Just a couple of days short of its self-imposed deadline of within the first 100 days of its term in parliament, the Labour government has announced its workers’ rights bill.
Included in the bill are the introduction of day-one universal sick pay, enhanced maternity rights and an end to the so-called practice of fire-and-rehire.
We take a look at some of the details included in the bill:
Day one rights
Workers will have protection against unfair dismissal from day one of their employment. Under the previous rules, employees would have to wait until they had completed two years of service before being granted the same dismissal protection. These rules are set to come into play in August 2026.
To safeguard employers, this comes with the introduction of a new statutory probationary period, with a ‘lighter touch’ approach to enforcing these new rules, meaning that employers can still exercise assessment of their new hires, with a 9-month probationary period being suggested by the government.
Sick pay, leave and flexible working
There will also be a universal entitlement to sick pay from the first day of illness for employees, rather than day four as previously.
Also included in the changes in day one rights includes the addition of day one rights for paternity and unpaid parental leave, as well as making sure employers create a policy for bereavement leave.
In addition to these reforms, the bill promotes flexible working as a default option for all employees from the first day of employment, requiring employers to reasonably accommodate such requests. It also rolls back some restrictions on trade union activity imposed by previous Conservative governments, restoring more power to unions, including easier processes for union recognition and support for online strike ballots.
Contracts and the end to ‘fire and rehire’
A significant shift in the bill is the reform of zero-hours contracts. Workers on such contracts now have the right to request guaranteed hours after a reference period, typically based on hours worked over 12 weeks. Employers are also required to provide reasonable notice of shift changes, and any last-minute cancellations must come with compensation. These measures are aimed at curbing the unpredictability and insecurity faced by many workers on such contracts.
The bill also targets the controversial practice of fire and rehire, making it unlawful in most cases. This practice, where employers dismiss workers to rehire them under less favourable terms, has been a point of contention and has drawn significant criticism from unions.
This bill has been met with a generally positive response from trade unions, though employers have raised concerns about its potential impact on hiring practices and increased employment tribunal cases. Labour has promised further consultations to ensure a balance between workers’ rights and employer flexibility.
Discussion around the right to switch off and legislation to end pay discrimination are among the elements that have been left out of the bill. It is believed that these will be focused on in additional draft bill.
This new raft of changes comes off the back of the Worker Protection (Amendment of Equality Act 2010) Bill, also coming into force in October 2024. This bill increases the obligation on employers to take ‘reasonable steps’ to prevent sexual harassment in the workplace. ‘Reasonable steps’ are likely to constitute measures such as conducting regular training with employees to ensure they know what harassment looks like and how to respond if they witness or experience it.
For businesses seeking to navigate the upcoming legislative changes in the most proactive way possible, Morson is on hand to help. Whether you’re looking for training, a review of policies and procedures, or advice on ED&I and cultural change, you’ll find it in our extensive suite of HR services. For more information, get in touch today.
