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With the National Minimum Wage (NMW) now almost fifteen years old, and with another increase pending on 1st April 2017 HMRC have issued a list of the most elaborate excuses they've been given by employers for not paying the appropriate rates:

Labour's Plan to 'Make Work Pay'

Alan Kitto

Ahead of the general election on 4th July 2024, the Labour Party has published its "Making Work Pay" document, which outlines significant proposed changes to UK employment law.

Here are the key points:

  • Genuine Living Wage: Labour plans to ensure the National Minimum Wage becomes a genuine living wage, reflecting the cost of living. They will involve removing discriminatory age bands so that all adult workers benefit equally; this means that all employees, irrespective of age, will be entitled to the same minimum hours rate of pay which can only be the current upper rate of £11.44.

  • Zero Hour Contracts: The party aims to ban exploitative zero-hour contracts, providing workers with a baseline level of security and predictability in their employment terms. Contracts will be required to reflect the actual number of hours worked, based on a 12-week reference period.

  • Fire and Rehire Practices: Labour intends to end the practice of ‘fire and rehire’, where workers are dismissed and then rehired on less favourable terms. A strengthened code of practice will be introduced to protect workers from such practices.

  • Trade Union Rights: Labour plans to repeal various anti-trade union laws, enhancing the ability of unions to organise and bargain collectively. This includes updating trade union legislation to promote good faith negotiation and cooperation between unions, employers, and the government. Employers will be required to advise employees that they can be members of a trade union of remind them of this right on a regular basis.

  • Sick Pay: Labour proposes to strengthen sick pay provisions to ensure that all workers receive adequate support when they are ill; this includes the removal of waiting days before statutory sick pay, meaning payment will start from the beginning of each period of absence.

The document also proposes the removal of the two-year window for unfair dismissal claims, allowing employees to challenge unfair dismissals from the first day of their employment, albeit mention has been made

This change aims to enhance job security and provide immediate protection against unfair treatment. Under the current system, employees must have worked for two years before they can claim unfair dismissal.

The proposed changes state that employers will be allowed to operate probationary periods to be able to assess new hires and that a dismissal at the at of a probationary period is potentially fair providing there are clear and transparent rules and processes.  There is no mention however of the maximum duration for a probationary period. This change is likely to be retrospective and apply to existing employees rather than just new starters.

Labour is also proposing to extend the window to be able to bring the majority of legal claims from three months to six months after the end of employment.

Labour's plan for a ‘right to switch off’ aims to establish a clear boundary between work and personal time, ensuring that employees are not obligated to engage in work-related communications outside of their designated working hours. This initiative is designed to promote better work-life balance, reduce stress, and enhance overall well-being.

By legally entitling workers to disconnect from work emails, calls, and messages during their off-hours, Labour intends to create a healthier, more sustainable work environment.

The policy seeks to address the growing issue of workplace burnout and mental health challenges exacerbated by the rise of remote working and the expectation of constant availability. Through this measure, Labour is advocating for a more humane and balanced approach to modern work practices.

These proposals are some of the most significant changes to employment law in a generation and, given the fact that they are asserting that they will look to make a lot of these changes within the first 100 days of being in government, employers should be thinking now about how these changes may impact their business.

If you’d like to read the full document, you can download a copy here.

For any help and advice on the above or any HR matter, please get in touch.