Proposed Employment Law Changes Could Further Hit Yard Owners

The new Labour government have released their plans for employment law reforms recently, and there are several points included that could have a substantial impact on yard owners, and the way they operate in terms of staffing and employment which in turn could have a heavy effect on their profitability.

The Labour Party made its New Deal for Working People a core part of its election manifesto. Two bills on employment law were announced back in July – an Employment Rights Bill and a draft Equality (Race and Disability) Bill.

A huge number of livery yards already struggle with business viability with increases for National Minimum Wage (NMW) and a general rise in operational costs over the last two years. Unfortunately, for those who are employers, some of the proposals could directly affect the running costs of their yards.

In an industry where casual or on-demand workers are commonplace, Labour plan to do away with ‘exploitative’ zero-hours contracts and bring in a new right to an employment contract that reflects realistically the regularly worked hours. This could heavily impact yards with casual workers, or those that work on a flexible or ad-hoc basis and could potentially increase minimum outgoings for wages. This raises fears that many on zero-hour contracts may find it simpler to switch to self-employment even though this would be incorrect.

The National Living Wage (NLW) was increased significantly in April 2024, but the new government are seeking increased changes. They have made promises to remove the 18-20 age band, meaning a likely higher rate for this age group going forwards. This could particularly hit the equestrian industry hard where a large proportion of employees fall into this age bracket.

To have ‘Working Pupils’ have long been an option for livery yards and riding schools. An unpaid employee who works on the yard not for payment, but often in return for training, accommodation and livery for their horse. Whilst not a legal employment status, the term ‘working pupil’ has been controversial for some years with many employers not fully understanding the responsibilities and legal obligations of offering such a role. However, given Labours proposals to ban unpaid internships under the reforms, this option will likely become a thing of the past.

The reforms also touch upon proposed statutory rights for bereavement leave and carers leave, as well as reviewing the current parental leave system. The latter with suggestions to make parental leave a statutory right from day one, as opposed to the current eligibility only after 6-months of employment. Additionally, it is proposed to give a right to Statutory Sick Pay (SSP) from day one of illness and remove the current 4-day wait time. Again, the addition of extra leave permissions could affect the organisations and costs for staffing on yards.

It is also proposed to remove the waiting period for Statutory Sick Pay (SSP) It is important for equestrian employers to understand the rights of their employees, and their responsibilities as an employer. Whilst it can be tempting to cut corners or ‘bend the rules’ for the sake of cutting costs, failure to adhere to legislation could result in action being taken against you should you be reported by employers.

You can find a detailed breakdown of the full proposed policy changes here

For the sake of compliance, we would always recommend that employers in the equestrian industry, even with only casual or part time staff, join the Equestrian Employers Association to help them with their employment compliance, and assist them in their staff management.