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Election 2017 – what the parties are proposing for employment

GENERAL ELECTION 2017 AND EMPLOYMENT

As it’s time for Britain to return to the polls, so here is our summary of what each of the main political parties are proposing for employment policies.

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Conservatives

Theresa May describes her party manifesto as the "greatest expansion in workers' rights by any Conservative government in history", they are promising:

Brexit

  • to retain UK worker rights, post-Brexit;

Benefits

  • to increase the National Living Wage to 60% of median wages by 2020 and “in line with average earnings by 2022”
  • to give workers the right to request leave for training;
  • to give better protection for pensions, by
    - giving pension schemes and the Pension Regulator more powers
    - preventing mergers or takeovers which threaten pension scheme solvency, in extreme cases,
    - giving the Pensions Regulator the power to severely financially punish those who have mismanaged pension funds and left them under-resourced;

Family friendly

  • to give working parents 30 hours of free childcare for three and four year olds, and more programmes to help people return to work after a career break with the aim to encourage more workplaces to offer flexible working and the use of Shared Parental Leave;
  • to give workers a statutory right to a year’s unpaid leave to care for a relative and to a two-week’s paid leave to parents whose child has died;

Recruitment

  • to get one million more disabled people into employment in the next ten years and give employers support to increase flexible working and digital technology to enable this. Those who have specific disabilities and who are seeking work, are being promised tailored support;
  • to incentivise employers to take on people who may otherwise find it difficult to find paid work, e.g. those with a spent criminal conviction, by giving employers a year’s holiday from employer’s National Insurance Contributions;
  • to provide targeted support for 18-24 year olds to get them into work;
  • to double the Immigration Skills Charge to £2,000 a year, for companies employing migrant workers, to encourage businesses to train UK staff.

General employment

  • to continue the Taylor review into employment status and introduce better protections for ‘gig’ economy (self-employed) workers;
  • to allow larger organisations to pass Apprenticeship Levy funds to smaller organisations in their supply chain;
  • to extend the Equality Act to cover discrimination on grounds of mental health, even if this is of short term duration and would not usually qualify as disability discrimination;
  • to require listed companies to take into account employees' interests at board level by allowing employees to request information about the future direction of the company they work for, within sensible limits;

Company reporting

  • to strengthen shareholders' voting powers on executive pay and to require listed companies to publish pay ratios between executives and other staff;
  • to extend pay gap reporting for large employers, to cover race;

 
Labour

The Labour Party’s proposal aims to end the “rigged economy” and are largely contained in its 20 point plan which is summarised below:

Brexit

  • all existing EU law rights being preserved following Brexit. The Labour Party has also pledged that rights for EU nationals living in Britain and reciprocal rights for UK citizens living in the EU will be protected. The Labour Party has acknowledged though, that free movement of workers is unlikely to be possible, once the UK leaves the EU.

Benefits

  • introducing legislation to make sure employers recruiting from abroad do not undercut UK staff;
  • introducing 4 new public holidays, in addition to the 8 current bank holidays, to mark all 4 national patron saints’ days;
  • protecting the “triple lock” on state pensions, so that they rise in line with wages, inflation, or by 2.5% – whichever is highest. The Labour Party will also amend the Takeover Code to make sure businesses have a plan to protect pensions and workers;
  • making redundancy more complex for employers, in line with European redundancy models, with particular focus on ensuring redundancy against women is not unfair;
  • raising the minimum wage to the same level as the living wage, which is expected to be at least £10 per hour by 2020 and apply to all workers over 18, not just those over 25;
  • ending the 1% pay cap on public-sector pay and ensuring public workers receive pay rises in line with inflation;

Family friendly

  • extending paid paternity leave to four weeks and maternity pay would be extended to 12 months;

General employment

  • banning zero-hours contracts, unpaid internships and umbrella companies and give those employees on short hour contracts who regularly work more than their contracted hours, the right after 12 weeks to receive an updated contract reflecting the longer hours regularly worked;
  • granting equal rights to all workers (not just employees) from the first day of employment, and shifting the burden of proof for employment status, so it is assumed a worker is an employee unless the employer can prove otherwise;
  • abolishing the derogation loophole in respect of the Agency Worker Regulations, which currently allows an employer not to pay agency workers equally, under certain circumstances. Employment agencies and employers would be jointly responsible for enforcing agency worker rights;
  • introducing an “excessive pay levy” on salaries above £330,000. The Labour Party promises it will not raise income tax for those earning less than £80,000 but they would lower the threshold for the 45p additional rate to £80,000 and reintroduce the 50p income tax rate on earnings above £123,000;
  • abolishing Employment Tribunal fees;
  • repealing the Trade Union Act, and introducing collective bargaining on worker rights through unions in all different sectors. The Labour Party is committed to guaranteeing unions the right to access workplaces and would only award public contracts to companies that recognise trade unions;
  • conducting a public inquiry into blacklisting;
  • providing equalities representatives with statutory rights;
  • bringing back protection against third-party harassment;
  • abolishing the 2014 amendments to the Transfer of Undertakings (Protection of Employment) Regulations, which narrowed the protection of employees, during a takeover of a business;

