’
Michael Stull, managing director, ManpowerGroup UK
“As millions nationwide are currently unable to either find, access or participate in work, we look forward to engaging with new ministers across the new government as Labour implements the initiatives outlined in its plan to ‘Make Work Pay’.
“Better skills, leading to better quality jobs that provide sustainable earning potential, work-life balance, and wellbeing – done in ways that can be equitably accessed and shared by all – are, in our view, what’s needed to deliver a more inclusive and dynamic labour market. Under Labour’s new leadership, the UK’s transition towards the new-look economy of the future is a priority that we and others are eager to explore.”
‘Changes in law could be made with little warning’
Gerard O’Hare, legal director at WorkNest
“Businesses of all sizes are facing significant employment law changes over the coming years. During the tenure of the last Labour government, a significant amount of employment legislation, regulations and guidance was implemented which gives us an idea of the potential level of change we could see.
Better skills, leading to better quality jobs that provide sustainable earning potential, work-life balance, and wellbeing – done in ways that can be equitably accessed and shared by all – are, in our view, what’s needed” – Michael Stull
“We anticipate a rise in the number of employment tribunal claims as employees are given more rights and protections, including the removal of the two-year qualification period to claim unfair dismissal. However, it will be interesting to see how the system would cope with an increased workload here.
“Although employment law legislation is implemented twice a year, which at least offers some guidance on timeframes, working practices can also be changed through publishing Acas guidance and similar, so changes could be made with little warning through other channels than legislation.”
‘Unwary employers may be caught out’
Nick Hurley, partner and head of employment at Charles Russell Speechlys
“Changing the service length element of claiming unfair dismissal protection is technically something that the new Labour government could push through quickly, as there is scope in existing legislation to make this change without consultation or parliamentary approval. It seems unlikely that this will be pushed through without some consultation, but our view is that this change is likely to come first. Inevitably it will catch many unwary employers out.
‘Little wriggle room on immigration’
Yash Dubal, director, senior immigration associate at A Y & J Solicitors
“Labour promises ‘a fair and properly managed immigration system’ and criticises what it calls ‘a dependency on workers from overseas to fill skills shortages’. To counter record migration, a Labour government will increase incentives for businesses to train locally.
“So will UK businesses be required to implement new training plans before being able to sponsor migrant workers from overseas? This could have a huge impact on businesses with urgent vacancies to be filled.
“It could mean further refinement of the Immigration Salary List (ISL), which was introduced earlier this year to replace the Shortage Occupation List. The restrictions indicated in Labour’s manifesto could mean a reduction in the number of roles placed on the ISL, although these already constitute a significant reduction from the number of roles on the defunct Shortage Occupation List.
If there is an army of potential health care workers and builders, they will take time to be skilled up. On average it takes a minimum of three years to train as a nurse and a minimum of two years to train as an electrician” – Yash Dubal
“Labour also pledges to strengthen the Migration Advisory Committee (MAC), which is the independent body that advises the government on immigration policy. MAC recently recommended keeping the graduate visa route following a commissioned review, so it is likely this will remain, which means employers will still be able to employ overseas graduates without having to meet salary thresholds.
“The key to Labour’s proposed overhaul of legal immigration will be the party’s aim of linking immigration and skills policy. There are two pitfalls to this policy, in my opinion. The first is the assumption that there is an untapped vein of domestic workers ready to step in, get trained up and fill the roles currently being taken by migrant workers. Secondly, if there is an army of potential health care workers and builders, they will take time to be skilled up. On average it takes a minimum of three years to train as a nurse and a minimum of two years to train as an electrician.
According to a recent report from education think tank Edge Foundation, the number of skills shortage vacancies doubled between 2017 and 2022 to 531,200. There is no reason to assume that the figure has not risen since. That constitutes over half a million workers that a Labour government will need to find and train. In the short to medium term the party does not have much room to manoeuvre beyond the changes already introduced earlier this year by the Conservative Party in terms of immigration reform.
‘Skills improvement plans on the horizon’
Chetal Patel, partner, head of immigration, Bates Wells
“Skills improvement plans could be on the horizon for employers to draw up in sectors that rely heavily on skilled worker nationals with the desired outcome of training UK-based workers.
“Training people already in the UK will take time and resources, both from a financial and human aspect, so it’s yet to be seen if this is really viable for employers.
‘Power balance will favour employees more’
Alan Price, CEO at BrightHR
“Critically, Labour’s plan to “make work pay” will see a significant transfer of power from employers to employees, with a vast array of new and expanded worker rights.
“Employers will need to adapt to being more transparent in their business operations, including clearly laying out their workplace policies and reporting on ethnicity and gender pay gaps.
“Business owners must streamline their HR processes and have an efficient, automated system for tracking and reporting on employee data. With policies changing rapidly, efficiency and automation are key, but so is building transparency and trust with employees.”
‘Invest in and reform social care’
Professor Martin Green, chief executive of Care England
“Our adult social care system is a vital part of our national infrastructure. It supports people to confidently and independently to live the lives they choose and plays a key role in supporting our health system and wider economy. After the failure of successive governments to ‘fix social care once and for all’, the new administration must invest in and reform our sector as an urgent priority.”
‘Sort out skills issues’
Jonathan Geldart, Director General at the Institute of Directors
“Labour and skills shortages are persistent issues for our members. The UK needs to regain and accelerate its position of leadership in the transition to a net zero future. And an industrial strategy which unlocks private investment is needed in order to build long-term confidence in UK economic competence and stability.
“The new government is rightly committed to embedding higher standards of conduct and ethics into public life. It is equally important that the UK business community regains the esteem of wider society.”
‘Deliver sustainable growth’
Rain Newton-Smith, CBI chief executive
“Delivering sustainable growth should be the defining mission for the new government. Business stands ready to bring its innovation, ideas, and investment to make that shared mission a reality.
“The new Prime Minister has been given a clear mandate to take the tough decisions on areas like planning reform and boosting grid capacity needed to get the economy firing on all cylinders. What firms need now is a government that’s ready to hit the ground running and is laser-focused on delivery.
“Households and businesses across the UK have shown incredible resilience through Brexit, Covid and war in Europe. With the economy picking up steam, now is the moment to get behind growth. Setting out a positive vision for the UK economy and leaning into our international leadership should be top priorities for the first 100 days.
“Building a partnership for prosperity between government and business holds the key to unlocking a revitalised pitch to global investors. By working with business, the new government can deploy the capability and capacity of industry to deliver the connected transitions across net zero, the digital economy, and the future of work needed to put the economy on a pathway to sustainable growth.”
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