Labour’s new employment rights bill, Plan to Make Work Pay, is expected to be introduced on 12th October, 100 days after coming into office.
Set to be the biggest change in employment rights in 100 years, it aims to improve protections for workers across various sectors. Let’s take a look at what we need to look out for and what’s already in place as a refresher.
Employment status
The new employment rights bill proposes a shift to a simplified one-category system for employment status. Classifying individuals as ‘workers’ for the purposes of workplace rights and protections. Currently, people are categorised as employees, workers or self-employed, with each group having distinct rights and protections.
The growth of the ‘gig’ economy has made it challenging to determine an individual’s employment status. Introducing such changes would represent a significant shift in employment law, likely preceded by a thorough consultation process. As a result, no immediate changes to employment status are expected in the near term. Employers may seek guidance from HR consultants to navigate these new legal frameworks.
Unfair dismissal as of day one: Previously, employees needed to have been employed for two years to be protected from unfair dismissal. This protection will apply from the first day of employment, making it harder for employers to dismiss new hires without valid reasons. They will need to follow a stringent review process designed to protect both parties.
Parental leave’ a right from day one: Currently a one-year qualifying period for parental leave. From day one, it will give parents the right to take up to 18 weeks’ unpaid leave – at the rate of up to four weeks’ a year – for each child.
New right to ‘switch off’: There are plans to introduce a ‘right to switch off,’ which would allow employees to disconnect from work outside of their contracted hours without facing penalties.
Statutory sick pay: Labour plans to eliminate the three-day ‘waiting period’ before statutory sick pay (SSP) becomes payable. Under this change, workers would be eligible for SSP from their first day of absence, rather than the fourth, as is currently required. Additionally, the lower earnings limit would be removed.
Zero hours contracts: New rules aimed at preventing the misuse of zero hours contracts are in development. While an outright ban was initially proposed, this now appears to have been revised. Instead, employers may continue using zero hours contracts, provided they are not deemed exploitative or ‘abused.’ Further details on what will constitute an exploitative zero hours contract to follow.
Equality at work: Employers will be required to devise and implement plans to eradicate pay gap inequalities for ethnic minority, disability and gender-specific groups.
Employment rights already in position from April 2024
- Enhanced redundancy protections for pregnant employees and new parents: From April 2024, redundancy protection has been extended to pregnant employees and those returning from parental leave. This means employers will need to offer suitable alternative employment for up to 18 months after childbirth or adoption
- Right to request flexible working from day one: Employees are now able to make two flexible working requests per year, starting from their first day at work, with employers required to respond within two months. Employees do not need to give a reason why.
- Changes to paternity leave: Fathers and adoptive parents now have more flexibility in taking their paternity leave, allowing them to split their two weeks of leave into two separate blocks and take it within the first year after the child is born or adopted. They only need to give 28 days’ notice of each period of leave, instead of the previous 15 weeks.
These reforms already represent a broad effort to modernise employment rights and address ongoing issues of job security and fairness in the workplace. With the new changes aiming to provide workers with stronger protections, more flexibility and greater support in balancing work and personal responsibilities. However, implementation will most likely be gradual, following detailed consultations with relevant parties.