With a snap general election around the corner, the parties have once again trained their eyes on employment matters as fertile ground for winning votes. With the overload of information, what may happen to the way you work can be lost in a whirlwind of spin and soundbites. Paman Singh, a Legal Adviser at employment law specialists, Law At Work, has elected to pick apart the various pledges and promises.

Wages
“It’s the economy stupid!” Wages will be the ‘hook’ and at the crux of every party’s proposals to entice support. The Tories have declared the national living wage will rise “in line with average earnings by 2022”. In addition, they say they remain committed to increasing the rate to 60 per cent of median hourly earnings by 2020 which works out at roughly £8.75 per hour. Labour promise to increase the national living wage to at least £10 per hour by 2020. An important point to note is that Labour have stated this would apply to all workers over the age of 18. The Green Party similarly state that “the introduction of a minimum wage of £10 by 2020 is a necessary step towards tackling inequality and poverty”. This is a big increase on the current rates which are staggered for different age groups:

18-20 – £5.60 per hour

21-24 – £7.05 per hour

25+    – £7.50 per hour

The Liberal Democrats have not committed to a figure; but have indicated they would launch a review to work out what a “genuine living wage” should be and then implement it. Labour and the Liberal Democrats have also pledged to remove the 1 per cent pay cap on public-sector pay and ensure these workers receive pay rises in line with inflation.

In the Labour manifesto, the party pledges to introduce an excessive pay levy – the so called ‘fat cat tax’, in a bid to deter companies from offering very high salaries. It is thought this would only affect firms with “high numbers of staff” and would mean companies paying staff more than £330,000 will be required to pay 2.5 per cent surcharge whilst salaries above £500,000 will be charged at 5 per cent.

On Tuesday 30 May, the Scottish National Party released their manifesto and have indicated they will press for full devolution of employment policy. On the issue of wages, they echo Labour and are advocating for an increase in the national living wage to £10 per hour by 2020 as well as the removal of the 1 per cent public sector pay cap.

Workers’ rights
As workers’ rights and benefits have come under greater scrutiny than ever due to Brexit, the various parties are suggesting a host of additional benefits and rights. As indicated in their 20-point plan, Labour, particularly, have proposed to make significant changes in this area, radically strengthening workers’ rights. Some changes include: A total ban on zero hours’ contracts – as well as a new right for those who work as casuals but on regular hours to be given a contract reflecting those hours.

Adding four new public holidays to the calendar for the patron saint of each country “so that workers in Britain get the same proper breaks as other countries”. All workers would be entitled to these days off, irrespective of whether or not it is their nation’s patron saint. Enhancing statutory protection for women on maternity leave that face being made redundant and making the redundancy process more difficult in general to dissuade companies using job cuts in Britain as an easy cost saving mechanism. Increasing paid statutory paternity leave from two to four weeks. A ban on unpaid internships. Enforcing compliance with gender pay gap reporting by introducing civil penalties for non-compliance, going further than the current ‘name and shame’ approach.

‘Day 1’ employment rights. Currently, certain employment rights such as the right not to be unfairly dismissed and the right to a statutory redundancy payment are only applicable once an employee reaches two years’ service. These rights also only currently extend to employees; however, Labour would see these also include temporary and agency workers.

Labour’s manifesto suggest that they plan to remove the differences in protections between those classed as self-employed, a worker or an employee. For instance, legally it would mean that a worker is an employee, unless proven otherwise by the employer. Labour is pledging more changes relating to unions. Their manifesto suggests unions would be guaranteed access to workplaces to speak to members and sector specific collective bargaining would be introduced.

Whilst the Conservatives have not proposed as many reforms, there are still key proposals to be aware of, as Theresa May has indicated, there are more changes than ever before floated by the Conservatives in this area. An increase of the personal income tax exemption to £12,500. Replicating the gender pay gap reporting regime to implement an ethnic pay gap reporting scheme, although there is no indication yet whether this would be mandatory or voluntary. A tightening of the rules around shareholder control of executive remuneration. A proposed statutory right to a year’s unpaid leave from work to care for a sick relative. It is suggested that any such rights would mirror the maternity and adoption schemes currently in force.

