Planning for Change
The Labour Party has committed to introducing an Employment Rights Bill to Parliament within 100 days of them coming into power.
Published: September 16th, 2024
2 min read
The Labour Party has committed to introducing an Employment Rights Bill to Parliament within 100 days of them coming into power. It seems unlikely that adjustments to the National Minimum Wage will occur within this timeframe, however the Low Pay Commission have stated that when looking at the National Minimum Wage and the Government’s aim to abolish the 18-20 year old rate, they will look to achieve this by “taking steps year by year”, so the interim aim for 2025 is to further reduce the gap between the 18-20 rate and National Living Wage.
In addition, the new Government has updated the Low Pay Commission’s remit on the 30th July 2024 to encompass certain commitments made in their Plan to Make Work Pay. Of the most noteworthy the LPC have been instructed to recommend an increased National Living Wage rate to apply from April 2025 which, for the firs time, should take into account the cost of living.
These changes will have a considerable impact on business who rely on the younger workforce and pay the National Minimum Wage. It would therefore be sensible for employers to consider how the proposed changes will impact their organisation before they are implemented, as well as evaluating whether they possess the financial capacity to accommodate any increase to the wage bill.
It is clear that Labour feels very strongly about workers’ rights, and in particular the wages which they receive. They cite the creation of the National Minimum Wage as being one of the greatest achievements of the last Labour government. Consequently, a rigorous enforcement of the National Minimum Wage is anticipated. It is imperative that employers ensure that their systems and processes are coherent and fit for purpose to meet the requirements of the proposed changes to the National Minimum Wage and the changes to employment law generally.
For further information please contact Catherine Hare