Ministers have unveiled the Employment Rights Bill to help deliver economic security and growth to businesses, workers and communities across the UK.

According to the government, getting the labour market moving again is essential to economic growth. One in five UK businesses with more than 10 employees reporting staff shortages. Flexibility, for workers and businesses alike, is key and at the heart of the legislation to upgrade the law to ensure it is fit for modern life.

Jonathan Reynolds, the 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.”

He added, “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 reforms

The existing two-year qualifying period for protections from unfair dismissal will be removed, delivering on the government’s manifesto commitment to ensure that all workers have a right to these protections from their first day on the job.

The government will also consult on a statutory probation period for companies’ new hires. This will allow for a proper assessment of an employee’s suitability for a role as well as reassuring employees that they have rights from day one. This will enable businesses to take chances on hires while giving more people the confidence to re-enter the job market or change careers, improving their living standards.

The bill proposes 28 individual employment reforms, including:

  • Ending exploitative zero-hours contracts and ‘fire and rehire’ practices
  • Establishing day-one rights for paternity
  • Parental and bereavement leave
  • Strengthening statutory sick pay
  • Removing the lower earnings limit for all workers
  • Cutting out the waiting period before sick pay kicks in

Work-life balance

Accompanying this will be measures to help make the workplace more compatible with people’s lives, with flexible working made the default where practical.

Large employers would be required to create action plans to address gender pay gaps and support employees through menopause. Protections against dismissal will be strengthened for pregnant women and new mothers.

The government said these changes are intended to keep people in work for longer, reduce employer recruitment costs by increasing staff retention, and help the economy grow.

A ‘Fair Work Agency’ will be established to 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.

Commenting on the announcement, Brian McNamara, CEO of Haleon, said, “It is crucial that the government continues to engage with the business community on such an important piece of legislation and we welcome the dialogue to date.

“Haleon is committed to creating an inclusive culture that provides all employees with equal opportunities.This is central to our company strategy and will be core to our future success.”

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