As the new Labour government adjusts to office following its election on July 4th, we look at what the party's plans might hold for the UK's contractor workforce.
In our previous article (Party Policies. What do they mean for the UK's Temporary Labour Sectors?), we assessed some key themes of the Labour Party manifesto. But now, after a landslide election victory, what will it all mean for contractors?
Labour's Plan to Make Work Pay
According to Labour's Plan to Make Work Pay, the new government aims to bring significant changes for workers, focusing on providing greater security, fairness, and rights. Central to Labour's plan is transitioning to a single worker status, simplifying the current three-tier employment system. This change is designed to reduce the ambiguity surrounding employment status, making it easier for workers to understand their rights and for businesses to comply with legal obligations.
According to Rachel Reeves, the new Chancellor of the Exchequer, Labour's focus will be on growing the UK economy. However, many in the temporary labour sector believe that the single worker status could have implications for IR35 and the off-payroll working regulations, which, according to a recent IPSE article, have been seen as barriers to growth.
A recent Contractor UK article highlighted that “flexible, skilled contracting is highly productive and a necessary lubricant within a strong, fair and efficient labour market.” The article continued, “However, this may seem at odds with Labour's manifesto pledge to introduce more employment regulation through its Employment Rights Bill.”
Can Contractors Prosper Under a Labour Government?
Labour's single worker status will hopefully help to define genuine self-employment and could be the perfect opportunity for Personal Service Company (PSC) contractors to differentiate themselves.
Umbrella workers may also benefit from the Employment Rights Bill, which will likely provide additional rights such as day one statutory sick pay.
In terms of self-employment, Labour promises to support and strengthen the rights of self-employed workers, including the right to a written contract and protections against late payments and blacklisting.
Overall, the Labour government looks likely to introduce comprehensive reforms to improve workers' conditions and rights, aiming for a fairer and more predictable work environment. With a commitment to growing the economy and getting Britain building again, contract opportunities are expected to increase.
For further guidance and information, visit our website at https://www.champion-contractors.co.uk/ or follow us on LinkedIn.
Alternatively, you can contact the Champion Contractors team on 0161 703 2549 or email info@championcontractors.co.uk.