What do the general election results mean for HR managers in the UK?

Last week, the UK took to the polling stations to elect a Labour Government. The first Labour Government to be elected since 2010.

As a small business owner or HR professional, you may be wondering how the new Labour government will play into your HR function. 

Let's take a look at some of the potential changes to employment law... 

It’s important to note that PeopleHR write this post from a politically neutral standpoint. We only aim to inform you how the recent government changes may affect your SMB.

Zero Hour Contracts 

Labour’s manifesto included several proactive policies on zero-hour contracts. These policies are designed to more predictability and security surrounding income. Whilst details are yet to be confirmed, we understand that this will be based on a 12-week reference period and known as an ‘average hours’ contract.   

Flexible working  

During their campaigning, Labour also proposed to build up legislation regarding flexible working. Though information on this potential change is limited, it is said we can expect a limit on the ability to refuse flexible working requests.

Statutory sick pay 

To reform Statutory Sick Pay, Labour aims to remove the waiting period for sick pay and remove the lower earnings limit. With this in mind, both HR Managers and employers should be proactively considering the implications of this.

Unfair dismissals  

Whilst current law states that employees must have two years of service with an employer before they can claim unfair dismissal, Labour plans to give employees this right from the first day of employment. 

Redundancy 

Currently, UK law states that collective consultation must occur if redundancies reach 20 within 90 days (about 3 months) within each site or workplace. The Labour government plans for collective consultations to be triggered if 20 redundancies are planned across the entire business within 90 days.  

Employment status 

Labour hopes to simplify the current employment status system (employees, workers and self-employed), with just workers and self-employed.   

Be Prepared: Stay informed

The recent general election results are likely to be some changes in HR and employment law. While the full scope of these changes remain to be seen, staying informed about these potential shifts is crucial for HR managers and employers. By being aware and staying informed, you can prepare for what changes may lie ahead.

Written by Matthew Crook, General Manager - People SMB