The Government has unveiled details of an Employment Rights Bill, which will be introduced in Parliament later today (10th October 2024) which is a significant step towards improving job security and supporting workers. The Bill includes 28 individual employment reforms, for example, ending zero-hour contracts, introducing day one rights for paternity, parental and bereavement leave. This Bill highlights the Government’s commitment to creating a more equitable workplace.
Deputy Prime Minister Angela Rayner has described the Bill as ‘This is the biggest upgrade to rights at work for a generation, boosting pay and productivity with employment laws fit for a modern economy.’
How will the reform affect my sick pay?
As part of the reforms, statutory sick pay will be strengthened by cutting out the waiting period before sick pay kicks in. Sick pay will be from day one of absence and not day four. The Government say that this will provide greater financial security for workers. This change not only supports employee well-being but also promotes a healthier workforce, ultimately benefiting businesses and the economy as a whole.
What if I’m on a zero hour contract?
There will be an end to “exploitative” zero- hour contracts and workers on zero-hours contracts will be entitled to a reasonable number of shifts and will receive financial compensation if a shift is cancelled or cut short. The Government say that the change to zero-hours contracts will benefit over one million individuals by providing them with guaranteed working hours.
What about unfair dismissal?
The current two-year qualifying period for protection against unfair dismissal will be removed which ensures workers have a right to these protections from their first day on the job. There will be consultation on the rules for those in their probation period. The Government states that this change is expected to benefit nine million individuals who have been with their employer for less than two years.
Will gender pay gaps be addressed?
The reform also requires larger employers to develop action plans to address gender pay gaps and support employees experiencing menopause. Additionally, protections against dismissal will be reinforced for pregnant women and new mothers. The Government states that these measures aim to enhance workforce retention, lower recruitment costs for employers, and contribute to economic growth by keeping people in work longer.
The Bill will also introduce measures to end “unscrupulous fire and rehire practices,” strengthen flexible working where it is “practical” and day one rights to paternity and unpaid parental and bereavement leave.
Overall, it is the Government’s position that the improved employment standards will benefit not just workers but also businesses and overall employer growth, as create a positive cycle for both. These changes will help employees feel secure and valued, which can enhance productivity and drive increased efficiency.
A second reading of the Bill will take place on the 21 October 2024.
