During the King’s Speech in July, the new Labour government announced plans to pass the Employment Rights Bill 2024. The law is set to tackle current employment issues, especially around workers and family rights.
The highly anticipated Bill is set to be released by mid-October. And it will be the first step in Labour’s employment law overhaul, with more than 60 proposed changes that could make the cut.
The new Employment Rights Bill is applicable across Great Britain. (That’s England, Scotland, and Wales – not Northern Ireland). With the right compliance, employers can ensure their business stays on the right side of the law.
Peninsula offers expert advice on employment law compliance. We also offer 24-hour HR advice – ensuring your business is ready for legislative changes to come. Want to find out more? Contact us on 0800 028 2420 and book a free consultation with an HR consultant today.
Now, let’s dive deeper into the new Employment Rights Bill Labour are drafting, and how the changes will impact your business for the better.
What does the new Employment Rights Bill cover?
There are numerous legislative changes outlined under the new Employment Rights Bill 2024. We don’t know what will be included yet as there are over 60 proposals outlined in their manifesto.
Despite that, let’s take a closer look at some of the main areas that could be included:
Ban on exploitative zero-hour contracts
The government is set to ban zero-hour contracts that exploit or mistreat workers. In addition, they’ll have a right to receive contracts that reflect the hours they regularly work (based on a 12 week reference period). Employers are also obliged to provide regular hours, as well as give reasonable notice and compensation for shift changes or cancellations.
End ‘fire and rehire’ schemes
The bill aims to put a stop to ‘fire and rehire' and 'fire and replace' schemes that 'leave working people at the mercy of bullying threats'. Instead, the government will provide effective methods to replace inadequacies from the previous government’s statutory code on dismissal and re-engagement.
Introduce basic workers’ rights from day one
Workers are also set to review sick pay and protection from unfair dismissal – making it available from their first day of employment. However, the bill may still allow employers to conduct probationary periods when hiring new candidates.
Improve sick pay rights for workers
The bill looks to improve statutory sick pay rights for workers. The government plans to remove the lower earnings limit and removing the waiting period. The law will also ensures a fair earnings replacement for those who earn below the current SSP rate.
Improved flexible working arrangements
Workers now have the right to request flexible working arrangements from their first day of employment. Employees can also make two requests per year.
The new government plans to make flexible working 'the default from day one for all workers, except where it is not reasonably feasible'.
Employers must respond to requests within two months of receiving them. And they can only deny a request if it falls within one or more of eight statutory reasons.
Legal protection for pregnant women
The new government plans to give new mothers legal protection for at least six months of them returning to work. This includes protection from unlawful discrimination.
Establish new Fair Work Agency
The government is set to establish a new Single Enforcement Body called the ‘Fair Work Agency’. The plan is to help strengthen enforcement of statutory employment rights across all employment industries.
Better pay in adult social care
The bill is set on improving salary in the adult social care sector by establishing the ‘Fair Pay Agreement’. Through appropriate reviews, the government will assess how these changes perform – with the aim of applying them across other employment sectors.
Reinstate School Support Staff Negotiating Body
The bill aims to reinstate the ‘School Support Staff Negotiating Body’. The body hopes to establish national terms and conditions for schools, build career progression pathways, and fairer salaries for support staff.
Update trade union laws
The bill is set to make much-needed updates to trade union legislation helping to align with current economic needs. This includes removing unnecessary restrictions on trade union activity, like minimum service. The bill also ensures better industrial relations – based on good faith, negotiations, and bargaining.
Are there other laws being passed in connection to the Employment Rights Bill?
Yes, under the same Labour manifesto, there are other legislative changes set to be passed in connection to the Employment Rights Bill.
The government promised to have the laws drafted within their first 100 days in charge. However, it will go through parliament so we can’t say when the Act will actually be passed, but probably won’t be this year.
Despite that, let’s take a look at potential new laws and legislative amendments:
The Equality (Race and Disability) Bill
The Equality (Race and Disability) Bill aims to tackle inequality by enshrining in law the full right to equal pay for ethnic minorities and disable people. The bill also hopes to introduce mandatory ethnicity and disability pay gap reporting.
The Worker Protection Act
The Worker Protection Act is set to pass on the 26 October. The act states employers have a new legal duty to take reasonable steps to prevent sexual harassment of its workers. The government has working on strengthening the process of employers taking reasonable steps to prevent sexual harassment.
The Employment (Allocation of Tips) Act
The Employment (Allocation of Tips) Act passed on the 1st of October. Under this law, the government have outlined what the legal rules are when it comes to distributing tips between workers. This act also forced businesses to distribute qualifying tips without making deductions.
Other legislative changes
There are other legislative changes which the government plans to make in relation to the Employment Rights Bill and other relevant laws. These areas include:
- Single worker status.
- Reviewing the parental leave framework.
- Extending collective redundancy consultation requirements.
Get expert advice on the new Employment Rights Bill with Peninsula
Employers have all kinds of legal responsibilities relating to their staff and workplace. One wrong move and you could end up causing serious legal complications for yourself and the overall business.
Peninsula is here to provide expert advice on the new Employment Rights Bill. We also offer 24-hour HR advice – ready to help you keep compliant whilst building business progression and success.
Want to find out more? Contact us on 0800 028 2420 and book a free consultation with an HR consultant today.