Specialist Lawyer Examines Impact Of Labour’s Pledges On Retail, Leisure, And Hospitality Sectors

Following the Labour party’s launch of its manifesto today, a leading employment lawyer has stressed the critical need for early engagement with businesses in the retail, leisure, and hospitality sectors, should it be successful at the general election.

Charlotte Rees-John, who leads the retail, leisure, and hospitality sector group at Irwin Mitchell, emphasises the importance of pro-active consideration of the potential implications of Labour’s proposed ‘New Deal for Working People’, which is referenced in today’s manifesto. She says that such proactivity may be crucial to nurturing business expansion and avoiding any hindrance to the growth of these sectors should Labour (as is widely anticipated) come into power.

Expert Opinion

“In the face of impending legislative changes, it is paramount that the voices of businesses in the retail, leisure, and hospitality sectors are heard. These sectors are uniquely dynamic, and any legislative measures must be crafted with a deep understanding of their operational realities.” Charlotte Rees-John, partner at Irwin Mitchell

Lawyers at Irwin Mitchell have analysed the impact of Labour’s key manifesto commitments.

A Call for a Genuine Living Wage and the Removal of Age Bands: The proposed legislation includes the introduction of a genuine living wage and the elimination of age bands. Given the high proportion of workers on the 18-20 year old rate within these sectors, it is crucial for businesses to assess the financial implications of this change on their wage bills.

Rethinking Recruitment Amidst Unfair Dismissal Claim Reforms: With the proposed removal of the qualifying period for unfair dismissal claims, employers are advised to enhance their recruitment processes. This is to ensure the suitability of new hires, as the process of dismissal will become more complex post-employment. These changes are anticipated to lead to additional costs for employers.

Potential Impact on Staff Retention Rates: The reform could also influence staff retention rates within the sector. The current model’s service-based protections encourage employee loyalty. Without these protections, employees may be more prone to job changes, potentially resulting in an uptick in unfair dismissal claims.

The Right to Switch-Off: Balancing Flexibility and Worker Rights Employers often use group chats for store-wide communication, facilitating shift swaps or coverage with minimal notice. The proposed right to switch off from work-based communication outside of working hours could pose challenges to such flexible arrangements.

Single Worker Status and Zero-Hour Contracts: The proposed single worker status may present challenges for employers who depend on zero-hour contracts. Should workers on these contracts be entitled to bring unfair dismissal claims, the absence of work could be perceived as a dismissal. This would compel employers to consider redundancies or find justifiable reasons for dismissal, affecting the essential flexibility of hours and contracts for both parties.

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