The CIPD urges Labor to engage with the HR profession ahead of employment law changes

Peter Cheese, chief executive of the CIPD, said he welcomed the new government but added:Labor has said it will put working partnerships 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 gets to work implementing a new skills agenda and the New Deal for working people.

“The New Deal is a complex area, so it is essential that the government engages with employers and the HR profession, who will be at the forefront of any changes in workplace regulations and practices.”

The most attractive aspect of the New Deal is the proposal to extend employment rights – including unfair dismissal protection, sick pay and parental leave – for all employees from their first day on the job. Cheese said the plansmust work in true partnership with employers and unions, through consultation and possible compromise”, calling for a workplace commission that could bring employers, unions and governments together to reach consensus.

But some employment lawyers sounded the alarm about the potential implications of the move. While noting that the new government had said any legislation would not act as a barrier to fair dismissals, Ben Smith, senior associate at GQ Littler, said the changes were “a significant change to the employment law landscape – and, if implemented, would come as a shock to many employers.

“Currently, terminations before two years of service tend to be more straightforward, but under these proposals, employers would have to implement a more formal termination process much more often. Employers would likely implement time and resource intensive on a scale that is radically different from the current status quo.”

Smith added that when coupled with proposals to double the time limit for bringing claims to an employment tribunal to six months, the result could be an even more significant backlog of tribunal cases in a system already struggling with workload after Covid.

Other aspects of Labour’s declared agenda after the elections will require further clarification. The party has promised to make it easier to recognize unions, including requiring employers to tell staff about the ability to join a union, and has pledged to tackle the thorny issue of employment status by simplifying a regime that has often been challenged through court cases.

More broadly, however, there was optimism about the potential for the new government to work with employers to initiate reforms. Cheese said there was an opportunity to make the apprenticeship fee system more effective, adding: “A reformed and more flexible levy could boost the provision of apprenticeships for young people and make it easier for employers to improve their existing workforce.”

Meanwhile, Neil Carberry, chief executive of recruiters’ body REC, said it was vital 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 choice about how and when they work,” he said. “Workers and businesses across the country understand the aims of Labour’s plan, but its implementation must support a growing economy and recognize that there is no better way to work.”

Both the REC and CIPD called for a comprehensive industrial strategy to support employment reforms and give businesses a wider understanding of the direction of the economic journey, to better assist workforce planning. “Effective skills and employment policies can help create a thriving economy that benefits individuals and businesses. The CIPD is ready to offer its expertise, and that of our profession, to support the new Government in shaping policies to create better jobs and better working lives,” Cheese added.