Ministers have unveiled the Employment Rights Bill, introduced within 100 days of the new government coming to office, to help deliver economic security and growth to businesses, workers and communities across the UK.
The existing two-year qualifying period for protections from unfair dismissal will be removed, delivering, the government says, on a 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. 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 will also be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in.
Accompanying this will be measures to help make the workplace more compatible with people’s lives, with flexible working 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, 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.
Deputy Prime Minister Angela Rayner said:
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The UK’s out-of-date employment laws are holding our country back and failing business and workers alike.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.
UKHospitality said that the recognition of the importance of employment flexibility in the Government’s Employment Rights Bill has been welcomed, but comes alongside warnings that changes are not without cost and ongoing consultation is needed to avoid unintended negative consequences.
Protecting access to zero hours contracts is essential for hospitality workers and businesses and UKHospitality supports tackling any exploitative use of them. An opt-out for those that don’t want a fixed hours contract is crucial and allows flexibility to respond to employees’ lifestyles and business demand.
Plans for day one rights include pragmatic recognition of the need to make sure the job is a good fit for both employee and employer, and probation periods are an important way to allow this assessment.
Kate Nicholls, Chief Executive of UKHospitality, said:
“One of our primary messages during a long period of dialogue with Labour in opposition and in Government was to recognise the importance of flexibility to both workers and businesses, and I’m pleased it has done that today.
“However, these changes are not without cost. That’s why the Government should take its time to get the details right, through close consultation with businesses to avoid unintended consequences.
“Rushing to introduce measures too quickly would be the wrong thing to do and would increase the chances of inflicting damage to sectors like hospitality, an employer of 3.5m people and a provider of some of the most flexible roles in the economy.
“Protecting the right for employees to access zero hours contracts when they want them, instead of an outright ban, is a good example of how working together can avoid those potential pitfalls but still eliminate exploitative practices.”
“Zero hours contracts are the desired contract for 90%1 of people on them, who actively seek the flexibility to accommodate their lives as working parents, carers, students and many more who lead busy lives.”
“Its plans for day one rights also strike the right balance, with a statutory probation period allowing time for both employer and employee to determine if the job is a good fit.
“Ultimately, as it has done so far, working with business groups and unions to strike a balance for the good of businesses and workers alike will be critical to the success of this Bill. We look forward to working with the Government as it takes forward these plans.”
