The Government introduced their Employment Rights Bill on October 10th, within 100 days of their arrival to office. The bill is more extensive than expected and while some measures are expected to come into force in 2025 others aren’t expected until 2026.
We also saw the release of the ‘Next Steps to Make Work Pay’ document, the aim of which being to set out a comprehensive vision for the future of people’s working lives.
Key topics covered by the Employment Rights Bill
Zero hour contracts: Workers on zero or low hour contracts would gain the right to guaranteed contracts mirroring the hours they actually work. The definitions which fall into this such as how it applies to agency workers is set to be covered in an upcoming consultation.
Flexible working rights: Intended to establish flexible working for all employees by only allowing employers to deny flexible working requests if they can demonstrate that doing so would be unreasonable.
Statutory sick pay: Statutory sick pay would become payable from the first day of sickness, rather than the current fourth day and barriers to sick pay based on earnings would be removed.
Extension of maternity pay: Maternity pay would be made available from the first day of employment as opposed to the current 26 week wait.
Unfair dismissal: Employees will have the right to claim unfair dismissal from day one of employment. An employer’s right to apply a ‘light touch’ dismissal which is likely to incorporate a statutory probation period will be covered in an upcoming consultation.
Other highlighted changes
Fire and rehire: Limits to ‘fire and rehire’ practices so they can only be used in extreme cases such as a real existential threat to the business’s survival.
Equality in the workplace: Action plans may be a requirement for large businesses to assess their equality including gender pay gaps.
More protection for trade union rights: Likely to include easier access to workplaces and more support for union representatives. Detailed consultations are expected on this change.
School support staff pay: The Bill proposes the establishment of a School Support Staff Negotiating Body to oversee Fair Pay Agreements in the sector.
Social care workforce: The Bill proposes the establishment of an Adult Social Care negotiating body to oversee the remuneration, terms and conditions of Social Care workers.
Fair work agency: The bill proposed the establishment of a Fair Work Agency in place to oversee and enforce Labour laws including those brought in by the new bill.
Single Worker Status wasn’t included
Government has realised that abolishing the distinction between ‘employees’ and ‘workers’ remains is a difficult task that will require much review, analysis and legal thinking together with wider industry and business consultation before any drafting or re-drafting of this aspect of employment law is feasible.
Planned consultations
There are planned consultation processes on various elements of the Bill meaning it is likely to change throughout its passing, zero hour contracts, statutory sick pay and fair pay agreements will all come under review allowing input from the industry.
As the Employment Rights Bill progresses through Parliament, it could bring change to contractors and agencies alike. As always Focused are committed to staying informed and supporting our clients through these changes. Keep an eye out for any content as we learn more about the Bills progression and consultations.
Related article: Labour Party Employment Rights Bill revealed
Labour introduced its key Employment Rights Bill to the Commons (on the 10th October), aimed at benefiting both the economy and employees by reducing unfair practices in the workplace and granting employees access to rights earlier in their career.
Deputy Prime Minister Angela Rayner stated, “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.”