On October 10th, Labour introduced its employment rights bill to parliament, and it’s been quite the talking point. Described by the government as the “biggest upgrade to rights at work for a generation,” this bill aims to overhaul workers’ rights in the UK. Whether you’re an employee or business owner, you might be wondering how this bill will affect you and when these changes will kick in.
Key reforms in the employment rights bill:
1. Guaranteed hours for zero-hours workers: Workers on zero-hours contracts will now have the choice to secure guaranteed hours, while also retaining the flexibility to stick with their current contract terms if they prefer.
2. Statutory sick pay from day one: Employees will be eligible for statutory sick pay starting from their first day of illness, removing the previous earnings threshold of £123 per week to qualify.
3. Creation of a fair work agency: A new fair work agency will be established to enforce workers’ rights and oversee compliance, ensuring protections are upheld across workplaces.
4. Enhanced protections against workplace harassment: This bill introduces stronger protections against workplace harassment, including specific safeguards against sexual harassment, aimed at creating a safer work environment.
5. Repeal of the 2016 trade union act: The repeal will lift restrictions by the 2016 act, restoring rights for trade unions to strike and advocate for their members effectively.
With 8% of all businesses and 20% of businesses with 10 or more employees reporting worker shortages, these reforms are designed to tackle pressing labour market issues. The government is optimistic that these changes will breathe new life into the workforce, which is crucial for economic growth.
In addition to these confirmed reforms, there are several aspects of the employment rights bill still under discussion that aim to provide employees with more “day one” rights. Key among these are provisions for unpaid parental leave and bereavement leave, which if enacted would grant employees immediate access to these extra supports upon starting a new job.
While it’s encouraging to see employees gaining more “day one” rights, we must also consider the potential impact on employers. These reforms will require employers to be more vigilant in their hiring processes to ensure they select the right candidates who align with their needs and values. Striking a balance between providing these rights and managing operational costs, which have risen from the autumn budget, will be crucial to maintaining a sustainable workforce. However, the bill includes various reforms and it will take time for these changes to affect employees’ lives. Most provisions are not expected to become law until 2026 ensuring companies have time to make necessary adaptions, although for the most part you’ll find many already have such policies in place.
