The Liberal Democrat Launched their manifesto on Monday this week. Often considered the middle ground of politics, it’s probably fair to say that in terms of employers and business, their manifesto lives up to that same status with what we would consider to be some pluses and some minuses. Whilst they admit they are unlikely to win a General Election, it’s worth paying attention to their manifesto as they will be in a position of influence should they regain the third political party standing as they predict.

We’re pleased to see some suggested reforms to the apprenticeship levy and SSP payments for small businesses but some of the proposed changed around zero hours contracts might be more than some businesses can bear. Below we’ve pulled apart these and other controversial recommendations.

Replacing the apprenticeship levy with a broader and more flexible skills and training levy: A big thumbs up from us for this one. The apprenticeship levy is currently only paid by businesses with an annual payroll of over £3million. It is refunded to employers but only if it is spent on apprenticeships, which is over restrictive and means employees who just need some general training could be missing out. If the underlying aim is to improve employee skills, it makes far more sense to give more freedom on how the money is spent, providing it is in some form of training.

Also note that the way the levy is set up, employers with less than a £3million payroll currently get relief from the levy; so don’t be surprised if the relief threshold is reduced at some stage and employers with payrolls of £2million and eventually less are required to pay it.

Boosting the take-up of apprenticeships, by guaranteeing they are paid at least the National Minimum Wage: Whilst this move would undoubtedly make apprenticeships more attractive to those taking them, meeting the minimum wage will make them less attractive to employers as they would be paying the same as any other worker on minimum wage but would have the restrictions and obligations that apprenticeships bring. The jury is still out on this one.

Creating new Lifelong Skills Grants for adults to spend on education and training throughout their lives: We like the sound of this but there’s pretty much zero details that we could see in the manifesto.

Modernise employment rights to make them fit for the age of the ‘gig economy’: We’ve spoken about the Gig Economy a lot in the past and how it needs some proper attention. Law makers have tended to move too slowly to keep up with the way this type of worker has evolved. Some proper guidelines for employers and workers alike would be welcome.

Setting a 20% higher minimum wage for people on zero-hour contracts: Zero hours contracts are being targeted by both the Lib Dems and Labour, the latter pretty much categorising them as ‘evil’. No-one has looked at them from the employees point of view as for some, people Zero hours is a perfect solution and banning them would cause more problems than they solve. With a 20% uplift on minimum wage, I suspect people would be queueing up to sign a Zero hours contract. Not sure they’ve thought this one through.

Shifting the burden of proof in employment tribunals regarding employment status from individual to employer: We’re not sure what exactly they mean by this but quite frankly we already waste enough time on tribunal applications that don’t stand much chance of being won and only submitted to cause more noise and nuisance. Employers don’t need any more hassle in this department.

Expand parental leave and pay, including making them day-one rights: We understand the sentiment here but this would open leave the system open to abuse as individuals could try to get a job solely to benefit from parental pay.

Align the Statutory Sick Pay rate with the National Minimum Wage: As the burden of SSP is carried by employers rather than the Government, this would be crippling for many employers. And where is the incentive to return to work?

Make SSP payments available from the first day of missing work rather than the fourth: The same as Labour. Again, this would be overly burdensome on employers and getting minimum wage for throwing a sickie might be too tempting for some employees.

Supporting small employers with Statutory Sick Pay costs: Again, this policy lacks any substance or detail in the manifesto but some help for small businesses in reclaiming SSP costs is a winner. It would be much needed too if SSP was paid at minimum wage levels.

A bit of a mixed bag the from the Liberal Democrats from an employer’s point of view. Of course, business and employment is one of many areas of policy upon which voters will be making their decisions this general election. As champions for employers however, we’re wary of the policies that will cause our clients, and ultimately us, more problems and headaches.

Whatever the election outcome, we’re expecting any new Government to want to make an impact within the first 100 days of office, so we’re likely to be busy making sure clients are compliant with any new legislation. Make sure you’ve got our number on speed-dial, ready to call us on 01452 331331 or send an email to This email address is being protected from spambots. You need JavaScript enabled to view it.