The 2024 General Election result and employment legislation

This time next week we will know the name of the newly elected prime minister following what is a highly anticipated general election, so it is worth taking a look at what it could mean for employment law.

Whether Rishi Sunak remains in residence at number 10 Downing Street or as widely predicted, is required to vacate the famous residence to allow Sir Keir Starmer to occupy the iconic abode, it will have an impact on employment legislation.

One of the most recent polls, at the time of writing, showed that Labour had a commanding lead over the Conservatives (1 Cited 1.7.24)

And according to one leading bookmaker Labour appear set to return to power for the first time since 2010 (2) Cited 1.7.24  

Employment legislation is always a key feature in election manifestos for several reasons, which include:

Economic impact

Employment laws directly influence the economy. Policies on wages, working conditions, and workers' rights affect productivity, business costs, and consumer spending.

Each political party will have its own, and inevitably different idea, on what is considered to be the best way to manage the economy, making employment legislation a key issue.

Protection of workers’ rights

Ensuring fair treatment, safety, and appropriate pay for workers is an important issue for many of those who vote. Political parties address such concerns by proposing legislation aimed at improving working conditions, which can attract voter support.

Income

Employment legislation often includes measures to address income disparity, such as the living and minimum wage, which can appeal to a large section of the electorate.

Voter engagement

Employment issues are highly relevant because they affect a large portion of the population. By including employment legislation in their manifestos, parties can attract voters directly impacted by the policies.

With important implications for the economy, social justice, and individual livelihoods, employment legislation is a significant issue in the political battle for power.

Its inclusion in political manifestos reflects its obvious importance to voters and its impact on national prosperity and social stability.

So depending on which party emerges victorious from the 2024 General Election, it is worth taking a look at some key proposals from the two main parties, starting with the current government

Conservatives

The Conservative manifesto does not include substantial details on employment law, but it does have the following.

Equality Act 2010

The Act would be amended  and legislation introduced to clarify that the protected characteristic of sex in the Equality Act means biological sex. It will mean that in the eyes of the law an individual in the UK can only have one sex.

National Service

A pledge to introduce national service for all school leavers has already made headlines, and sparked much debate (3) cited 1.7.24  . It would see 18-year-olds given the option of a full-time military placement over 12 months or community service equivalent to one weekend per month for one year

National Living Wage

Is an obligatory minimum wage payable to workers in the UK who are aged 21 or older, the qualifying age was lowered from 23 in April.  The current rate is £11.44 per hour.

Legislation will maintain the National Living Wage in each year of the next Parliament at two-thirds of median earnings.

It is said that on current forecasts, that would mean it rising to around £13 per hour.

Fit notes

The manifesto does state if elected the party would:

‘Overhaul the fit note process so that people are not being signed off sick as a default. Currently, 94% of fit notes are being signed off as ‘not fit for work’. We will design a new system which moves the responsibility for issuing fit notes away from our hard-pressed GPs towards specialist work and health professionals, and we will test integrating this with the new WorkWell service to provide tailored support to help people stay in or get back to work.’

National Insurance

Employee contributions will be cut by an additional 2p and the main rate of Class 4 self-employed National Insurance contributions would end completely by the end of the next Parliament.

Class 4 National Insurance contributions are dependent on annual profits from self-employed income. You must pay  Class 4 contributions on profits between £12,570 and £50,270.

For the tax year 2024 to 2025, the rates are: six per cent on profits between £12,570 and £50,270; and two per cent on profits over £50,270.

Apprenticeships

The pledge is to support  world leading creative industries,  with apprenticeships seen as a key pipeline of talent. The party has vowed to work with industry to ‘…deliver a dedicated flexible coordination service so that everyone who wants to work in the film, TV, gaming and music sectors can work on live productions whilst benefiting from at least 12 months of secure training.’

Strikes

In fairly recent times there has been widespread disruption caused by public service industrial action. It has seen walkouts from teachers, civil servants, nurses, ambulance drivers, junior doctors and consultants, in protest against pay and working conditions.

The Conservatives would continue implementing the Strikes (Minimum Service Levels) Act 2023, which is intended to limit the impact of industrial action on public services and balance the ability of workers to strike with the rights of the public.

Labour

Says it plan will ‘make work pay. We’ll boost wages, make work more secure and support working people to thrive – delivering a genuine living wage, banning exploitative zero hour contracts, and ending fire and rehire’

Basic day one rights

The party says its New Deal will include basic individual rights from day one for all workers, ending the current system that leaves workers waiting up to two years to access basic rights of protection against unfair dismissal, parental leave and sick pay.

Minimum wage

The pledge is to make sure the minimum wage is a real living wage. The current age bands will be scrapped to ensure that every adult worker benefits.

The hourly national minimum wage rates in the United Kingdom vary based on age and whether an individual is an apprentice (4) . The current rates as of April 2024 for adults only are:

21 and over: £11.44

18 to 20: £8.60

Zero hour contracts

The contracts have faced heavy criticism. They do not guarantee a minimum number of hours and workers are effectively ‘on call,’ required to work whenever they are needed (5) cited 1.7.24 . Zero hour contracts are widely seen as exploitative.

Critics argue the contracts allow employers to undercut wages and avoid providing benefits such as holiday pay and pension contributions, which  undermines workers' financial security and overall well-being.

Labour says it will ensure ‘…all jobs provide a baseline level of security and predictability, banning exploitative zero hours contracts and ensuring everyone has the right to have a contract that reflects the number of hours they regularly work, based on a 12-week reference period.’

Fire and rehire

Also known as dismissal and re-engagement, occurs when an employer dismisses an employee and subsequently offers to rehire them under new terms and conditions. These new terms often favour the employer.

This practice is controversial because it puts employees in a difficult position: either accept less favourable conditions or risk losing their jobs.

This has been a contentious practice, especially in recent years. There are a number of  high-profile examples in which prominent businesses have faced heavy criticism for adopting this strategy.

British Airways faced a long-running dispute over fire-and-rehire tactics (6) cited 1.7.24. While energy giant British Gas also engaged in fire-and-rehire practices, leading to significant controversy .

Labour has pledged to ‘end the scourges of ‘fire and rehire’ and ‘fire and replace’ that leave working people at the mercy of bullying threats. We will reform the law to provide effective remedies against abuse and replace the inadequate statutory code brought in by the Government, with a strengthened code of practice’

Trade Union Legislation

Will be updated and see the removal of unnecessary restrictions on trade union activity,  ensuring industrial relations are based around good faith negotiation.