In a recent interview, we explored the Labour Party’s new employment rights bill, which is being hailed as a major advancement in meeting essential campaign promises aimed at transforming workplace rights and improving employee compensation. Here’s a breakdown of the key elements of the legislation that many are eager to delve into.
**Day-One Rights**
One of the standout features of this bill is the introduction of immediate protections against unfair dismissal, which will benefit roughly 9 million workers. This marks a significant change from the previous requirement of two years of employment for such safeguards. The bill also provides instant rights to paternity leave and unpaid parental leave, adding to the pre-existing maternity leave protections. Importantly, a thorough review of all parental leave rights is planned as part of this initiative.
It’s expected that about 30,000 fathers or partners will now be eligible for paternity leave, while an estimated 1.5 million parents will experience enhanced flexibility thanks to the new right to take unpaid parental leave from day one. Furthermore, employers will be required to establish bereavement leave policies.
**Sick Pay**
The legislation proposes a universal right to sick pay starting from the first day of illness, shifting away from the current system that mandates a four-day waiting period. Under the new provisions, statutory sick pay will be set at £116.75 per week for up to 28 weeks, provided that employees meet minimum earning thresholds. Notably, the government plans to eliminate the lower earnings limit to bolster worker rights, though some may still encounter lower rates.
**Probation Period**
The government plans to consult on the establishment of a statutory probation period for new hires, allowing employees to claim unfair dismissal even during this timeframe. This initiative aims to facilitate smoother separations for roles that may not be the right fit. Current proposals suggest a maximum probation period of nine months, which could be extended based on feedback from the business community; however, trade unions are advocating for a six-month limit instead.
**Zero-Hours Contracts**
The bill aims to provide job security for over 1 million workers currently on zero-hours contracts, allowing them to request guaranteed working hours. Those who have maintained consistent hours over a specified period will be entitled to a guaranteed-hours contract, with the option to remain on zero-hours contracts if they prefer.
**Ban on Fire and Rehire**
In a significant move, the bill will primarily outlaw the contentious “fire and rehire” practice, preventing employers from terminating staff and then re-hiring them under less favorable terms, except in exceptional circumstances. This provision has raised concerns among unions, particularly since there will be allowances for businesses at risk of closure to modify employment terms.
**Flexible Working**
Under the new law, flexible working will become the default option where possible. Companies will be required to develop action plans to address gender pay gaps while providing support for employees during menopause. Additionally, enhanced protections against dismissal will be implemented for pregnant workers and those returning from maternity leave.
**Enforcement Mechanism**
A new enforcement authority, named the Fair Work Agency, is set to be created to unify existing enforcement systems. This agency will oversee compliance with various rights, including holiday pay; however, the full scope will not be defined until the bill’s provisions are finalized.
**Minimum Wage Adjustments**
The government aims to reshape the Low Pay Commission’s focus to ensure that minimum wage considerations reflect the cost of living. Furthermore, it plans to eliminate age-based wage disparities, which will lead to pay increases for many younger workers.
**What’s Not Included?**
Despite its ambitious goals, some elements of Labour’s original “new deal for working people” are noticeably absent from the current bill. Future plans include the implementation of at least 30 additional proposals, such as guidelines on the right to disconnect from work outside of hours, anti-pay discrimination legislation, and consultations regarding a unified worker status.
**Trade Union Representation**
Strengthening union rights remains a top priority, with various commitments set to be implemented. Labour’s Angela Rayner has urged government departments to resist enacting the Tories’ minimum service bill, while promising alterations to existing restrictions on unions.
These proposed changes signify a substantial shift in labor rights, sparking conversations about their potential effects on workers throughout the UK. As the bill moves forward, stakeholders and the public will closely monitor the consultation and implementation process.
