Labour’s Employment Rights Bill Proposes Major Workplace Reforms

Labour is preparing to introduce an Employment Rights Bill, which is expected to bring significant changes to workplace legislation in the United Kingdom. The bill, anticipated to be tabled in the coming days, is being spearheaded by Deputy Prime Minister Angela Rayner. Described as aiming to “strengthen the collective voice of workers,” the bill is part of Labour’s broader initiative titled ‘Plan to Make Work Pay: Delivering A New Deal for Working People’.

The employment reforms were prominently featured in Labour’s election manifesto, which asserted that these measures would “stop the chaos and turn the page to create a partnership between business and trade unions.” However, experts predict a challenging balancing act for the party, as some business leaders may perceive the changes as disproportionately burdensome.

Jonathan Reynolds, Labour’s business secretary, has dismissed concerns over the proposed reforms as “scaremongering.” He stated, “I don’t think it’s onerous what we’re putting forward, but I do think it will make a difference to people’s lives.”

Caspar Glyn KC, chair of the Employment Lawyers Association, commented that the bill “promises to be the greatest overhaul of workplace rights for 30 years.” He added that while employees and unions may benefit from strengthened rights, these changes come “with a concomitant cost and reduced flexibility for business.”

The bill is expected to introduce several new measures, including making parental leave, sick pay, and protection from unfair dismissal available from the first day of employment. Labour has indicated that while employers can still impose probationary periods, these will be limited to six months. “How impactful this will be depends on how probationary periods are treated,” Glyn remarked.

Additionally, the bill aims to tackle exploitative zero-hour contracts by ensuring workers receive a contract that accurately reflects the hours they work. This includes compensating workers for shift changes made without reasonable notice.

Labour also intends to address controversial ‘fire and rehire’ practices, which involve employers dismissing staff to rehire them under less favorable conditions. This issue gained attention during a dispute at Tesco, where the supermarket proposed such actions against some distribution staff.

Another proposed measure, though not part of Labour’s initial announcement, is granting employees the right to ignore work communications outside regular hours, promoting work-life balance. However, reports suggest that Labour might have retreated from this stance following business opposition.

Beyond the bill, Labour has committed to making the minimum wage a “genuine living wage,” adjusting it to reflect the cost of living and removing “discriminatory age bands” to standardize pay for adults across age groups.