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The Government has unveiled a new Employment Rights Bill, which will bring forward 28 individual employment reforms that aim to balance both ensuring secure working conditions and flexibility for both businesses and workers.
Among the reforms set out in the bill are plans to end exploitative zero-hours contracts, which will give workers on such contracts the right to a guaranteed hours contract if they work regular hours over a defined period. Loopholes in current protections that allow for so-called ‘fire and rehire’ practices in contract negotiations will also be closed as part of enhanced protections against unfair dismissal. The Bill will also establish day one rights to paternity, parental and bereavement leave, and improve statutory sick pay by removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in.
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. Consultations will also be launched into ethnicity and disability pay gap reporting, parental and care leave systems, and introducing a “Right to Switch Off” to limit employers from contacting workers outside of contracted hours. Plans to introduce a new statutory probation period for new hires will also be consulted on.
Government will also establish a new Fair Work Agency that will bring together existing enforcement bodies to enforce rights such as holiday pay and provide support to employers looking for guidance on how to comply with the law. The Employment Rights Bill will also reverse the previous administration’s legislation to enforce minimum service levels during industrial action.
Business Secretary Jonathan Reynolds said:
“It is our mission to get the economy moving and create the long term, sustainable growth that people and businesses across the country need. Our plan will give the world of work a much needed upgrade, boosting pay and productivity.
“The best employers know that employees are more productive when they are happy at work. That is why it’s vital to give employers the flexibility they need to grow whilst ending unscrupulous and unfair practices.
“This upgrade to our laws will ensure they are fit for modern life, raise living standards and provide opportunity and security for businesses, workers and communities across the country.“
Employment Rights Minister Justin Madders said:
“We know that most employers proudly treat their staff well. However, for decades as the world of work has changed, employment rights have failed to keep pace, with an increase in one-sided flexibility slowing the potential for growth in the economy.
“The steps we’re taking today will finally right these wrongs, working in partnership with business and unions to kickstart economic growth that will benefit them, their workers and local communities.
“From tackling fire and rehire to ending exploitative zero hours contracts, we are delivering a modern economy that drives up living standards for families across the UK.“