In a bold move set to transform the UK workplace, Labour has unveiled its much-anticipated employment rights bill. This legislation promises to be the most significant overhaul of workers’ rights in recent history, addressing long-standing issues and introducing new protections. Let’s delve into the key changes and what they mean for employees and businesses across the nation.
Day-One Rights: Immediate Protection for All Workers
One of the most striking reforms is the introduction of day-one rights for workers. This change will have far-reaching implications:
- Unfair Dismissal Protection: From their first day on the job, 9 million workers will now be protected against unfair dismissal, eliminating the previous two-year qualifying period.
- Parental Leave: Both paternity leave and unpaid parental leave will become day-one rights, benefiting an additional 30,000 fathers or partners and 1.5 million parents respectively.
- Bereavement Leave: Employers will be required to establish a policy for bereavement leave, offering support during difficult times.
Universal Sick Pay: A Safety Net from Day One
The bill introduces universal entitlement to sick pay from the first day of illness:
- Statutory sick pay will be available from day one, rather than day four.
- The current rate of £116.75 per week for up to 28 weeks will be “strengthened”.
- The lower earnings limit will be removed, potentially extending coverage to more workers.
Tackling Zero-Hours Contracts and ‘Fire and Rehire’ Practices
The legislation aims to provide more stability and security for workers:
- Zero-Hours Contracts: Over 1 million workers on zero-hours or low-hours contracts will gain the right to guaranteed working hours after a defined period of regular work.
- ‘Fire and Rehire’ Ban: This controversial practice will be prohibited except in the most extreme circumstances, such as when a business is at risk of complete collapse.
Flexible Working and Gender Equality Measures
The bill also focuses on creating more inclusive workplaces:
- Flexible working will become the default “where practical”.
- Employers must draw up action plans to address gender pay gaps.
- Support for female employees going through menopause will be mandated.
- Stronger protections against dismissal during pregnancy and after maternity leave will be introduced.
Enforcement and the Fair Work Agency
To ensure these new rights are upheld:
- A new enforcement body, the Fair Work Agency, will be established.
- This agency will consolidate existing enforcement bodies and oversee rights such as holiday pay.
Changes to Minimum Wage and Probation Periods
Additional reforms include:
- The Low Pay Commission’s remit will change to consider the cost of living when setting the minimum wage.
- Age bands for lower minimum wages for younger staff will be removed.
- A statutory probation period for new hires will be introduced, with a proposed limit of nine months.
What’s Not Included (Yet)
While the bill is comprehensive, some previously discussed measures are not included:
- Guidance (not legislation) on the right to switch off outside working hours.
- Legislation on ending pay discrimination (expected in a separate draft bill).
- A consultation on moving towards a single status of worker.
- Reviews of parental leave and carers’ leave systems.
Trade Union Rights
While not directly part of this bill, changes to trade union rights are being addressed through other means:
- Departments have been instructed not to enact the previous government’s minimum level of service bill.
- New rights for online balloting are expected to be introduced.
A New Era for UK Employment
Labour’s employment rights bill represents a significant shift in the UK labour landscape. While some measures will take time to implement fully, the changes promise to enhance job security, improve work-life balance, and create fairer workplaces across the country.
As these reforms unfold, it’s crucial for both employers and employees to stay informed and prepare for the changes ahead. Watch this space for further updates and analysis as the bill progresses through Parliament.
