Reforms to employment rights

The Government recently unveiled details of the most significant reform to employment laws in decades. The government claims the Employment Rights Bill will make the workplace fairer and more adaptable to modern needs, benefiting both workers and employers, while promoting long-term economic growth.

Getting the labour market moving again is seen as essential to economic growth, with one in five UK businesses with more than 10 employees reporting staff shortages. Flexibility, for workers and businesses alike, is seen by many as key to answering this challenge and is at the heart of the legislation to upgrade the law to ensure it is fit for modern life and a modern economy.

Key reforms include:

  • Day-one protections: Workers will be protected from unfair dismissal and entitled to paternity, parental, and bereavement leave from their first day on the job, removing the current two-year waiting period.
  • Zero-hour contracts: The bill tackles exploitative zero-hour contracts, allowing workers on regular hours to request guaranteed hours while preserving flexibility for those who prefer it.
  • Fire and rehire: The bill ends abusive fire and rehire practices, preventing companies from forcing employees onto worse terms when rehired.
  • Statutory sick pay: Sick pay eligibility will be expanded by removing the lower earnings threshold and the waiting period before it starts.
  • Flexible working: Flexible working will become the default unless employers can show why it isn't practical.
  • Pregnancy and gender protections: Protections for pregnant women and new mothers against dismissal will be strengthened, and large employers will be required to address gender pay gaps and provide menopause support.

Government unveils significant reforms to employment rights - GOV.UK (www.gov.uk)