Pay & employment
Introduction
A flexible labour market is critical so employers can continue to deliver good pay and conditions for employees while continuing to boost employment prospects. This section covers the Government’s plan to Make Work Pay and updates on the National Minimum and Living Wage rates.
Make Work Pay is a flagship plan of the Labour Government focusing on reforming the current employment rights landscape. The Employment Rights Bill (ERB) and the Equality (Race and Disability) Bill are two of the key means of delivering the Make Work Pay plan – please see below for more details.
Employment Rights Bill (ERB)
Proposed changes from the government that are under review:
- Establishment of the Fair Work Agency (FWA)
- Industrial Relations
- Collective Redundancy
- Zero Hours Contracts
- Ethnicity and Disability Pay Gap Reporting
- National Living Wage
For members:
You can find full details of the FDF’s positions on the ERB. This will be regularly updated as policy developments progress.
Further information
National Minimum and Living Wage (NMLW)
National Living Wage (NLW) and National Minimum Wage (NMW) rates are important considerations for FDF as it is relevant to the competitiveness of, and employment levels in, the UK food and drink sector.
In 2024, FDF called for the following in response to the Low Pay Commission (LPC) consultation:
- Maintaining the NLW at two-thirds median earnings – as recommended by the LPC
- Clarity on direction of travel for future minimum wage rates to help inform business planning
Members: The Low Pay Commission’s (LPC) 2025 consultation is expected imminently focusing on the NMLW rates for April 2026.
Equalities Disabilities and Race Bill – Mandatory Pay Reporting
The UK Government has recently opened a consultation looking at mandatory ethnicity and disability pay gap reporting for large, private and voluntary sector employers in England, Wales and Scotland. The FDF will respond in due course.
Proposals include requiring employers to report on:
- Overall disability and ethnicity pay gap breakdown
- Percentage of employees who did not disclose their disability or ethnicity
Members: For more details, read our full position paper.
If you would like any additional information, contact Tanya Barringer.
