Worker’s rights are to be upgraded, giving them protection from day one in a new job, under the new Employment Rights Bill, which was finally unveiled today (October 10).
The government says its ‘landmark’ 28 reforms show a ‘pro-business, pro-worker’ approach that will help drive growth in the economy and support more people getting into secure work.
The existing two-year qualifying period for protections from unfair dismissal will be removed, 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. It says 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.
In addition, zero-hours contracts will end as well as fire-and-rehire practices to ensure 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 make flexible working 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.
The government says this is all being done to keep people in work for longer, reducing recruitment costs for employers by increasing staff retention.
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Deputy Prime Minister Angela Rayner says: “The UK’s out-of-date employment laws are holding our country back and failing business and workers alike.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.”
The Make Work Pay Plan doesn’t stop with this bill. The government has also published a Next Steps document that outlines reforms it will look to implement in the future.
Subject to consultations, this includes:
• A Right to Switch Off, preventing employees from being contacted out of hours, except in exceptional circumstances.
• A strong commitment to end pay discrimination by expanding the Equality (Race and Disparity) Bill to make it mandatory for large employers to report their ethnicity and disability pay gap.
• A move towards a single status of worker and transition towards a simpler two-part framework for employment status.
• Reviews into the parental leave and carers leave systems to ensure they are delivering for employers, workers and their loved ones.
Experts say that much of the detail in these proposals is still to be worked out so many of the reforms will not occur until 2026.
In its announcement, the government referred to delivering ‘two-sided flexibility’ and Association of Convenience Stores chief executive, James Lowman, says this already genuinely exists in the convenience sector, which employs almost half a million people across the UK, with over 95% of colleagues in stores on permanent contracts.
“We welcome the intention of the Bill in providing additional security for colleagues but have concerns about measures that impose unnecessary processes and procedures for employers that are already doing the right thing. We are committed to working with the government to ensure that the measures in the Bill are pro-worker, pro-business and pro-investment.”
Lowman says the ACS has been speaking with its members about the proposals for a number of months, and their biggest concern is how new sick pay rules can help promote rather than reduce attendance at work.
“In a tight labour market with a high proportion of the workforce unable to work due to illness, we need to support those people while giving confidence to businesses that the people they employ will come to work if they are able to. In shops employing two or three people on shift at any one time, staff absence can see a business grind to a halt. We welcome the government’s forthcoming consultation on statutory sick pay and will be highlighting our concerns to ensure that the new rules balance the needs of both workers and businesses.”
Helen Dickinson OBE, CEO of the British Retail Consortium, says that many of the provisions in the new bill, such as including stopping exploitative contracts and offering flexibility in employment, are things that responsible retailers already do. “Introducing these standards for everyone means good employers should be competing on a level playing field. We look forward to engaging the government on the details, including around seasonal hiring and the use of probation periods.”
Stephen Simpson, content manager - employment law and compliance at Brightmine, says the removal of the two-year qualifying period for unfair dismissal claims is a key concern. “Previously, this rule allowed employers more flexibility in managing underperforming staff with less than two years’ service. However, under the new Bill, while companies can still use probation periods to evaluate new hires, they will need to demonstrate that a fair process has been followed from the outset.
“This change may not seem drastic, but it increases pressure on HR teams to juggle multiple moving parts while dealing with the potential fallout of line managers not following the correct process. If dismissals are not managed properly, businesses could face a rise in tribunal claims, further straining already overstretched HR teams.”
Simpson says, therefore ,that the key is not to wait: “Employers must act now before the legislation comes into force. Our advice is to conduct an audit of your current policies and processes and ensure that all managers are trained in how to effectively manage the performance of employees. This will ensure that when the law changes, the organisation is in the best place to avoid any possible challenges.”
