MILLIONS of workers are set to receive enhanced sick pay, maternity benefits, and stronger job protections under new Labour proposals.
The Employment Rights Bill, unveiled this morning, will grant sick pay from the very first day of illness.
Women will benefit from immediate access to maternity pay starting from their first day of employment.
Zero hour contracts and fire and rehire practices, long deemed exploitative, are also set to be abolished.
Business Secretary Jonathan Reynolds said the Employment Rights Bill will elevate the baseline of employment rights and improve living standards nationwide.
In a statement this morning, he said: “This is a pro-worker, pro-business plan.
“The government will tackle head-on the issues within the UK labour market that are holding Britain back.
“The Plan to Make Work Pay sets out a vision for modern and fair employment protections that will set the country up for the future.”
Details of many policies in the Bill will now go through a consultation process.
The government added that it expects the new rules to come into force in 2026.
For now, we’ve outlined exactly what’s on the table and what it means for you.
Parental and bereavement leave
Currently, only individuals legally classified as employees are eligible for paternity leave.
To qualify, one must have been continuously employed by their employer for at least 26 weeks leading up to any day in the “qualifying week,” the 15th week before the baby’s due date.
This means those classified as workers are not entitled to paternity leave and must use their annual leave to take time off.
The Employment Rights Bill aims to change this by introducing day-one entitlement to paternity leave and unpaid parental leave.
It will also establish a statutory entitlement to bereavement leave.
At the moment, there is no legal right to paid time off for bereavement in the UK, but employers can offer it voluntarily.
Flexible working
Flexible working is a way of working that suits an employee’s needs, for example having flexible start and finish times, or working from home.
Currently, all employees have the legal right to request flexible working.
An employer can refuse an application if they have a good business reason for doing so.
However, the Employment Rights Bill will give employees the right to flexible working as default.
The move is said to increase the likelihood of a request for flexible working arrangements to be granted.
However, if an employer can prove this work pattern is “unreasonable” they might still be able to deny it.
At the moment, it’s not clear how these reasons will be interpreted.
Sick pay
Under current statutory sick pay rules, only those earning an average of over £123 a week are eligible.
Those who qualify receive £116.75 per week if they are too ill to work.
Your employer pays this amount for up to 28 weeks, with payments starting after the first three days of leave.
However, the Employment Rights Bill proposes eliminating the earnings threshold to qualify.
It will also ditch the three-day waiting period before workers begin receiving payments.
THE SUN SAYS
LABOUR’S new workers’ rights reforms are focused on the wrong thing…
Euan Blair made a fortune and created hundreds of jobs by ingeniously exploiting one of his own dad Tony’s biggest mistakes. His insight is worth reading.
He seemingly realised the ex-PM’s zeal to get half our school pupils to university was folly.
Because even a top-flight degree doesn’t guarantee them a job, let alone a lucrative and fulfilling career.
Euan’s hugely successful start-up matches young talents with apprenticeships at big employers without the need for three expensive and sometimes pointless years at uni.
And when he now says Labour’s new workers’ rights reforms are focused on the wrong thing, he’s hit the nail on the head again.
Angela Rayner may think it’s vital to let more people work from home, do a four-day week or ban the boss from calling after 6pm.
None of that will matter a jot if the tsunami of AI sweeps away their job and millions more.
This Government, Euan says, is in danger of “fixing the problems of yesterday” while losing sight of tomorrow’s.
The future, he says, rests on reskilling workers for the looming tech revolution.
You can read about it here. We hope they do so in No10 too — and take notice.
Unfair dismissal
Dismissal is when your employer ends your employment – they do not always have to give you notice.
If you have been with the company for at least two years, you have the right to receive a written explanation, which should be in the form of a letter or email.
The law states that it is always unfair if you are dismissed for an “automatically unfair” reason.
You can also challenge your employer if they dismiss you for a discriminatory reason.
If you were dismissed for a different reason and have worked for your employer for less than two years, you do not have the right to challenge it.
However, the Employment Rights Bill promises day one protection from unfair dismissal.
According to officials, around nine million workers who have been with their employer for less than two years will benefit from this change.
Probation periods
A probation period is a designated timeframe at the start of an individual’s employment, during which they can be dismissed with little or no notice if deemed unsuitable for the role.
Currently, there are no specific rules on the duration of these periods, which typically range from three to six months in the UK.
However, the Employment Rights Bill proposes introducing a statutory probation period for new hires, with the government consulting on a nine-month duration.
The government asserts that this will allow for a thorough assessment of an employee’s suitability for a role while reassuring employees that they have rights from day one.
It suggests this initiative will enable businesses to take chances on new hires and give more people the confidence to re-enter the job market or change careers, ultimately improving their living standards.
Zero hour contracts
A zero hour contract, also known as a casual contract, is an employment agreement where the employer does not guarantee a minimum number of working hours for the employee.
At the same time, the employee is not obliged to accept any work offered.
The Employment Rights Bill promises to ditch zero hour contracts in their current form.
This legislation will provide casual workers the right to a guaranteed hours contract if they have worked regular hours over a defined period, thereby offering greater earnings security.
However, the government has confirmed that individuals who prefer to remain on zero hour contracts will still have the option to do so.
Fire and rehire
Fire and rehire, also known as dismissal and re-engagement, is a practice where an employer sacks employees and rehires them on different, often less favourable, terms and conditions.
This approach is typically employed when employers seek to implement changes to employment contracts that employees might not voluntarily accept.
Currently, fire and rehire is not outright illegal in the UK.
However, the Employment Rights Bill will ban the practice in all but extreme circumstances.
Minimum wage
Currently, there are two different minimum wage rates that all workers across the UK are entitled to: the National Minimum Wage and the National Living Wage.
The National Minimum Wage (NMW) is the minimum pay per hour for workers who have left school.
Right now, 18 to 20-year-olds must earn at least £8.60 an hour.
Meanwhile, the National Living Wage is the minimum wage for those over 21, and is slightly higher.
It was previously only available to those over 23, but this was adjusted to 21 and over in November 2023.
It’s currently worth £11.44 an hour.
Young workers aged 18 to 20 are expected to see a substantial increase in their statutory rate as the Employment Rights Bill will direct the Low Pay Commission to remove all age bands that set lower minimum wages for younger staff.
When was the minimum wage introduced?
THE first National Minimum Wage was put in place in 1998 by the Labour government.
It originally applied to workers aged 22 and over, and there was a separate rate for those aged 18-21.
A separate rate for 16-17-year-olds was introduced in 2004, and in 2010, 21-year-olds became eligible for the adult rate of the National Minimum Wage.
The rate is set by the Government each year based on recommendations by the Low Pay Commission (LPC).
