The CIPD has welcomed a new British government after Labour’s landslide victory in the general election, but he shares the view of other experts and business groups that Sir Keir Starmer’s relatively ambitious programme for employment reform requires closer collaboration with employers.
Labour’s majority of over 170 seats means the party should be able to implement its key policies relatively quickly. In addition, there are a number of bills in the pipeline that will affect the citizen’s profession. The text could be included in the Speech from the Throne on 17 July.
Peter Cheese, director of the CIPD, said he welcomed the new government, but added: “Labour has said it will put partnership with employers and unions at the heart of its plans to transform the economy. The next 100 days will be a crucial test of that promise as it begins implementing a new skills agenda and the New Deal for Working People.
“The New Deal is a complex area, so it is crucial that the government engage with it. with employers and the HR sector, who will be at the forefront of any changes in workplace regulations and practices.”
The most striking aspect of the New Deal is the proposal to expand labor rights – including protection against unfair dismissal, sick pay and parental leave – to all employees from their first day on the job. Cheese said the plans “should be developed in a genuine partnership with employers and trade unions, through consultation and possible compromises,” calling for a workplace commission that could bring together employers, trade unions and governments to build consensus.
But some employment lawyers raised alarms about the potential implications of the move. While noting that the new government had said legislation would not hamper fair dismissals, Ben Smith, senior associate at GQ Littler, said the changes were “a a significant shift in the employment law landscape – and if implemented, it would come as a shock to many employers.
“Currently, dismissals before two years of employment are typically simpler, but under these proposals, employers will be required to implement a more formal dismissal process much more often. Employers will likely have to implement time- and resource-intensive processes on a scale that is radically different from the current status quo.”
Smith added that, coupled with proposals to double the time limit for lodging claims with an employment tribunal to six months, the result could be an even greater backlog of employment law cases in a system already struggling to cope with the workload following the COVID-19 pandemic.
Other aspects of Labour’s announced post-election agenda will require further clarification. The party has pledged to make trade union recognition easier, including requiring employers to tell staff about the possibility of joining a union, and has promised to tackle the thorny issue of employment status by simplifying a regime that has often been challenged in tribunal cases.
More broadly, however, there was optimism about the new government’s potential to work with employers to deliver reforms. Cheese said there was an opportunity to make apprenticeships more effective, adding: “A reformed, more flexible levy could increase the supply of apprenticeships for young people and make it easier for employers to upskill their existing workforce.”
Meanwhile, Neil Carberry, chief executive of recruitment organisation REC, said it was vital that flexible working was properly enshrined in law and understood by government.“The labour market has changed over the last few decades – workers obviously need to be treated well, but that also means they have the choice and ability to decide how and when they work,” he said. “Workers and businesses across the country understand the aims of Labour’s plan, but its delivery must support a growing economy and accept that there is no single best way to work.”
Both the REC and CIPD called for an overarching industrial strategy to support employment reforms and give businesses a broader view of the direction the economy is heading so they can better plan their workforce. “Effective skills and employment policies can help create a thriving economy that benefits individuals and businesses. The CIPD is ready to provide its expertise, and that of our profession, to support the new government in shaping policies to create better jobs and better working lives,” Cheese added.