UK workers could be set to benefit from "the biggest upgrade to rights at work for a generation" after the government, yesterday, formally unveiled its plans to change employment rights (October, 10, 2024).

 

A new Employment Rights Bill will ‘help deliver economic security and growth to businesses, workers and communities across the UK’, the government release has stated (Source: UK Government: Government unveils significant reforms to employment rights - GOV.UK (www.gov.uk)).

 

Stand-out elements of the bill will aim to introduce ‘day-one’ rights for workers, aim to level-up the playing field for 'zero-hours workers' and introduce measures to ehannce work-life balance and support working families.

 

The Bill has been delivered within 100 days of the new Labour government coming to office and is part of Labour’s plan to ‘help deliver economic security and growth to businesses, workers and communities across the UK’.

 

In support of the changes, Deputy Prime Minister, Angela Rayner said, yesterday:

 

“This government is delivering the biggest upgrade to rights at work for a generation, boosting pay and productivity with employment laws fit for a modern economy. We’re turning the page on an economy riven with insecurity, ravaged by dire productivity and blighted by low pay.

 

“The UK’s out-of-date employment laws are holding our country back and failing business and workers alike. Our plans to make work pay will deliver security in work as the foundation for boosting productivity and growing our economy to make working people better off and realise our potential. 

 

“Too many people are drawn into a race to the bottom, denied the security they need to raise a family while businesses are unable to retain the workers they need to grow. We’re raising the floor on rights at work to deliver a stronger, fairer and brighter future of work for Britain.”

 

What the bill means.

 

Two-year qualifying period for protections

The existing two-year qualifying period for protections from unfair dismissal will be removed, delivering on the government’s manifesto commitment to ensure that all workers have a right to these protections from day one on the job. 

 

The government will also consult on a new statutory probation period for companies’ new hires.

 

The government says that this will allow for a proper assessment of an employee’s suitability to a role as well as reassuring employees that they have rights from day one, enabling businesses to take chances on hires while giving more people confidence to re-enter the job market or change careers, improving their living standards.  

 

The bill will bring forward 28 individual employment reforms, from ending exploitative zero hours contracts and fire and rehire practices to establishing day one rights for paternity, parental and bereavement leave for millions of workers.

 

Statutory sick pay

Statutory sick pay will also be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in. 

 

A ’more compatible workplace’

Accompanying this will be measures to help make the workplace ‘more compatible with people’s lives’, with flexible working made the default where practical.

 

And ‘large employers’ will also be required to create action plans on addressing gender pay gaps and supporting employees through the menopause, and protections against dismissal will be strengthened for pregnant women and new mothers.

This is all with the intention of keeping people in work for longer, reducing recruitment costs for employers by increasing staff retention and helping the economy grow. 

 

A new ‘Fair Work Agency’ bringing together existing enforcement bodies will also be established to enforce rights such as holiday pay and support employers looking for guidance on how to comply with the law. 

 

Zero Hour Contracts

The bill will end what the government has referred to as ‘exploitative zero hours contracts’, following research that shows 84% of zero hours workers would rather have guaranteed hours.

 

They, along with those on low hours contracts, will now have the right to a guaranteed hours contract if they work regular hours over a defined period, giving them security of earnings whilst allowing people to remain on zero hours contracts where they prefer to. According to TUC research nearly two thirds of managers (64%) believe ending zero hours contracts would have a positive impact on their business. 

 

‘Supporting working families’

The Bill will to:

 

• change the law to make flexible working the default for all, unless the employer can prove it’s unreasonable.   

 

• set a clear standard for employers by establishing a new right to bereavement leave, with the entitlement sculpted with the needs of employees and the concerns of employers at the forefront

 

• deliver stronger protections for pregnant women and new mothers returning to work including protection from dismissal whilst pregnant, on maternity leave and within six months of returning to work

 

• tackle low pay by accounting for cost of living when setting the Minimum Wage and remove discriminatory age bands

 

 

• establish a new Fair Work Agency that will bring together different government enforcement bodies, enforce holiday pay for the first time and strengthen statutory sick pay. It will create a stronger, recognisable single organisation that people know where to go for help – with better support for employers who want to comply with the law and tough action on the minority who deliberately flout it.