UK and EU Election Results Complicate Employment Environment in Europe

In recent weeks, both the European Union and the United Kingdom concluded their elections, resulting in a notable shift in power dynamics. Meanwhile, France remains without a clear winner. The newly established governments are expected to introduce substantial changes to labor and employment legislation and regulations, presenting new challenges for global employers. 

In the UK, after winning the election and a majority in Parliament, the Labour party proposed changes covering almost all aspects of employment. If enacted, these changes would result in the most significant reform of employment law in decades. Major changes to watch, as identified by the Littler law firm, include:

• Union rights and collective bargaining: The Labour party intends to introduce a new requirement for employers to inform all workers of their right to join a union. Employers might need to include this information in all employment contracts. It also is considering allowing electronic balloting and workplace ballots for union recognition and strike action.  
  
  
• Pay gap reporting: The Labour party is expected to expand the pay disclosure obligation for ethnicity and disability and require an action plan for ANY gender pay gaps. 
  
  
• Right to flexible working: The current law allows employees to request flexible work but does not guarantee it. Labour plans to give more rights to employees and could create more challenges for return to office.  

The European Parliament is becoming a more influential player in law-making. We can expect more new laws on labor and employment over the next five years. According to HR Policy Global’s Tom Hayes, key changes in the pipeline include:  

• Continuation of the European Works Council Directive reform and a Directive proposal on the “right to disconnect” and remote work will be published by the Commission later this year.
  
  
• Extension of Parliament's initiatives such as limitations on subcontracting and workplace laws on Artificial Intelligence.  

Action plan: HR Policy Global offers various programs to prepare our members for all political changes. Check out our upcoming events here.