Unpacking the changes from Labour’s Employment Rights Bill

In a marked “sea change” from 14 years of Conservative Government, the Labour Government’s Employment Rights Bill brings in a swathe of reforms aimed at correcting poor treatment in the workplace. As Angela Rayner says, the goal is to “raise the floor and end the race to the bottom”.

The Bill, which amends the existing 1996 Employment Rights Act, introduces changes to employment law at both individual and collective levels. Consisting of 150 pages, it serves as the “bare bones” of the legislation, creating new laws and covering a broad spectrum of employment issues, with further regulations to be developed by the Secretary of State.

It is expected that a consultation period will operate over the next two years, but looking at what we know so far, here are five key takeaways from the Bill:

1. The existing two-year qualifying period for protections from unfair dismissal will be removed, delivering on the manifesto commitment to ensure that all workers have a right to these protections from day one on the job.
2. 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, enabling businesses to take chances on hires while giving more people confidence to re-enter the job market or change careers, improving their living standards.
3. The Bill will bring forward 28 individual employment reforms, from ending exploitative zero hours contracts and fire and rehire practices to establishing day one rights for paternity, parental and bereavement leave for millions of workers. 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.
4. 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 will also be required to create action plans on addressing gender pay gaps and supporting employees through the menopause, and protections against dismissal will be strengthened for pregnant women and new mothers. This is all with the intention of keeping people in work for longer, reducing recruitment costs for employers by increasing staff retention and helping the economy grow.
5. A new Fair Work Agency bringing together existing enforcement bodies will also be established to enforce rights such as holiday pay and support employers looking for guidance on how to comply with the law.

You can read about the Employment Rights Bill in further detail in our article here.

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