What will be the impact of the Conservative Party’s manifesto pledges on HR professionals in the leisure sector?

With the general election results now declared, it is worthwhile looking back at the Conservative Party’s manifesto pledges to consider the possible impact on HR professionals in the hotel and leisure sector.

1. ZERO HOURS CONTRACTS

A key pledge was that exclusivity clauses (being provisions which restrict the individual from also being engaged by any other employer) would be banned. We expect that legislation will be passed to effectively make such clauses unenforceable. If this change is implemented, you should review your contractual terms for anyone engaged on a zero hours contract.

2. MINIMUM WAGE

It is expected that national minimum wage will increase to £6.70 by Autumn 2015 (currently it is £6.50 for those aged 21 or over). Thereafter, it is possible that by 2020, the national minimum wage will have increased to over £8 per hour. There will also be encouragement for businesses to pay at least the “living wage”, which is calculated by reference to the cost of living in the UK. Currently this is £9.15 for London and £7.85 elsewhere in the UK.

3. ILLEGAL WORKING

Tougher labour market regulation was pledged to crackdown on illegal migrant working. It is not clear exactly how this will take place but you would be wise to ensure you have checked that all your employees have the right to work in the UK. There can be civil and potentially criminal repercussions if you have not carried out the appropriate checks.

 

The Queen’s Speech is expected to contain details on the above and many more employment changes, so look out for further developments when this is delivered on 27 May.

Goodman Derrick LLP has acted for clients in the hotel and leisure industry for many years and the Employment Department recognises that this sector is heavily reliant on its staff. If you have any queries regarding the above or need assistance with any employment law issue, please contact Katee Dias, who is a member of our Employment Department and specialist Leisure Sector Group, on 020 7404 0606 or at kdias@gdlaw.co.uk.

This guide is for general information and interest only and should not be relied upon as providing specific legal advice. If you require any further information about the issues raised in this article please contact the author or call 0207 404 0606 and ask to speak to your usual Goodman Derrick contact. Information correct as at 15 May 2015.