The CIPD has welcomed the new British government after Labour’s landslide victory in the general election, but echoed the view of other experts and business groups that Sir Keir Starmer’s relatively ambitious program of employment-related reforms required a closer partnership with employers.
Labour’s majority of more than 170 means it should be able to implement its key policies relatively quickly, and a number of bills affecting the human profession are due to appear in the first 100 days, possibly appearing in the King’s Speech on July 17.
Peter Cheese, chief executive of the CIPD, said he welcomed the new government but added: “Labor said it would put working 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 commitment as he begins work to implement a new skills agenda and a New Deal for workers.
“The New Deal is a complex area, so it is essential that the government gets involved with employers and the HR profession to be at the forefront of any changes to workplace regulations and practices.”
The most interesting aspect of the New Deal is the proposal to expand employee rights – including protection against unfair dismissal, sick pay and parental leave – to all employees from the first day at work. Cheese said plans”it must be worked out in genuine partnership with employers and unions, through consultation and potential compromise,” calling for a workplace commission that could bring together employers, unions and governments to reach consensus.
But some employment lawyers sounded the alarm about the potential consequences of the move. Ben Smith, senior contributor to GQ Littler, noted that the new government had said any legislation would not act as a barrier to fair dismissal, saying the changes were ” a significant shift in employment law – and if introduced, would come as a shock to many employers.
“Currently, dismissals before two years of service tend to be easier, but under these proposals, employers will have 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 state.”
Smith added that, coupled with proposals to double the time limit for bringing employment tribunal claims to six months, the result could be an even greater backlog of court cases in a system already struggling with a post-Covid workload.
Other aspects Labour’s post-election agenda stated will require further clarification. The party promised to make it easier to recognize unions, including requiring employers to inform workers of the possibility of joining a union, and pledged to address the vexed issue of employment status by simplifying the regime, which has often been challenged by court cases.
More broadly, however, there was optimism about the new government’s potential to work with employers to initiate reforms. Cheese said there was an opportunity to streamline the apprenticeship levy system, adding: “A reformed, more flexible levy can support the provision of apprenticeships for young people and make it easier for employers to upskill their existing workforce.”
Meanwhile, Neil Carberry, chief executive of recruitment body REC, said it was vital that flexible working was properly legislated and understood by the Government. “The labor market has changed over the last few decades – of course workers need to be treated well, but that includes choice and opportunity in 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 one best way of working.”
Both the REC and CIPD called for an overarching industrial strategy to support employment reforms and give businesses a wider view of the direction of economic travel to better assist them in workforce planning. “Effective skills and employment policies can help create a thriving economy that benefits both individuals and businesses. The CIPD is ready to lend its expertise and the expertise of our profession to support the new Government in shaping policies to create better work and better working lives,” Cheese added.