The Election: Changing the HR Landscape

The Election: Changing the HR Landscape

In June the UK was preparing for a general election and a change to the political landscape was clearly visible on the horizon. A month later, the UK population has voted, a new government elected, and the Labour party is now responsible for how the country is run. For months, the manifestos had been scrutinised, battle lines drawn, and media focus was on all the headline grabbing, vote winning issues. But for those with a focus on how Human Resource management could be affected, let us now consider the impact proposed changes may make to employer and employee. Political persuasions aside, the HR professional must consider and prepare for a string of new policies and initiatives aimed at enhancing employee rights, improving workplace conditions, and promoting equality.

Headlines for HR

• Unfair dismissal rights from day one
• Statutory sick pay from day one
• Banning zero-hours contracts
• Increasing wages

Looking ahead, there is likely to be a big impact on employee rights and protections, seeing the introduction of policies that enhance job security, in particular stricter regulations on zero-hour contracts. HR departments will need to adjust their employment practices to comply with new rules, ensuring that contracts and working conditions meet heightened legal standards. Additionally, the new government is likely to push for higher redundancy pay and extended notice periods, affecting how HR manages redundancies and restructures.

Raising the national minimum wage is also on the cards and any increase will directly affect payroll budgets. HR professionals need to reconsider salary structures to ensure compliance, not just at the lowest pay scales but potentially across the entire organisation to keep wage differentials and avoid wage compression issues, which can so easily damage workplace morale. The Labour government will advocate for enhanced employee benefits, including more generous parental and bereavement leave, flexible working rights, and improved sick pay. HR departments may need to revise company policies to align with any expanded benefits, which could involve reconfiguring leave management systems, updating employee handbooks, and ensuring every employee is kept informed about their new entitlements.

The Labour party has policies that typically emphasise equality and anti-discrimination measures and HR departments could see new mandates aimed at promoting diversity, equity, and inclusion (DEI). This may also include stricter gender pay gap reporting, more rigorous anti-discrimination laws, and initiatives to boost the representation of minorities and disadvantaged groups in the workplace. HR will need to implement comprehensive DEI strategies, conduct regular training sessions, and ensure compliance with new reporting requirements. HR could also see an increase in government-sponsored training programmes and initiatives aimed at upskilling the workforce. As a result, they would need to collaborate with training providers, integrate new learning opportunities into development plans, and administer government grants or funding for employee education.

With a change of government, there are likely to be changes in immigration policy, particularly in relation to labour market access for non-UK workers. HR teams should keep themselves informed about new immigration rules and adjust their recruitment strategies accordingly. This could involve increased focus on domestic talent pools and greater investment in developing the skills of the existing workforce.

Amid all the change, the promotion of work-life balance and employee wellbeing will remain a priority and all the positive steps taken over the last few years will hopefully be built upon and strengthened. Further to this, Labour wants workers to have the right to disconnect from work emails and practices after leaving the office, and to continue working flexibly from home. If legislation is passed, employees will have the right to disconnect from work and not be contacted by their employer outside of working hours, following the lead of other European countries that have introduced similar rights.

The months ahead will bring substantial changes to the HR landscape in the UK. HR professionals will need to be proactive in understanding and implementing new regulations and policies aimed at improving employee welfare, enhancing equality, and ensuring fair practices. By staying adaptable and informed, HR teams can effectively navigate these changes and contribute to a positive and compliant workplace.  In conclusion, if a Labour government means a “new deal for working people” is on the cards, then the HR department should ready themselves for change.

Article originally published on HR Grapevine July 2024.