The official State Opening of Parliament is an occasion draped in pomp and circumstance, and the 2024 iteration was no different – although it did mark the first under a Labour government for 14 years.

During his King’s Speech, King Charles III confirmed a plethora of new legislations covering the economy, housing, public infrastructure and – of most interest to anyone in HR – employment rights.

There was plenty for HR leaders and practitioners to chew over throughout, including banning ‘exploitative’ practices, enshrining pay equality, improving health and wellbeing, and developing skills.

The raft of pledges is just a starting point, with new legislation in full to follow. As the UK Prime Minister, Keir Starmer, noted later in the House of Commons, the hard work is yet to begin: “National renewal is not a quick fix.”

In practice this means that HR leaders and practitioners need to begin preparations for the new laws that will affect them.

“This is a government that sees the workplace as being key to improving the nation’s fortunes,” Gethin Nadin, Chief Innovation Officer at Benefex, tells UNLEASH.

“Throughout the campaign, Labour were clear that improving work would be central to their wider economic policy; from a new pensions bill, to a wider commitment equality and investment into the causes of poor health more support for those seeking work.”

Nadin adds that this is a King’s Speech that views employees as the “best way to economic recovery and overall development as a country”.

Here’s what HR leaders and practitioners need to know about what was announced and what’s coming.

Plans to make work pay

The key headline of the King’s Speech was a commitment to “make work pay” through the introduction of new legislation offering a “a new deal for working people to ban exploitative practices and enhance employment rates”.

This, of course, relates to the proposed Employment Rights Bill, which the new Labour government pledged to enact within its first 100 days in power during the General Election campaign.

The Bill will abolish “exploitative zero-hours contracts, end fire and rehire, and introduce basic employment rights from day one”.

These rights include flexible working, sick pay, parental leave and protection from unfair dismissal, as well as the commitment to ensure the “minimum wage is a genuine living wage.”

The Bill is the “biggest change we’ve seen in a generation”, Nadin comments.

While it “will inevitably mean more work for employers”, he cannot fault the government’s commitment to the research in this area.

“The more rewarded and protected people at work feel, the higher their engagement and productivity,” he adds.

Light on the details

Until the full Bill details are published there are questions as to how these will play out in practice, as highlighted by Ed Bowyer, partner at global law firm Hogan Lovells.

“We know that the Employment Rights Bill will ban “exploitative” zero-hours contracts but it doesn’t seem that there will be a complete ban,” Bowyer commented.

“Similarly, unfair dismissal will become a day one right – as expected – but it appears that there will be some flexibility allowing employers to use probationary periods to assess new hires.”

In the meantime, the “positive developments” should spur employers into “prompt action” said Stephanie Coward, Managing Director of HCM at IRIS Software Group.

But businesses will need to begin strategically working out how they will manage the change and associated increase in costs – whether that’s through passing price hikes on to customers or focusing on boosting productivity through digital transformation.”

Looking forward towards skills

Any HR practitioner worth their salt knows that skills have become a currency of their own.

Few would expect this to be a centerpiece of the Labour government’s plans, but there were some new initiatives announced in this space.

During his address, King Charles said the new government would “pursue sustainable growth by encouraging investment in industry skills and new technologies”.

While this is quite a vague statement at this juncture it does display an awareness that while technology innovation is a key aspect of growth, skill sets among the workforce need to develop in tandem.

One Bill that was confirmed concerning skills was the establishment of Skills England, which will have “a new partnership with employers at its heart”, with reform of the Apprentice Levy also confirmed.

Commenting on the announcements, Ben Wilmott, Head of Public Policy at the Chartered Institute of Personnel and Development (CIPD), said the government working in close partnership with employers and business bodies will be key to “boosting skills, employment and unlocking the UK’s economic potential.”

“We welcome reform of the Apprenticeship Levy into a more flexible Growth and Skills Levy,” he said.

“The CIPD have been calling for change in this area, on behalf of our members and businesses, for several years to help reverse the decline in apprenticeships for young people and make it easier for employers to use their levy funds to upskill their existing workforce.”

Willmott added that the introduction of Skills England can provide a “further boost to business skills investment” and ensure that “training and development is more aligned with business and learner needs.”

Pay equality for minority groups

Equality was another topic on the agenda for the new Labour government, specifically through the Draft Equality (Race and Disability) Bill – another legislation pledged during the election campaign trail.

Building on the introduction of mandatory gender pay reporting, the Bill sets out equal pay rights for people from minority ethnic groups and disabled people.

Employers with more than 250 staff will also be required to report on pay gaps for these groups among their workforces.

Sheryl Miller, founder and director of diversity training consultancy Reboot Global, tells UNLEASH that although the Bill is a positive development, she won’t be “popping open the zero-alcohol fizz any time soon.”

“The notion that DE&I lowers standards and the divisive ‘othering’ of certain groups, which has become common in recent years, particularly during campaigning, won’t disappear overnight and the impact of the US election, particularly on global employers cannot be ignored,” Miller explains.

Thus, efforts to address pay inequality may be hindered by the lingering effects of nationalism and anti-woke sentiment masquerading as ‘common sense.’”

Growth is based on good health

Much has been made in recent years of declining access to healthcare services for UK workers, which in turn has a direct impact on productivity.

As CIPD’s Willmott stated: “Health policy is economic policy, they can’t be treated in silos.”

As King Charles announced during his Speech, “actions will be taken” to get people back in employment following the impact of the COVID-19 pandemic.

Despite no further details on what those actions may be have been made available yet, but it is an acknowledgement from the highest levels of the lasting impact on worker’s health from the pandemic.

“Long-term health issues have a significant impact on people’s ability to work so it’s vital that the government takes steps to help people get into and stay in work where they are able,” added Willmott.

“It’s crucial that the government works with employers to prioritize employee health and wellbeing if we’re to tackle the dual challenge of a tight labor market and an ageing workforce with more complex health needs.”

There is also a direct tie into the Employee Rights Bill, which will protect worker’s rights on flexible working – a factor that is highly valued among younger workers for health and wellbeing reasons.

“We need to consider post-pandemic work patterns, where flexibility and a four-day workweek are becoming the norm, especially for Gen Z,” Miller explains.

“The key here is choice.”