The return of a Conservative Government without any sort of coalition should produce much more certainty about the future of employment law, over the next five years, than most of us were expecting. Having said that, the Conservative Party manifesto and election pledges do look to be the least ‘exciting’ of the proposals put forward by the other major parties, so maybe we will get some stability. It is difficult to see any of their plans being urgent, although it is possible that their plans for Trade Unions and Strikes may be prioritised if they are expecting some degree of ‘industrial unrest’, particularly in Scotland or on the railways. The new Business Secretary (see below) has said that this will be a priority.
Trade Unions/Strikes
The Conservatives pledge to – “protect you from disruptive and undemocratic strike action” in essential services, by requiring at least 50% turnout at the ballot and the support of 40% of those voting, to legitimise strike action. They will repeal the ban on using agency staff to cover for striking workers and tackle intimidation of non-striking workers.
Apprenticeships/Training
They hope to boost apprenticeships by 3 million over the next five years, to be paid for by benefit cuts. They also promise to use fines imposed on banks involved in rigging interest rates. This windfall will be used to “train young people and get them off the dole and in to work”.
Equality
The Government plans to increase opportunities for the disabled in the workplace by taking steps to help those suffering from long term, but treatable conditions, back into work. They intend to work for full gender equality, including enforcing the requirement that companies, with 250 or more employees, publish gender pay statistics, i.e. the difference between the average pay of male and female employees. They may pursue the matter of adding maternity pay for self-employed mothers. They are already committed to cap public sector redundancy payments at £95,000.
Pay
The Conservative manifesto commits the Government to be “on course for a minimum wage of over £8 per hour by the end of the decade”. It also pledged support for the living wage (2014 – London £9:15 and elsewhere £7:85) and encouraged businesses to pay it, when they can afford it. They are also likely to take steps to eradicate abuse of workers, such as non-payment of the National Minimum Wage.
Casual Workers
There is likely to be a ban on exclusivity provisions in zero-hours contracts, as well as enhanced information and guidance to improve transparency over terms. They also have promised measures to tackle illegal working and exploitation of migrant workers. This will involve implementing the Modern Slavery Act, requiring businesses to report on steps taken to be ‘slavery and trafficking free’, including in supply chains.
Volunteering Leave
A new policy promising employees a ‘volunteering leave’ entitlement will present challenges for larger employers. Public sector employers and companies with more than 250 employees will be required to give employees up to three paid days off a year to do voluntary work.
Tribunals
There will be no change to the Tribunal system (keep the current fee structure in place). This is, however, still subject to on-going litigation, so change may be forced on them.
Europe
Of far greater significance to employment law (and much else) is the promise to hold an EU in/out referendum on the UK’s membership of the EU by the end of 2017. Any re-negotiation of the UK’s terms of membership, and any withdrawal from the EU, has the potential for great upheaval in employment law, given the impact of EU law on employment rights in the UK.
Implementation
10 Downing Street has announced the Ministers filling the roles of relevance to employment matters. They are:
Employment Minister: Priti Patel
Secretary of State for Business, Innovation & Skills: Sajid Javid
Secretary of State for Justice: Michael Gove
Our Consultants would be pleased to advise you on any element of the issues arising from this newsletter.
