Conservative Party Reforms

The Conservative party manifesto states that they will build on existing employment law with measures that protect those in low-paid work and the gig economy. Examples include:

The creation of a single enforcement body and a crackdown on any employer abusing employment law, whether by taking workers’ tips or refusing them sick pay.

Ensuring that workers have the right to request a more predictable contract and other reasonable protections.

Encouraging flexible working and consulting on making it the default unless employers have good reasons not to.

Immigration

The Conservative Party propose an ‘Australian style’ points-based immigration system, post Brexit, ending free movement from European countries and with a focus on attracting skilled immigrants and filling vacancies in the UK. The system will include:

Bespoke visa schemes for new migrants who will fill shortages in public services including a NHS Visa and active recruitment of leaders in their fields in, for example, technology and science.

A student visa scheme to help universities attract talented students and to allow those students to stay on to apply for work in the UK after they graduate.

A start-up visa to attract entrepreneurs who want to start businesses in the UK.

Taxation

A commitment not to raise the rates of income tax, National Insurance or VAT.

A commitment not only to freeze taxes, but to cut them. The National Insurance threshold will be raised to £9,500 in 2020. The aim is to ensure that the first £12,500 earned is completely free of tax.

Proposals outside the manifesto

Other employment-related initiatives announced prior to the publication of the manifesto include:

Greater transparency over terms of engagement through compulsory written statements for workers

Tighter controls over the tax status for workers through the extension of the IR35 rules

Longer term proposals

A new target for the national living wage of two-thirds of median earnings and reduce the age threshold to 21, both by 2024

Curb the use of confidentiality and non-disclosure agreements

Greater onus upon employers to prevent harassment

Labour Party Reforms

The Labour Party intends significant employment law change, building on their 2017 manifesto. Proposals include:

Wages and employment rights

Introduction of a Real Living Wage of at least £10 ph for all workers aged 16 or over

Consideration of other ways to tackle low pay, including a Universal Basic Income

Establishment of a Ministry for Employment Rights

Full employment rights to everyone from day one on the job

Strengthening of protections for whistleblowers and rights against unfair dismissal for all workers, with extra protections for pregnant women, those going through the menopause and terminally ill workers

Ending bogus self-employment and creating a single status of ‘worker’ for everyone apart from those genuinely self-employed in business on their own account

Banning zero-hour contracts and strengthening the law so that those who work regular hours for more than 12 weeks will have a right to a regular contract, reflecting those hours

Increasing protection against redundancy

Giving statutory rights to equalities representatives

Setting up a Royal Commission to bring health (including mental health) and safety legislation up to date

Banning unpaid internships

Introducing four new bank holidays celebrating four patron saints’ days

Working time

Requiring breaks during shifts to be paid

Requiring cancelled shifts to be paid and proper notice for changes

Reducing average full-time weekly working hours to 32 across the economy, with no loss of pay, funded by productivity increases

Ending the opt-out provision for the EU Working Time Directive and enforcing working-time regulations

Keeping restrictions on Sunday trading in place and review unpaid overtime

Flexible working and family friendly rights

Giving all workers the right to work flexibly

Extending statutory maternity pay from nine to 12 months

Doubling paternity leave from two weeks to four and increasing statutory paternity pay

Introducing statutory bereavement leave, guaranteeing workers time off to grieve the loss of close family members or following miscarriage

Reviewing family-friendly employment rights, including rights to respond to family emergencies

Banning the dismissal of pregnant women without the prior approval of the inspectorate

Transforming the workplace and requiring all large employers to have flexible working, including a menopause policy, and consider changes to sickness and absence practices

Gender pay

Requiring employers to devise and implement plans to eradicate the gender pay gap – and pay inequalities underpinned by race and/or disability – or face fines

Taking action to close the gender pay gap by 2030

Requiring all employers with over 250 employees to obtain government certification on gender equality or face further auditing and fines. By the end of 2020, the threshold will be lowered to workplaces with 50 employees

Unions and collective rights

Removing restrictions on trade unions

Removing restrictions on industrial action

Strengthening and enforcing trade unions’ right of entry to workplaces to organise, meet and represent their members and to recruit

Workers on boards and other worker rights

Requiring one-third of boards to be reserved for elected worker-directors and giving them more control over executive pay

Requiring large companies to set up Inclusive Ownership Funds. Up to 10% of a company will be owned collectively by employees, with dividend payments distributed equally among all, capped at £500 pa, the rest being used to top up the Climate Apprenticeship Fund

Discrimination

Enabling positive action for recruitment to roles where employers can justify the need for more diversity and introducing a right for all workers to request flexibility over their hours from the first day of employment

Extending pay-gap reporting to BAME groups and tackle pay discrimination on the basis of race

Ending disability discrimination and updating the Equality Act to introduce new specific duties including disability leave, paid and recorded separately from sick leave

Other recent Labour announcements included proposals to:

5% ‘excessive pay levy’. Companies would charge companies a 2.5% levy on earnings above £330,000 and 5% above £500,000

McDonnell has stated that a labour government would ban private companies from bidding for government contracts if the pay ratio between their lowest and highest employee was more than 20:1

Set a maximum pay ratio of 20:1 in the public sector

Increase protection against unfair dismissal and redundancies, with a focus on rights for pregnant women

Maintain a ‘managed migration’ system.

Liberal Democrat Party Reforms

The focus of the Liberal Democrat campaign has been on stopping Brexit which would preserve free movement.

Additionally:

Development of the skilled workforce by introducing a new two-year visa for students to work after graduation and a major expansion of high-quality apprenticeships including higher apprenticeships

Change the law so that flexible working is open to all from day one in the job, with employers required to advertise jobs accordingly, unless there are significant business reasons why that is not possible.

Modernise employment rights to make them fit for the age of the ‘gig economy’, including by:

Establishing 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.

Reviewing the tax and National Insurance status of employees, dependent contractors and freelancers to ensure fair and comparable treatment.

 Setting a 20 per cent higher minimum wage for people on zero-hour contracts at times of normal demand to compensate them for the uncertainty of fluctuating hours of work.

Giving a right to request a fixed-hours contract after 12 months for ‘zero hours’ and agency workers, not to be unreasonably refused.

Reviewing rules concerning pensions so that those in the gig economy don’t lose out, and portability between roles is protected.

35 hours a week free childcare from when the baby turns nine months old

A £10,000 grant to every adult, payable in instalments over a 30 year period which would be added to a ‘skills wallet’ to pay for approved education and training courses. This would be introduced in 2021/22.The government would put in £4,000 at age 25, £3,000 at age 40 and £3,000 at age 55. Individuals, their employers and local government will be able to make additional payments into the wallets.

Tax incentives to encourage businesses to employ ex-offenders.