The dust is settling over a turbulent Westminster following the snap election and hung Parliament result.

When The Queen formally opened Parliament in June, Theresa May’s grand promise of the ‘greatest expansion of workers’ rights in history’ was put in doubt.  

A number of the Conservative manifesto pledges were excluded; new leave rights, worker representation on Boards, corporate governance and rights for parents and carers returning to work failed to make it into The Queen’s Speech.

There is no doubt that as Brexit tops the list of priorities, the government will focus on a smaller number of initiatives during this Parliamentary session.  However, those included contain a number of changes to employment regulation that could have a significant impact on employers.

What are the key points and what do they mean to you?

Immigration

Although not much detail was provided, one of the pieces of legislation for Brexit would establish new national policies on immigration.

Businesses are already sounding the alarm on access to talent, and concerns that sweeping changes to immigration will leave recruiters unable to access the talent they need.  If you are reliant on EU workers, take active steps now to engage with your employees on the subject of Brexit.  Offer them support and assistance to address areas of uncertainty for them and their families.  If action is not taken now, this could result in a significant skills drain for businesses in the near term, regardless of the Brexit deal reached.

The national living wage

The national living wage will increase in line with the current target of 60% of median earnings by 2020. After that, it will continue to rise in line with average earnings.

When the NLW was introduced, it was promised that it would reach £9 by 2020. Enforcement of the national minimum wage is also crucial, although there are no details to enforcement rules at present.

Public sector pay cap

Although the National Living Wage is getting a boost, salaried workers in the public sector may not be so lucky.  There is intention from the Government to make progress in tackling gender pay and reducing discrimination on all grounds but no reference was made to the public sector pay cap.

Modern work, employment status and the gig economy

Modern ways of working, including issues surrounding the gig economy and the employment status of individuals, have been a hot topic for some time. In October 2016, a review of modern working practices was commissioned and the imminently expected Taylor Review of employment practices will be considered by the Government to enhance rights and protection in the workplace.

Gender pay gap and discrimination

Earlier this year, mandatory gender pay gap reporting was introduced for employers with 250 or more employees. The Queen’s Speech promised that government will make further progress to tackle the gender pay gap and discrimination against people on the basis of their race, faith, gender, disability or sexual orientation, although age was not mentioned.

The next two years will bring about significant changes for employers, so if you need support give us a call on 01256 328 428.