Labour has outlined comprehensive reforms to enhance employee rights through the ‘Employment Rights Bill’.
- The Bill aims to eliminate insecure work and raise minimum employment standards.
- Key features include extending day-one rights and revamping probationary periods.
- Employers will face restrictions on controversial practices like fire and rehire.
- Proposed measures necessitate parliamentary consultation before becoming law.
Labour has unveiled the ‘Employment Rights Bill’, a legislative proposal designed to significantly reform workplace rights and conditions. Aligned with their electoral promises, the Bill seeks to diminish insecure work, with Labour asserting their continued commitment to effect change and ensure that work remains rewarding.
A notable amendment is the extension of day-one rights for unfair dismissal, abolishing the current two-year qualifying period. In its place, a nine-month statutory probationary period is proposed. Additionally, statutory sick pay will commence from the first day of illness and employment, with no lower earnings limit on eligibility.
The Bill proposes strong deterrents against the practice of fire and rehire. Dismissing employees for not consenting to contractual alterations will be treated as automatically unfair, a move anticipated to stir debate among business leaders.
Revisions to zero-hours contracts are introduced, granting employees the right to shift to contracts with guaranteed hours and insisting on reasonable notice for schedule changes. Labour aims to fulfil their promise to end ‘one-sided flexibility’ in employment.
Flexibility in the workplace is further empowered by granting the right to request flexible working from day one, barring instances where it is impractical. Moreover, enhanced family leave rights will allow for maternity pay and protection against dismissal from the outset of employment.
Additional legislative proposals include robust measures against third-party harassment, expanding protection against sexual harassment through whistleblowing legislation, and the potential requirement for large employers to implement Equality Action Plans.
Reform in bereavement leave is anticipated, establishing a day-one right to at least one week of leave. The Bill also suggests amendments to clarify employment status distinctions, which have become a source of legal contention in recent years.
Trade union rights take centre stage, with simpler processes for union action and an obligation for employers to inform employees of union membership rights. Despite its absence, Labour plans to address the ‘Right to Disconnect’ in the future.
Businesses can expect heightened enforcement of these reforms, translating into increased operational costs and reduced flexibility. These changes remain in the consultation phase and require parliamentary approval but highlight the significant shift in employment law dynamics.
Enforcement of the proposed reforms mandates businesses to understand and integrate these changes before they are legislated. Companies must proactively ensure compliance to mitigate risks associated with potential legal claims.
Preparation for these changes is essential for businesses to ensure compliance and avoid legal challenges.
