The legislation being introduced in Parliament aims to upgrade workers’ rights across the UK, tackle poor working conditions and benefit both businesses and workers.
Under the bill, the existing two-year qualifying period for protections from unfair dismissal will be removed, giving employees protections from day one in a new job.
The Government will also consult on a new statutory probation period for companies’ new hires. 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.
The bill will bring forward 28 individual employment reforms. These include ending exploitative zero-hours contracts and fire-and-rehire practices and establishing day-one rights for paternity, parental and bereavement leave.
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.
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In addition, flexible working made the default where practical. Large employers will also be required to create action plans for addressing gender pay gaps and supporting employees through the menopause. Protections against dismissal will be strengthened for pregnant women and new mothers.
A new Fair Work Agency will bring together existing enforcement bodies to enforce rights such as holiday pay and support employers looking for guidance on how to comply with the law.
Jonathan Reynolds, business secretary, said: “It is our mission to get the economy moving and create the long-term, sustainable growth that people and businesses across the country need. Our plan will give the world of work a much-needed upgrade, boosting pay and productivity.
“The best employers know that employees are more productive when they are happy at work. That is why it’s vital to give employers the flexibility they need to grow whilst ending unscrupulous and unfair practices.
“This upgrade to our laws will ensure they are fit for modern life, raise living standards and provide opportunity and security for businesses, workers and communities across the country.”
The Government has also published a Next Steps document that outlines reforms it will look to implement in the future. These include:
- ‘A Right to Switch Off’, preventing employees from being contacted out of hours, except in exceptional circumstances.
- A 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 carer’s leave systems.
‘Hope on the horizon’
Paul Nowak, general secretary at the Trades Union Congress (TUC), said: “After 14 years of stagnating living standards, working people desperately need secure jobs they can build a decent life on.
“Whether it’s tackling the scourge of zero-hours contracts and fire and rehire, improving access to sick pay and parental leave, or clamping down on exploitation – this bill highlights the Government’s commitment to upgrade rights and protections for millions.
“Driving up employment standards is good for workers, good for business and good for growth. While there is still detail to be worked through, it is time to write a positive new chapter for working people in this country.”
Jane van Zyl, CEO of Working Families, said: “As campaigners for better rights for working parents and carers, we’re pleased there is hope on the horizon for the millions who stand to benefit from the transformational changes in the proposed Employment Bill.
“Establishing workplace rights from day one and making flexible working the default could be the key to unlocking labour market mobility, with the promise of getting the economy moving and ensuring parents and carers are not held back in their careers. In addition, we welcome any strengthening of legislation that helps protect pregnant women and new mothers against losing their jobs unfairly at a vulnerable time in their lives.”
