Employment Rights Bill – What New Laws Will Look Like

Ministers have unveiled the Employment Rights Bill, with the claim that getting the labour market moving again is essential to economic growth with one in five UK businesses with more than 10 employees reporting staff shortages.

The existing two-year qualifying period for protections from unfair dismissal will be removed. All workers will have a right to these protections from day one on the job if the Bill becomes law. However, the government intends to consult on a new statutory probation period which gives employers time to do a proper assessment of an employee’s suitability for a role. The government says this will give businesses the ability to take chances on hires while giving more people confidence to re-enter the job market or change careers.

 

28 reforms

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

Flexible working will be made the default where practical.

Large employers will also be required to create action plans on addressing gender pay gaps and supporting employees through the menopause. Protections against dismissal will be strengthened for pregnant women and new mothers.

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

 

Deputy Prime Minister

Angela Rayner says: “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“The UK’s out-of-date employment laws are holding our country back and failing business and workers alike.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.

 

Business Secretary

Jonathan Reynolds says: “It is our mission to get the economy moving and create the long term, sustainable growth that people and businesses across the country need. Our plan will give the world of work a much needed upgrade, boosting pay and productivity.   

”The best employers know that employees are more productive when they are happy at work.  That is why it’s vital to give employers the flexibility they need to grow whilst ending unscrupulous and unfair practices.” 

”The legislation will level the playing field where all parties understand what is required of them and good employers aren’t undercut by bad ones.” 

 

No to zero

The bill will end 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. 

The  Bill will repeal the Minimum Service Levels (Strikes) Act legislation that failed to prevent a single day of industrial action while in force.

 

Employment Rights Minister

Justin Madders says: “We know that most employers proudly treat their staff well. However, for decades as the world of work has changed, employment rights have failed to keep pace, with an increase in one-sided flexibility slowing the potential for growth in the economy. The steps we’re taking will finally right these wrongs, working in partnership with business and unions to kickstart economic growth that will benefit them, their workers and local communities. 

”Too many people find that the current system isn’t compatible with the realities of everyday life, whether that’s raising children or supporting a loved one with a health condition. The government wants to make sure that everyone can get on in work and not be held back because work isn’t compatible with important family responsibilities.”

 

Other measures

Within the Bill, it is planned to tackle low pay by accounting for the genuine cost of living when setting the minimum wage and the removal of minimum wage age bands. 

Outside the Bill and subject to consultations, Labour plans:

A Right to Switch Off, preventing employees from being contacted out of hours, except in exceptional circumstances.

Expanding the Equality (Race and Disparity) Bill to make it mandatory for large employers to report their ethnicity and disability pay gap. 

A move towards a single status of worker and transition towards a simpler two-part framework for employment status. 

Reviews into the parental leave and carers leave systems.

 

Picture: Business Secretary Jonathan Reynolds.

Article written by Cathryn Ellis
14th October 2024

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