On October 10, 2024, the UK government unveiled the Employment Rights Bill, a transformative piece of legislation intended to enhance workers’ rights, improve working conditions, and foster economic growth. With this initiative, the government aims to strike a balance that benefits both businesses and employees, making significant strides towards a more equitable and productive workplace.
The Need for Change
The UK’s labour market has faced significant challenges in recent years, including staff shortages affecting one in five businesses with more than ten employees.
Outdated employment legislation has contributed to insecurity and low productivity, creating an environment where both workers and businesses struggle to thrive. The new legislation aims to address these issues head-on, providing a framework that is fit for the modern economy.
Key Features of the Employment Rights Bill
Ending Exploitative Practices: The bill will abolish zero-hour contracts and fire-and-rehire practices that have long been criticised for undermining job security. Workers will now have the right to guaranteed hours if they consistently work regular shifts, offering a safety net for those who rely on stable incomes.
- Day-One Rights: A major shift in employment law, the bill eliminates the two-year qualifying period for unfair dismissal protections, ensuring that all workers have rights from the very first day of employment. This change is expected to bolster confidence in the job market, encouraging more people to seek new employment opportunities.
- Probationary Periods: The government will consult on a new statutory probation period which will aim to allow for a proper assessment of an employee’s suitability for a role. The statutory probationary period will enable businesses to take chances on hires whilst reassuring employees that they have rights from day one, giving them confidence to improve their living standards by either changing careers or re-entering the job market.
- Enhanced Family Leave Policies: The legislation introduces parental and bereavement leave from day one, reflecting the government’s commitment to supporting families in balancing work and personal responsibilities.
- Strengthening Statutory Sick Pay: By removing the lower earnings limit and reducing the waiting period for sick pay, the bill aims to provide workers with more robust support during times of illness, reducing the financial strain on families.
- Promoting Flexible Working: Flexibility will be the default for all workers unless proven unreasonable by employers. This shift acknowledges the diverse needs of the modern workforce, making it easier for employees to manage family obligations alongside their careers.
- Establishing the Fair Work Agency: This new body will consolidate existing enforcement mechanisms to ensure that workers’ rights, such as holiday pay, are upheld while providing guidance to employers on compliance with the law.
A Collaborative Approach
Deputy Prime Minister, Angela Rayner, has emphasised that the reforms represent the most significant upgrade to workers’ rights in a generation. The government is committed to creating a fairer labour market that promotes both productivity and employee well-being. Business Secretary, Jonathan Reynolds, has echoed this sentiment, stating that happy employees lead to more productive workplaces, which ultimately benefits the economy.
Future Directions
The Employment Rights Bill is just the beginning. The government has outlined additional reforms under the “Make Work Pay Plan,” which includes proposals such as the Right to Switch Off, preventing after-hours communication, and addressing pay discrimination by requiring large employers to report on ethnicity and disability pay gaps.
Conclusion
The introduction of the Employment Rights Bill marks a pivotal moment in the UK labour market. By prioritising the rights of workers while also considering the needs of businesses, the government is laying the groundwork for a more secure, productive, and equitable future. As we approach the International Investment Summit, these reforms highlight the UK’s commitment to creating a thriving economy where both workers and businesses can flourish together.
Do you know how these changes will impact your business?
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Disclaimer
Please note this blog is for reference purposes only and is only accurate at which the date it was published. It does not constitute legal advice and should not be relied upon as such. Specific Legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any actions. Please contact us if you have any questions on enquiries@thrivelaw.co.uk.