Two weeks’ statutory leave for parents whose child has died. New protections for workers in short-term contracts or freelance work, as opposed to permanent jobs nicknamed the “gig economy”, although these remain unspecified at the time of writing.

Worker representation on boards for listed companies.

The Liberal Democrat manifesto also indicates they would introduce several changes to workers’ rights, with the manifesto stating that they intend to “modernise employment rights to make them fit for the age of the gig economy. Some of the other proposed changes include: A good employer kite mark being introduced, which would essentially be a quality certification, based on the living wage, avoiding unpaid internships (not banning, like Labour) and the use of name-blind recruitment to create a good employer benchmark; Preventing the abuse of zero hours’ contracts and giving workers the right to ask for a fixed contract after a certain period.  Refining the gender pay gap reporting obligations to highlight the ratio between top and median rates of pay.  An additional month of paid paternity leave, as a use it or lose it right.

A ‘Day 1’ right to request flexible working e.g. the worker’s right to ask for this from day one in their role.

A ‘Day 1’ right to shared parental leave.

The Scottish National Party manifesto also introduced a number of proposals around workers’ rights including;

Supporting the repeal of the Trade Union Act 2016.

A ban on exploitative zero hours’ contracts.

Arguing for the implementation of pay gap reporting on ethnicity and disability, with an enforcement mechanism for non-compliance, with the threshold to include businesses with 150 or more employees, down from 250 or more employees. Implementing a ban on separate workplace dress codes and having this enforced under the Equality Act 2010. A plan to enshrine the right to breastfeed at work. A review of all workplace leave entitlements, such as maternity leave and paternity leave.

Immigration and Brexit
The relationship between employment and immigration, post Brexit is similarly high on the agenda for this election. Employers want to understand immigration controls as Britain begins to extricate itself from the EU. The Liberal Democrats have announced they will support the continued freedom of movement of EU nationals and guarantee the rights of EU nationals working in the UK. Likewise, the Lib Dems say they would work with Liberal leaders in European countries, to get the same rights for UK citizens living in EU countries.

UKIP on the other hand sets out that it will cut net migration levels to zero, skilled workers and students would be required to obtain visas and for five years there would be a ban on unskilled and low-skilled workers. The Conservatives have not made such strong suggestions, but their manifesto indicates that they still want to reduce net migration from the current reported figure of 239,000 to the tens of thousands. They would also carry out the ‘Great Repeal Bill’, which would mean existing EU law would become entrenched in UK law to provide employers and employees with certainty. The Labour Party has indicated it would bring in legislation to ensure employers recruiting abroad do not undercut workers at home. Rather than carry out the Great Repeal Bill, Labour have suggested an EU Rights and Protections Bill which would continue to safeguard workers’ rights handed down by the EU.

Litigation
Finally, Labour have vowed to immediately scrap Tribunal fees, as have the Liberal Democrats. Since the introduction of fees, Tribunal claims have fallen by 78 per cent, so any such change would doubtless have a major impact on the employment law enforcement landscape. There are also currently strict time limits in which an employee can bring a claim against an employer. The Conservatives are silent on this topic. The SNP have previously indicated that they would abolish Tribunal fees, and the Scottish Government gained the powers to do so under the Scotland Act last year; however, the SNP have yet to take any action in this respect. Labour have also proposed an extension of the time limit to bring a claim in the case of maternity discrimination from three months to six months.

With such a rainbow of rights on offer, the parties contesting this general election are placing a strong emphasis on winning votes by attracting businesses and workers alike. It is clear that the contrast between the parties in some aspects is stark. Regardless of the outcome, it is certain that there will be many changes for employers to take into account moving forward.