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Labour’s Employment Reform Unveiled: Insights for City of London Employers from the King’s Speech

6 35
17.07.2024

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Urban skyline with St. Paul Cathedral at sunset. London, United Kingdom.

In today’s King’s Speech [17th July 2024], King Charles III outlined the UK government’s legislative agenda for the new parliamentary season, highlighting Labour’s ambitious plans for employment reform, particularly on race equality and workers’ rights. Sir Keir Starmer, in his inaugural King’s Speech, reiterated his commitment to enhancing workers’ rights and empowering trade unions. The new Government has introduced 40 bills aimed at “accelerating Britain forward,” focusing on stimulating growth and implementing crucial reforms to workers’ rights. The forthcoming Employment Bill, launching within 100 days, marks the beginning of the “new deal for working people,” promising important changes aimed at elevating employment standards nationwide. As Labour’s ‘Make Work Pay’ initiative gains momentum, businesses in the City of London must prepare for a transformative legislative landscape promising enhanced worker compensation and benefits. With key changes looming, organisations of all sizes must adapt swiftly.

Recently, Starmer has moderated discussions on a crucial employment rights bill that sparked significant debate between the Labour leader and unions prior to the election. Despite the diluted nature of the workers’ rights proposals, they remain poised to be a focal point of contention between Starmer’s administration and the business community as the legislation progresses through Parliament. The King’s Speech also underscored the Government’s mission-led approach grounded in principles of “security, fairness, and opportunity for all,” prioritising economic growth.

Here, Sarah Jo Loveday FCIPD FRSA delves into the key proposals related to the employment reform initiative and their implications for employers.

Under plans to ban ‘exploitative’ working practices, the King emphasised the Government’s commitment to making work pay and eliminating exploitative practices as part of the Labour Party’s reform agenda. This aims to bolster employment rights and establish equitable working conditions.

The Employment Rights Bill introduces sweeping changes, including:

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