At the last general election and during Labour's term in office, the issue of employment rights and related legislation was high up on the political agenda. Compulsory recognition of trade unions, family-friendly policies, the minimum wage and a large increase in the cap for unfair dismissal awards all formed part of the Labour government's Fairness at Work policy.
Perhaps the most high-profile development was the introduction of the national minimum wage. This is currently set at £3.20 an hour for those aged between 18 and 21, with a higher rate of £3.70 for over 21s. The Labour Party manifesto pledges to increase the latter to £4.10 in October 2001 and, subject to economic conditions, £4.20 an hour in October 2002.
The government's other major employment-related pledge is to increase statutory maternity leave from the current 18 weeks to six months, and, in addition, increase the rate of statutory maternity pay from £60 a week to £100. Fathers will also have a legal right to two weeks' paid paternity leave during which they will receive £100 a week.
Liberal Democrates
The Liberal Democrat manifesto pledges to introduce a minimum wage that will apply at the same rate to all those in work aged 16 and over. Although the Lib Dems are not specifying the level at which this rate will be set, they promise to review it annually.
In addition to their promises on the minimum wage, the Lib Dems pledge to introduce an equality act to fight discrimination on "whatever grounds, including race, sex, religion, sexual orientation, disability, age or gender identity". It is not clear what the extent of this act would be. However, in light of European moves in this area, this pledge may be a reflection of the Lib Dems' commitment to closer European connections.
The Lib Dems also intend to ban compulsory retirement, replacing it with an annual capability assessment for all those aged 60 and over. In addition, they promise to give the Health and Safety Executive new powers to investigate breaches of its rules. They also suggest that workers be granted a statutory right to consultation over key business decisions affecting their future, such as factory closures, reflecting measures already introduced in some European countries.
Conservatives
Unsurprisingly the Conservatives, who were opposed to a minimum wage when it was introduced, make no reference to it in their manifesto. Taking a different tack, the party focuses on tax; in particular, its pledge to repeal the IR35 tax laws that were introduced by the government. This could affect all consultants operating through personal service companies who fall outside the Construction Industry Scheme. It also pledges to increase the possible benefit for employees under approved share option schemes by extending the existing individual limit from £30,000 worth of options to £100,000, provided the employer business has a value of less than £100m.
What will perhaps have more impact on employers than any of these pledges is the continuing impact of European legislation. From Brussels we will see new gender, age and sexual orientation discrimination laws, extension of employee consultation obligations and protection of fixed-term workers from discrimination. Does this herald more red tape for smaller employers, whichever party gets in?
Postscript
Edward Goodwyn is a senior associate in Masons' employment group.
