Hey there, fellow small business owners! The UK general election is upon us, and if you’re like me, you’re probably wondering what all those promises mean for your business. With potential changes on the horizon, it’s essential to stay ahead of the curve. So, grab your favorite brew and let’s dive into the key employment law overhauls that might be coming our way. Trust me, staying informed now will save you a lot of headaches down the line.

1. Minimum Wage Adjustments

Remember when you had to revisit your budget because of a sudden wage increase? Fun times. Well, it looks like we might be heading there again.

Labour is pushing for a significant bump in the minimum wage to ensure a living wage for everyone. Meanwhile, the Liberal Democrats want to incrementally increase the minimum wage to a sustainable level, and the Conservatives plan to maintain and tweak the current living wage framework.

For small businesses, this means revisiting your payroll and financial planning. Start budgeting now so you’re not caught off guard when those paychecks need adjusting.

2. Worker Classification and Gig Economy Reforms

Ah, the gig economy – where side hustles are king. But with these changes, you might need to rethink how you classify your workers.

Labour is all about cracking down on zero-hour contracts and ensuring gig workers get proper benefits. The Liberal Democrats also want to provide better rights and protections for gig workers, while the Conservatives are looking to balance flexibility with worker rights.

If you have freelancers or gig workers, now’s the time to review those contracts. Make sure you’re clear on who’s an employee and who’s a contractor to avoid any legal mix-ups.

3. Enhanced Employee Benefits and Protections

Let’s talk benefits – because who doesn’t love perks? The major political parties have big plans here too.

Labour wants to ramp up employee benefits, including more paid leave and better pension schemes. The Liberal Democrats are focusing on healthcare and family-friendly policies, while Reform UK is also looking at fairer workplace benefits.

These changes could mean additional costs and administrative work for you. It might be a good idea to start planning how you’ll manage and afford these new benefits, so you’re not scrambling when the laws come into effect.

4. Flexible Working and Remote Work Policies

Remote work – the pandemic’s gift that keeps on giving. It’s become the norm, and it looks like it’s here to stay.

Labour is pushing for more flexible working rights and remote work options from day 1 of employment. The Liberal Democrats are all in on making flexible working standard too, and the Conservatives want to keep the flexible policies introduced during the pandemic.

For us, this means updating our workplace policies. Think about how you can support remote work while keeping productivity high. And remember, it’s not just about tools and tech – clear communication is key.

5. Diversity, Equity, and Inclusion (DEI) Initiatives

DEI is more than a buzzword – it’s essential for a thriving workplace.

Labour plans to enforce stronger DEI initiatives and tackle workplace discrimination. The Liberal Democrats are also committed to promoting inclusivity and diversity, and the Conservatives are proposing improvements in DEI as well.

Implementing DEI strategies might sound daunting, but start small. Hold open conversations, provide training, and review your hiring practices. It’s good for business and makes for a happier team.

For larger businesses (with more than 250 employees), there will be a need to report on more diversity data, so its wise to start gathering that information now if this affects you.

6. Changes to Redundancy and Dismissal Procedures

Let’s face it – layoffs are never easy. But fair and transparent processes can make a tough situation a bit more manageable.

Labour is looking to make redundancy and dismissal processes fairer for employees. We often rely on short service dismissals when things aren’t quite working out, however Labour is looking to remove the 2 year threshold for unfair dismissal claims, so ending employment for someone with short service won’t be as simple.

The Liberal Democrats want greater protection for workers facing redundancy, and the Conservatives aim to balance employer flexibility with employee protections.

These changes mean you’ll need to be meticulous about your redundancy and dismissal procedures. Clear documentation and fair practices are essential to navigate these tricky waters.

8. Compliance and Legal Advice

Navigating these changes can be a minefield, so staying informed is crucial. Keep an eye on updates and consider seeking professional advice.

Resources like ongoing education and legal assistance can be lifesavers. Having a service like MyHRAdvisor in place will help you stay ahead of any new regulations and avoid costly mistakes.


There you have it – a whirlwind tour of the potential employment law changes following the election. Whether it’s adjusting wages, embracing remote work, or enhancing employee benefits, staying proactive is the key. By planning ahead and keeping informed, you can navigate these changes smoothly and keep your business thriving. Here’s to being prepared and making the most of whatever comes our way!

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