The Employment Rights Bill passed this week could take years to become effective

Labour’s ‘once in a lifetime’ reforms of workers’ rights may take years to implement, and they won’t all be implemented at once, according to reports.

It is expected that the government will publish its draft Employment Rights Bill in less than 100 days after taking office. This Thursday (10 October) is likely to fall on this date.

Officials have said that some key measures could take up to 18 months to be implemented in the workplace.

A report in The Times states that a number manifesto promises have been delayed until later in the parliament. These include giving staff an “right of switch-off” and creating a one status for workers to simplify tax and legal systems, as well as to challenge fake self-employment.

Ministers will encourage companies to develop codes of conduct regarding contacting employees after hours of work, instead of giving employees legal rights, as in some countries.

The Times reported that while all employees would be entitled to sick pay on the first day of sickness, rather than the fourth, Labour might introduce a lower rate of sick pay for those earning less than the current threshold of PS123 per week to qualify for sick leave.

Negotiations with business groups and trade unions over the Bill’s details could cause delays in the formal introduction. Some elements of the manifesto promises of the government may be left for secondary legislation a few years into this Parliament.

A business leader told The Financial Times that he did not think the trend would be widespread before 2026. There is an attitude of “let’s do it right the first time ‘…. The mood is to use second legislation on any contentious issue to allow time for consultation.”

The repeal of anti-trade Union legislation could be implemented faster, as government departments are already ordered to ignore minimum level service rules.

It is better to introduce protections for pregnant employees and clarification of the right to bereavement leaves sooner than later.

Reforms that are complex

Some of the more complex issues could include creating a new mandatory probation period as part of new day-one protections for maternity pay, sick pay, and unfair dismissal. This could be six months maximum, according to previous reports. However, this will need to be discussed with unions and business leaders.

Business lobby groups are concerned that a ban on casual employment could be stifling.

Neil Carberry said that meetings with the Department for Business and Trade have been positive. He expects that the draft he will receive on Thursday will be “extremely enabling”, in that it will grant departments powers to regulate in certain areas, but also allow them to consult with stakeholders.

He said that the day-one right, zero-hours contract and employee status are likely to have a major impact on business. It’s not perfect, but Labour promised to deliver in 100 days. We’d prefer something we can live with, rather than something harder to undo.

The plan for Making Work Pay has a huge impact, so we need to know how to make it workable for businesses. We also need to know the timeline for implementation. We need to be clear about the level of consultation, because the last thing that we want to do is lock people out of employment.

For example, bosses in seasonal industries are concerned that proposals to grant an entitlement for a contract reflecting regular hours worked may be problematic.

The draft bill released on Thursday is likely to be a general outline of what the HR team will deliver in the coming months. However, the HR team may not have to deal with reforms “on the ground” until 2025 or 2026.

In advance of the budget for this month, on 30th October, the government will want to make sure that both employers and workers are pleased with its Bill.

The Chancellor Rachel Reeves already ruled out increases in income tax and employee contributions to national insurance, but employers could be required to pay higher NI contributions.

Paul Nowak, TUC general secretary, said that if the Employment Rights Bill is fully implemented it will improve working conditions for millions of workers. Everyone’s interest is served by raising employment standards.

“Creating a level playing ground on worker’s rights will prevent good employers from being undercutted by the bad.” It is in the best interest of both workers and businesses to increase job security. “Treating staff well increases productivity and improves living standards.”

Molly Johnson Jones, CEO and co-founder of Flexa, a flexible job board, says that legislation “top-down”, would not be the solution.

She said that employers should be able choose the policies, benefits, and working conditions that best suit their business and employees, and they should be transparent in what they provide.

This way, employers can retain employees who are happy in their work culture.

Human Resources Director Opportunities on Personnel Today

Search for more HR Director jobs