With the Labour party winning with a significant majority and forming a new UK government, changes to employment and payroll law will be easier than experienced by prior governments.
Tax and NICs
Whilst there is an aim for stabilising the UK economy, Labour promised to not increase existing PAYE income tax rate or National Insurance.
We will have to see what happens to the personal allowances, and how will the devolved government use their powers, will they align more closely?
Free primary school breakfast clubs and more nursery places
Families needing support in the workplace that have primary aged children are to have better access to breakfast clubs at every primary school in England. The devolved government will have their own responsibilities for setting policies in education that support parents.
They have promised 3,000 new primary school based nurseries.
Employment support
They propose to bring together JobCentre Plus and the National careers service to help people find employment.
Real Living Wage
They have pledged to turn the National Minimum Wage into the real living wage and remove adult age banding.
NMW is set to rise further than current levels and age differences abolished.
Exploitative contracts
Labour have promised to ban exploitative zero hours contracts. Often promoted as offering flexibilities that aid employees, many have been used by employers using one sided practices.
Employment Rights
Plans to introduce more employment rights from day 1 of employment.
Timelines for raising matter with Employment Tribunal’s are to be extended with more powers to tackle employers who exploit or unfairly treat their workforce.
Fire and rehire
New laws are proposed to protect workers from employers using fire and rehire. Something that was brought into the forefront by P&O ferries and others.
Protect state pension
Preserve the triple lock so that pensions rise with inflation and wages and underpinned by 2.5%.
Single enforcement body
A single enforcement body for employment rights with expanded powers is to be established.
A new deal for working people
The following image links to the Labour Party Green paper which outlines further details that align with the manifesto promises:
Timing?
Timing is the big question that Payroll and HR professionals now face. How quickly will change be seen.
Some changes could be quicker than others, will the new government align with tax years or announce an emergency budget pushing through changes more quickly.
Will changes to NMW be sooner and align with the November announcement if the Living Wage.
What is assured is that payroll and HR is heading for change.
PAYadvice.UK 5/7/2024 updated 22/7/2024