What is Labour’s plan to Make Work Pay?

According to the Labour Party manifesto, the Plan to Make Work Pay will be implemented within 100 days of entering office. In line with their election campaign promises, this is expected to bring a wide range of reforms to employment law and UK working practices. This post is designed to provide employers, employees, and those looking for work with all the information they need to understand the coming changes. Although it might take time for the legislation to have a tangible effect on the landscape of work, it’s important to be prepared.

Explaining Labour’s Plan to Make Work Pay

On July 17^th 2024, it was announced in The King’s Speech that there would be a host of legislative changes brought in by the new Labour government. This Employment Rights Bill is set to include many of the points outlined in Labour’s Plan to Make Work Pay. The plan is designed to improve living standards for workers by expanding their rights, raising wages, and providing support to working people. As a result, it promises to overhaul some of the established employer responsibilities, warrant the need for new policies, and brings a new dynamic to the relationship between employers and employees. Making appropriate adjustments is vital for employers to maintain a good workplace atmosphere.

Read ‘What do Labour’s proposals for Employment Law Reform mean for UK employers?’ to gain insight into the full list of employment law changes that have been planned by the party.

What are the main reforms to Make Work Pay?

Some of the key changes to employment law that both employers and employees need to be aware of due to the Plan to make Work Pay include:

• An end to Zero Hours Contracts.
• Banning of ‘fire and rehire’ practices.
• Scope for workers to take bereavement leave.
• Easing the conditions for statutory sick pay (SSP).
• Creating a single status of worker.
• The right to switch off.
• Fair Pay – genuine living wage, removing discriminatory age bands.
• Statutory sick pay – removing the lower earning limits and the waiting period, making it available to all workers from day 1.

Employment law help for employers

So now you know what changes are due to come into effect, what should employers do to prepare? There are many key areas within employment law that will be affected by the Plan to Make Work Pay changes, with certain impacts being linked to the nature of the reforms. For example, Labour’s proposal to establish consistent rights for employees and workers will have a significant impact on TUPE processes. Whereas other instances of HR advice for employers are more straightforward, such as making allowances for increased redundancy rights. The order with which the changes come into effect might also alter the impact they have, meaning that employers could need to adapt their policies and procedures rapidly.

Fixed fee employment law services

When the government announces sweeping legislation, it can seem like we need to make adjustments immediately. However, to properly incorporate changes to employment law such as the Plan to Make Work Pay, employers must take their time and be thorough. This means consulting with legal expert in the field of employment. At Employment Law Services (ELS) Ltd, we help our clients stay compliant, manage risk, and support their business development. Get in touch with the team for an introductory chat.