The UK Government’s new Employment Rights Bill promises to reform employment practices, with a focus on ending ‘exploitative’ zero-hours contracts, prohibiting the controversial “fire and rehire” practice, and introducing a range of basic employment rights from the first day of work.
This significant legislative move is designed to modernise outdated employment laws, aiming to improve worker protection and boost productivity across the economy.
Among the key provisions are guaranteed employment protections from day one, such as paternity and parental leave, bereavement leave, and protection from unfair dismissal. The Bill will also introduce statutory probation periods for new hires, allowing employers to evaluate employees while ensuring that workers have basic rights immediately upon starting a job.
In addition to these rights, statutory sick pay will be strengthened. The lower earnings limit, which currently excludes some workers from receiving sick pay, will be removed. The waiting period before sick pay becomes available will also be reduced, making it easier for workers to take necessary time off when ill.
Banning Exploitative Practices
One of the central elements of the new Bill is the ban on zero-hours contracts. While workers will still have the option to remain on zero-hours contracts if they prefer, those who work regular hours will be entitled to a guaranteed-hours contract. This move is intended to bring more stability to workers who often face unpredictable and insecure employment conditions.
The “fire and rehire” practice, which allows employers to dismiss workers and rehire them on worse terms, has been a topic of significant concern in recent years. The Employment Rights Bill will put an end to this practice, closing the legal loopholes that have allowed it to continue. By shutting down these unscrupulous tactics, the government aims to provide greater job security for workers across the UK.
Flexible Working as the Default
In response to changing work patterns and demands for greater work-life balance, the Employment Rights Bill will make flexible working the default option where practical. Large employers will be required to support flexible working arrangements, recognising that flexible work is key to retaining skilled workers and keeping them engaged in the workforce.
The Bill also aims to promote gender equality in the workplace by requiring large employers to take action on issues like support for employees going through menopause. Protections against dismissal for pregnant workers and those returning from maternity leave will also be strengthened, ensuring that women can remain in the workforce without facing unfair treatment.
The Fair Work Agency will be established as part of the Bill to enforce new employment rights. The agency will focus on areas like holiday pay enforcement, providing support to employers to help them comply with the law. This new body is intended to streamline enforcement and ensure that workers’ rights are upheld.
The government sees these changes as essential to fostering a more equitable and productive labour market. By improving worker protections and addressing unfair employment practices, the Bill is intended to help both workers and businesses thrive in a modern economy.
Reactions to the Employment Rights Bill
Commenting on the release of the Bill, TUC General Secretary Paul Nowak praised the government’s efforts to improve the quality of employment across the country. “Everyone deserves a decent, secure job they can build a life on,” Nowak stated. He noted that the Bill is an important step toward addressing zero-hours contracts, improving access to sick pay and parental leave, and tackling exploitative practices like fire and rehire. Nowak also welcomed the Bill’s provisions for greater union representation, which he said would give workers a stronger voice in the workplace.
However, some concerns have been raised about areas where the Bill could go further. The Bill’s implications for the social care sector are particularly important. New data published by Skills for Care revealed that the social care sector has a vacancy rate of 8.3%, roughly three times higher than the wider economy. On any given day, there are approximately 131,000 vacancies in social care roles, underscoring the sector’s recruitment and retention challenges.
Carers Trust CEO Kirsty McHugh expressed support for much of the Bill, especially its potential benefits for unpaid carers. However, she called on the government to expedite its review of Carers’ Leave, recommending that the leave be made paid and extended to 10 days to help carers remain in the workforce.
McHugh also highlighted the need for proper funding for social care providers, particularly if zero-hours contracts are banned. Many social care providers, she noted, rely on these contracts due to limited funding from local authorities. If the government does not address this funding shortfall, McHugh warned, the impact on local carer organisations could be significant.
