Labour’s ban on late-night work emails risks lower pay, warns IFS

Labour is proposing a raft of pro-worker regulations, including the 'right to switch off' - Dan Kitwood/Getty Images Europe

Labour’s proposed ban on after hours work emails risks pushing down wages, the Institute for Fiscal Studies (IFS) has warned.

The IFS said Labour’s “new deal for working people” would raise costs for businesses and force many to either lower pay or hours to cope.

“It is important not to over-claim: these policies are not a free lunch for workers,” the think tank said. “We would generally expect much, and potentially close to all, of the cost of the benefit to be passed through to lower wages.”

Labour has proposed a raft of pro-worker regulations, including quicker access to statutory sick pay, making paternity leave available to fathers from their first day of employment and a “right to switch off”.

This means that employers are banned from requiring workers to read and respond to emails outside their contracted working hours.

The IFS said that these extra benefits represent costs to employers, which are ultimately passed on to workers.

When it comes to workers on the minimum wage, whose pay cannot be cut, extra benefits “might also slightly increase the risk of job loss for low-paid workers”.

The minimum wage itself has increased rapidly in recent years, jumping by £1.02, or 9.8pc, in April to £11.44 per hour for those aged over 21. The increase has already prompted some employers to curtail hiring and cut hours.

The IFS said: “While for some employees – such as those who particularly value paid sick leave or the right to take paternity leave – that trade-off will be welcome, for others it might not be.”

A Labour spokesman said: “The IFS has got this wrong. Fourteen years of pay stagnation has gone hand-in-hand with growing insecurity and poor enforcement.

“By providing more security at work, we will ensure workers have the confidence to move to better paid jobs. That’s why we will introduce a genuine living wage, extend sick pay and better enforce workers’ rights.

“Labour’s manifesto sets out a plan for wealth creation, to boost productivity, investment, and wages across the country.”

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