National Insurance, the Employment Bill and industrial action are just some of the key issues being addressed by the new PM Liz Truss. Megan Parker, Trainee Solicitor at Napthens, outlines what this means for you.
On the 05 September 2022, Liz Truss became the leader of the Conservative Party and the UK Prime Minister. Below are four key commitments that she has indicated will form part of the Government’s new policy direction so far, along with details of what her leadership could mean for employers and employees.
Key Commitments:
- Industrial Action
The PM has pledged to introduce legislation making industrial strike action more difficult, including:
- Establishing minimum staffing levels during industrial strikes – to reduce the amount of disruption caused by industrial strike action. The healthcare sector is especially likely to see a minimum staffing threshold set
- Raising ballot thresholds supporting strike action – from 40% to 50% of members voting in agreement to strike action
- Increasing the notice period for strike action – from two weeks to four weeks
- Creating a ‘cooling off’ period after strikes – preventing unions from striking several times within 6 months of a ballot, without having to seek a new mandate from members
- Removing tax free payments – members striking would no longer be able to receive payments from Unions tax free, increasing the cost of strikes on members
- Repeal/Reform of EU Law
The PM has also pledged to evaluate all retained EU laws and repeal or replace those that are said to hold back the economy by the end of 2023.
Employment laws that would likely be impacted by this proposition include the Working Time Regulations, Agency Worker Regulations, TUPE and various health and safety regulations.
- The Introduction of the Employment Bill
We are still awaiting the long-promised Employment Bill. While some proposals, such as those relating to neonatal leave are now being progressed via Private Members’ bills, it seems quite unlikely that the Government will prioritise the implementation of the remaining measures expected to be included in the Bill.
Instead, this could well be overtaken by the review of EU retained law discussed above.
- National Insurance
The PM has reversed the National Insurance increase of 1.25% for working age employees, their employers and the self-employed that was implemented in April 2022 by former Chancellor, Rishi Sunak.
The Government will also cancel the planned Health and Social Care Levy – a separate tax which was coming into force in April 2023 to replace this year’s National Insurance rise.
What next?
Considering the PM has come into leadership during an extremely difficult and unprecedented economic situation, her HR priorities are expected to concentrate on supporting struggling businesses through the cost of living crisis and strengthening the economy as a whole.
Employers and employees will need to wait to see the full impact that Liz Truss’s leadership will have on employment law, and the details will continue to materialise as time passes.
