The three manifestos have been published by the major UK national political parties and all contain employment law commitments. However, international law firm Eversheds believe these commitments will receive a lukewarm reception across the nations' workplaces.
A poll, conducted amount HR professionals in 50 organisations employing 100 or more employees, (predominantly private sector), indicated that unfair dismissal rights, employment tribunal procedure and retirement practices are the most important reforms sought by HR professionals. Unsurprisingly, when specifying the kind of reforms they wanted, nearly a third wanted a simplification of the law, followed by a reduction in existing rights. Interestingly, reducing employer penalties received very little support
Fiona Bolton, employment partner at the firm[1], comments: HR professionals are telling us that, in particular, they want employment law to be simplified or scaled back. They identified unfair dismissal protection, employment tribunal practice and procedure and retirement age and procedure as their overall top three areas for such reform. Yet, such wishes are unlikely to be realised, at least in the short term, according to the manifestos published this week.’
She explains: ‘While all three manifestos mention deregulation, they contain little detail and no mention of simplifying legislation. The manifestos refer to scrapping the current default retirement age of 65 years, but again provide no detail as to what will replace it or, in the case of the Liberal Democrats, how outright abolition would work in practice. More importantly, there is no prospect of a moratorium on new employment law or rights being scaled back given that all the manifestos contain commitments for new employment law, including extending the right to request flexible working and changing and extending family leave rights.
‘With a pipeline of new employment law already on its way, reflecting the last acts of the Labour government and including the Equality Act and extended paternity leave, it appears that many HR professionals will be denied their wishes for now.’
Michael Rubenstein[2] is not convinced any party would have an answer. He told The People Bulletin: ‘Every political party claims it will simplify employment law and every government runs into the problem that it is an inherently complex area. The last major attempt at ‘simplification" - the Dispute Resolution Regulations - was a fiasco.’[3]
Essential manifesto facts for employers
Labour party
- 200,000 jobs through the Future Jobs Fund, with a job or training place for young people who are out of work for six months, but benefits cut at ten months if they refuse to take part.
- Anyone unemployed for more than two years guaranteed work, but no option of life on benefits.
- A National Minimum Wage rising at least in line with average earnings, and a new £40-a-week Better Off in Work guarantee.
- More advanced apprenticeships and Skills Accounts for workers to upgrade their skills.
- A bonus tax, reduced tax relief on pensions for the best off, a new 50p tax rate on earnings over £150,000 and one penny on National Insurance Contributions[4].
A future fair for all can be downloaded here
Conservative party
- New businesses started in the first two years of a Conservative government pay no employer’s National Insurance on the first 10 employees hired during its first year.
- Default retirement age to be abolished.
- Flexible working rights extended to all parents with children under 18 and the facility for parents to divide parental leave between them.
- Back to work programme for all the unemployed including the 2.6m on incapacity benefits.
- Young unemployed referred to The Work Progrmme after six months on the dole.
- Funding for 200,000 apprenticeships and pre-apprenticeships.
- Creation of 400,000 work pairing, apprenticeship, college and training places over two years.
- Annual limit on numbers of non-EU economic migrants allowed to work in the UK.
An Invitation to Join the Government of Britain can be downloaded here
The Liberal Democrats
- Default retirement age to be scrapped.
- Requirement to accept anonymous job application forms to combat sex and race discrimination – starting with all employers of more than 100 staff
- Income tax threshold to be raised to £10,000.
- Pay audits for all organisations with more than 100 staff mandatory.
- Minimum wage for all workers over 16 (except those on apprenticeships) set at the same level.
- Creation of a work placement scheme with up to 800,000 places paying young people £55 a week for up to three months.
- Up front costs of adult apprenticeships fully met by the government.
- Reformation of the Access to Work scheme[5] so disabled people can apply for jobs with funding in place for adaptation and equipment needed.
- Flexible working extended to all employees, not just parents of children.
- Right of parents to share allocation of parental leave.
Change that works for you – building a fairer Britain can be downloaded here
[1] Further details about Fiona can be found here.
[2] See Michael Rubenstein's article ‘The Equality Bill – what you need to know’ in The People Bulletin, 2 July 2009
[3] Michael Rubenstein reflects on legislative developments over the last 25 years in the forthcoming 200th edition of Equal Opportunities Review
[4] See ‘Jobs tax becomes election minefield’ in The People Bulletin, 7 April 2010.
[5] Click here for more information about the Access to Work scheme.