UK Government Unveils Major Labour Overhaul with Worker Protections

Millions of workers in the United Kingdom are set to receive enhanced protections from unfair dismissal under a proposed Employment Rights Bill. This legislation aims to ensure that workers can access statutory sick pay from the onset of illness and claim unpaid parental leave from the first day of employment. These changes, announced recently, are expected to be implemented after an extended period of consultation, with the earliest enactment predicted to be in autumn 2026.

The UK government has described the 28 measures contained in the bill as the most substantial updates to employment rights in a generation. However, there is apprehension among business groups regarding how these changes will affect their operations. Currently, employees need to complete two years of service to qualify for unfair dismissal protection—a threshold the legislation seeks to abolish in favor of immediate protection.

Deputy Prime Minister Angela Rayner commented on the intended reforms, stating, “We’re raising the floor on rights at work to deliver a stronger, fairer and brighter future of work for Britain.” The government also intends to consult on establishing a new statutory probation period for new hires, typically proposed to last six months, although opinions are divided on this specific measure.

Some nine million employees who have been with their current employer for less than two years may benefit from these reforms. Additionally, about 30,000 fathers or partners could become eligible for paternity leave, while 1.5 million parents would have the right to unpaid leave from day one of their employment.

Business responses to the proposed bill have been mixed. Dominic Ponniah, CEO of the cleaning company Cleanology, expressed that the reforms cause businesses to be “very, very nervous,” affecting hiring strategies during uncertain economic times. Similarly, Tina McKenzie from the Federation of Small Businesses criticized the bill as “rushed, clumsy, chaotic, and poorly planned.”

The bill also proposes changes concerning zero-hours contracts. Employers will have to offer contracts based on hours worked over a 12-week period, provide reasonable notice of shift changes, and compensate employees if shifts are canceled or curtailed.

There is some contention about zero-hours contracts, often criticized for lacking steady income and benefits. UKHospitality supports them as beneficial to workers requiring flexibility. Some employees, like university student Ruby, find such contracts advantageous as they provide the flexibility to choose shifts based on personal schedules.

While the bill includes significant measures to redefine employment rights, some anticipated reforms, such as the “right to switch off” from work communications outside of hours, were not included. Gary Smith of the GMB union called it a “groundbreaking first step” but noted that more is needed to eliminate potential loopholes.

Conservative shadow business secretary Kevin Hollinrake commented on the Labour’s proposal by stating the importance of business and economic certainty, cautioning against policies that may “drive down growth and slow productivity.” The discourse highlights the delicate balance the UK government seeks to maintain between boosting workers’ rights and supporting economic growth.