Company reporting

  • introducing maximum pay ratios of 20:1 in the public sector and for companies bidding for public contracts;
  • maintaining the apprenticeship levy, but with more flexibility for employers on how the levy is used. The Labour Party will ring-fence more than £400 million from the levy, for small businesses and will require annual reporting on apprenticeships to ensure high quality. Targets would also be set to increase apprenticeships for the disabled and other disadvantaged groups;
  • creating a civil enforcement system to make sure organisations comply with gender pay auditing, introducing ethnicity pay gap reporting and creating a Ministry of labour to ensure that all rights are enforced;

 
Liberal Democrats

The Liberal Democrats’ proposed employment policies include:

Family friendly

  • making flexible working, paternity and shared parental leave a right from day one of employment and encouraging more employers to offer flexible working;
  • introducing an additional month of shared parental leave;
  • extending free childcare places to all two year olds to assist working parents

Recruitment

  • updating employment rights to better suit modern working practices, including the gig economy;
  • introducing a right for those on zero-hours contracts to request a fixed contract, and possibly introducing a right to request more regular working patterns, after a qualification period;
  • extending the Access to Work programme aimed at getting disabled people back into work;
  • campaigning to keep the UK in the Single Market, preserving freedom of movement within the EU and failing that, campaigning for the UK to guarantee the rights of EU citizens living in the UK and to make sure employment rights stemming from the EU are not undermined; and

General employment

  • creating a 'good employer' kitemark, covering areas such as paying a living wage, avoiding unpaid internships and using name-blind recruitment (the latter of which would be mandatory for public sector employers);
  • running an independent review into setting a genuine living wage for all sectors;
  • encouraging large listed employers to give employees the right to request shares and changing company law to allow German-style two-tier boards, including employees;
  • aiming to double the number of businesses hiring apprentices and support of the growth of sector-led national colleges for vocational education;
  • making sure that apprenticeship levy monies are all spent on training;
  • a 1% rise in income tax, to ring-fence an extra £6 billion of funding per year for the NHS.

Company reporting

  • abolishing the public sector pay cap and Employment Tribunal fees;
  • requiring large employers to publish the number of staff earning less than a living wage and pay ratios between top and median pay;
  • introducing pay gap reporting in relation to gender, race and sexual orientation;

 
Green Party

The Green party proposes:-

  • that “the introduction of a minimum wage of £10 by 2020 is a necessary step towards tackling inequality and poverty”;
  • to abolish zero hours contracts and would work towards a four day working week (maximum of 35 hours);
  • that 40% of all company boards should be women, to assist in ending the gender pay gap; and
  • to introduce a ‘wealth tax’ for the highest 1% of earners and introduce a higher rate of corporation tax for large business. The cap on employee national insurance contributions would also be removed by a Green Party government.

 
UK Independence Party

  • UKIP has said it will cut net migration to zero within 5 years by implementing a visa system for skilled workers and students and banning migration for unskilled and low- skilled workers.

 
Scottish National Party

  • The SNP have said that it will expand free childcare to cover 1,140 hours per year by 2022, (around 25 hours per working week) and make sure all those staff helping to deliver this target are paid at least the living wage; and
  • The SNP would not allow public procurement contracts to be awarded to companies engaging in blacklisting or exploitative zero-hours contracts.

 
Plaid Cymru

Plaid Cymru’s policies relating to workers include:

  • training and recruiting 1,000 more doctors and 5,000 more nurses for the Welsh NHS, over the next decade;
  • Welsh-specific visas;
  • free full-time nursery places for all 3 year olds, to help working parents;
  • introducing a “real, independently verified living wage”; and
  • protecting up to 200,000 jobs by maintaining trade with Europe, and guaranteeing the rights of Europeans currently living and working in Wales, post Brexit.

There are clearly a lot of differences between the employment policies of the main political parties and the way in which your business will operate may well be very different depending on the result of the General Election. We will update you with the actual policies being introduced by the next government after the General Election, as and when they are officially announced. In the meantime, if you have any questions about employment law or policy, please do not hesitate to contact me.

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