The Employment Rights Bill, 2024, which will be revealed later today, contains 28 reforms including a maximum probationary period of nine months. This is part of the draft legislation that was released by the government to ‘boost pay and productivity.
The government is consulting on a new statutory probationary period for new employees, which will allow for an accurate assessment of the employee’s suitability to a job.
The two-year qualification period for unfair dismissal protection will be eliminated, fulfilling Labour’s commitment in its manifesto to provide protections for all workers from the first day.
The Employment Rights Bill contains 28 specific reforms in the employment sector, ranging from the elimination of “exploitative”, zero-hours contracts, and firing and rehiring practices, to the establishment of rights on day one for paternity leave, parental leave, and bereavement leaves.
The statutory sick pay system will be revised, with the removal of the lower earning limit for all employees and the elimination of the three-day wait period before the start date.
Angela Rayner, deputy prime minister of Australia, said: “This Government is delivering the largest upgrade to work rights in a generation. It will boost pay and productivity by introducing employment laws that are fit for modern economies. We are turning the page on a ravaged economy, plagued by insecurity and low pay.
The UK’s outdated employment laws are holding back our country and failing both businesses and workers. Our plans to make the work pay will provide security at work, which is the basis for increasing productivity and growing our economies to improve working conditions and help us achieve our potential.
“Too many are trapped in a race towards the bottom. They are denied the security needed to raise a child, while businesses struggle to retain workers to grow. We are raising the bar on rights at work in order to create a brighter, stronger and more equitable future for Britain’s workforce.
Where possible, flexible working defaults
Two days before the Labour 100-day deadline passed, the reforms included measures that would make work more compatible with the lives of people, and flexible working was made “the default where practicable”.
The government will require large employers to develop action plans that address the gender pay gap and provide support to employees during menopause. Protections for new mothers and pregnant women will also be enhanced.
The new Fair Work Agency will bring together existing enforcement agencies to enforce rights like holiday pay, and “support employers who are looking for guidance on compliance with the law”.
Jonathan Reynolds, the Business Secretary said: “Our mission is to get the economy going and create long-term sustainable growth for people and businesses in the whole country.” Our plan will upgrade the workplace, increasing pay and productivity.
The bill will put an end to “exploitative”, zero-hours contract, though a definition has not been released yet.
According to the government, research has shown that 84% of workers on zero-hour contracts would prefer guaranteed hours. The government will allow people on low and zero hours contracts to have the option of a guaranteed-hours agreement if they are able to work regularly over a specified period. This gives them a sense of security, while still allowing them to continue on their zero-hours agreements if that is what they prefer.
The government will close loopholes allowing for fire-and replace and fire-and rehire as it creates new measures that give greater protection against unfair dismissal.
Details still need to be worked out
Peter Cheese, the chief executive of CIPD said that the changes represent the biggest shift in employment laws in decades. It is also clear that many details still need to be worked out and it will take time.
TUC General Secretary Paul Nowak stated: “While details still need to be worked out, this bill signals an seismic shift away the Tories’ low pay, low rights, and low productivity economy.”
The government has published a document called “Next Steps”, which outlines the reforms that it will be implementing in the future. This includes:
- Employees are not allowed to be contacted outside of working hours except in rare circumstances.
- The commitment to extend the Equality (Race and Disparity) Bill so that large employers are required to report on ethnicity and disability pay gap
- The transition to a two-tiered employment status and a move towards a unified status for workers.
- Review parental and carer leave to make sure they are beneficial for employees, workers and their families.
Kate Nicholls is the CEO of UKHospitality. She said, “I am pleased that the government has recognized the importance of flexible working for both employees and businesses.” It is important for the hospitality industry, which employs over 3.5 million workers and offers flexible positions for parents, students, caregivers and more.
We look forward to our continued engagement and consultation with government on their plans, which will not be free, to ensure that all the details are right for everyone.
Clumsy, chaotic
Tina McKenzie is the chair of policy for and advocacy at Federation of Small Business. She said, “This legislation was rushed; clumsy and chaotic, and poorly planned. Dropping 28 new measures on small business employers at once left them scrambling to understand it all.
“Beyond the warm words, this plan lacks any pro-growth elements and will increase inactivity. This will seriously undermine the Government’s target of 80% employment.”
As we reported on Monday many of the measures in today’s bill may take years before they are implemented.
Personnel Today will provide more analysis on the Employment Rights Bill as soon as it becomes available.
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