Between 10 and 13 June 2024, three of the main political parties published manifestos setting out their policy pledges ahead of the general election on 4 July 2024. Key commitments made by the Conservative, Labour and Liberal Democrat parties that are of interest to employment lawyers are outlined below.
Conservative manifesto
The Conservative Party Manifesto 2024 includes pledges on pay, taxes for working people and changes to the meaning of 'sex' for the purposes of the Equality Act 2010 as follows:
- National Living Wage – to maintain the NLW in each year of the next Parliament at two-thirds of median earnings;
- tax – to reduce employee National Insurance contributions by 2% to 6% by April 2027 and abolish the main rate for self-employed people by the end of the Parliament. The manifesto also promises not to raise income tax; and
- sex and gender – to guarantee provision of single sex services and spaces, new primary legislation would be introduced to clarify that the protected characteristic of sex for the purposes of EA 2010 is confined to biological sex. In addition, the government would legislate to provide that an individual may only have one sex under UK law.
The manifesto also contains specific commitments to continue the following key trade union and welfare reforms initiated by the current government:
- minimum service levels during strike action – a new Conservative government would implement further MSLs for key public sectors under the statutory framework created by the Strikes (Minimum Service Levels) Act 2023. To date, MSLs have been established for passenger rail, ambulance, border security and fire and rescue services (see FC Feature 22 March 2024);
- fit note reforms – overhaul of the fit note process, as announced in the Autumn Statement 2023 (see FC Feature 22 November 2023) and outlined in the DWP's call for evidence launched earlier this year (see FC Feature 21 April 2024); and
- whistleblowing – as part of its wider plans to streamline oversight and accountability within the NHS, a Conservative government would carefully consider the implications of the review of the whistleblowing framework (see FC Feature 27 March 2023) and consult on a disbarring regime for NHS managers.
Labour manifesto
In its manifesto Change, the Labour Party pledges to introduce legislation within 100 days to fully implement the far-reaching employment law reforms described in Labour's Plan to Make Work Pay, published shortly after the election was called last month (see FC Feature 29 May 2024). It also commits to consulting on its plans with businesses, workers and civil society before legislation is passed.
The manifesto highlights some of the key policy proposals laid out in the Plan to Make Work Pay, including:
- contractual terms – a Labour government would ban 'exploitative' zero hours contracts and end 'fire and rehire' practices;
- new 'day one' rights – these will be introduced in relation to parental leave, sick pay and protection from unfair dismissal;
- equality at work – reforms to strengthen rights to equal pay for women and protections from maternity and menopause discrimination as well as sexual harassment. In addition to actions to tackle the gender pay gap, a Labour government would introduce mandatory disability and ethnicity pay gap reporting for large employers;
- collectivism – measures to strengthen the collective voice of workers, including through their trade unions. A fair pay agreement would also be introduced for the adult social care sector;
- enforcing rights – creation of a single enforcement body to ensure employment rights are upheld; and
- National Minimum Wage – changes to the Low Pay Commission's remit so that it takes into account the cost of living and the removal of 'discriminatory' age bands in the NMW to ensure all adults are entitled to the same minimum wage.
Other proposals briefly referred to in the Labour Party manifesto include:
- new Race Equality Act - to enshrine in law the full right to equal pay for ethnic minority people, strengthen protections against dual discrimination and root out other racial inequalities;
- equal pay - introducing the full right to equal pay for disabled people alongside improvements to employment support and access to reasonable adjustments; and
- carried interest - reform of the tax rules for carried interest arrangements commonly found in the private equity sector, which treat certain amounts paid to fund executives as capital gains rather than income. The Labour Party otherwise pledges not to increase NI contributions or income tax.
Liberal Democrat manifesto
The Liberal Democrat's manifesto For a Fair Deal sets out a broad package of reforms to modernise employment rights. Key election pledges include those set out below.
- Employment status – a Liberal Democrat government would create a new 'dependent contractor' employment status between employment and self-employment, with entitlements to basic rights such as minimum earnings levels, sick pay and holiday. The burden of proof in employment tribunals regarding employment status would shift from the individual to the employer.
- Family rights – reforms to give parents greater flexibility and choice, including:
- doubling statutory maternity pay and shared parental pay to £350 per week and increasing pay for paternity leave to 90% of earnings (with a cap for higher earners). An extra use-it-or-lose-it month for fathers and partners would also be introduced; and
- making all parental pay and leave day one rights and extending them to the self-employed. Large employers would also be required to publish their parental leave and pay policies.
- Contractual terms – a new right to request a fixed hours contract after 12 months for zero hours and agency workers, not to be unreasonably refused.
- Flexible working – a new right to flexible working for all workers and the right for every disabled person to work from home, unless there are significant business reasons why it is not possible.
- Pay – to compensate for fluctuating hours of work, a 20% higher minimum wage would apply at times of normal demand to those on zero hours contracts.
- Sick pay – wide-ranging reforms to statutory sick pay, including:
- making the system available to workers earning less than £123 a week;
- aligning SSP rates with the NMW; and
- making payments available from the first day of sickness absence rather than the fourth.
- New rights for carers – introducing paid carer's leave for employees with caring responsibilities. Caring and the experience of care would become protected characteristics for the purposes of EA 2010.
- Enforcing rights – establishing a single authority to enforce the minimum wage, tackle modern slavery and protect agency workers.
- Employee ownership – employees of listed companies with more than 250 employees would be entitled to request shares, which would be held in trust for employees' benefit.
- Tax – when public finances allow, reducing the income tax burden by raising the tax-free personal allowance. The off-payroll working rules in IR35 would be reviewed to ensure the self-employed are treated fairly.
First published on the Employment News Service on 18 June 2024.
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