King’s Speech 2024 signals rapid change to UK jobs market, but for contractors the jury is out if it’s for better or worse
Having already detailed much of its employment-related plans in its pre-election manifesto, it’s perhaps no surprise -- and perhaps a welcome surprise -- that there were no last-minute shocks from the new Labour government in yesterday’s King’s Speech 2024, writes Tania Bowers, a director at the Association of Professional Staffing Companies (APSCo).
What bodes well
At a high level, the positive takeaway from the King’s Speech is an emphasis on bolstering economic growth across the country, and this should create new opportunities for skilled freelancers and contractors in IT and other key sectors.
Hopefully the Labour government realises that contractors thrive in agile and evolving environments, and so their focus on driving more investment in new technology and the green skills agenda will boost the flexible workforce.
But what was also evident in King’s Speech is that Sir Kier Starmer’s administration has a clear focus on banning exploitative employment practices and improving worker rights.
Changes to workers’ rights are afoot
In what has previously been referred to as the “most significant reform of employment rights” in a generation, King’s Speech 2024 confirms a new Employment Rights Bill will be introduced to ban exploitative zero-hours contracts.
While this barring of zero-hours working wasn’t mentioned directly in the King’s Speech (curiously, it was mentioned in the government’s summary of the speech), we expect this legislative move to also include the introduction of ‘day one’ worker rights, and an end to ‘fire-rehire’ practices.
Consultations will take place on these reforms, but for the professional contract market, what most will hope – as indeed our organisation does – is that the new bill will clearly differentiate between the highly-skilled contract workforce and agency workers.
We expect that the prime minister will push ahead with the Employment Rights Bill at speed, and an announcement of the consultation (which will be run by the Department for Business and Trade) should be made very soon, if the bill is to land in the next 100 days (as intended).
The Fair Work Agency
Upholding new legislation is just as critical as getting a new bill through parliament.
So confirmation yesterday (in government notes following the King's Speech) that the Fair Work Agency is to be established -- "to strengthen enforcement of workplace rights," is a welcome move. This should ensure appropriate and existing employment rights get upheld.
The devil will be in the detail though regarding the creation of the FWA – which many will know by its previous name when it was floated to regulate umbrella companies, the Single Enforcement Body. Regardless of whatever label is ascribed to it, we will continue to engage with the Director of Labour Market Enforcement, Margaret Beels, who will play a key role in this new government body’s creation.
It is encouraging to note that throughout his speech the King referred back to ‘partnerships with businesses and people.’ While we all wait for further details, we certainly hope that this will include collaboration with contractors and employment industry bodies to ensure the Fair Work Agency is truly acting on behalf of the entire workforce, collectively.
IR35 Off-Payroll Working rules missing
While we were not expecting any announcements in King’s Speech 2024 in relation to the OPW rules, and certainly don’t predict any immediate reforms to IR35, the Labour party did pledge in its election campaign to consult on employment status.
Should this promise be acted on, there may be an opportunity to revisit IR35/OPW as part of the process of redefining genuine self-employment.
Almost needless to say, we would be contribute to any such IR35-related discussion document, call for views or formal consultation.
Skills, training and immigration
Starmer’s government has already acknowledged that access to critical skills is a core issue for the country.
While steps such as establishing Skills England and reforming the Apprenticeship Levy to create a Growth and Skills Levy will be beneficial, the highly skilled contract market is in need of additional support.
We believe that the UK would benefit from an increase in scope of the Apprenticeship Levy to include agency workers and the self-employed, with the effect of upskilling these vitally important workers or providing essential training for their roles. The flexible workforce plays a critical role in the strength and resilience of the economy, but these key professionals are often overlooked in up and reskilling opportunities. So frankly, they need more support from the government.
In his speech, the King also referenced plans to improve the trade and investment relationship with the EU. Again, full details are still to be published, yet we have previously called for any such trade conversations to include skills and labour migration deals.
A globally mobile and flexible workforce will benefit multiple economies and any new deals must accommodate this. We will continue to push for a short-term visa (less than a year) for highly skilled independent workers to fill immediate skills gaps in the UK.
King’s Speech 2024: in a nutshell for the contractor market…
Overall, the current political ‘tactics’ deployed with the labour market-related actions already taken, indicate that the new government is working at pace to implement changes to the country’s employment market. There are potentially positive opportunities on the horizon for contract workers and the self-employed, but this will depend on the fine print in proposals which will no doubt emerge in the coming days and weeks. The contractor sector must then be out in force to have its say.