THE NEW GOVERNMENT GETTING DOWN TO BUSINESS
After the Labour landslide at the start of the summer, here’s a summary of the key changes in employment matters under the new Government expected under the proposed Employment Rights Bill and Equality (Race and Disability) Bill as announced in the King’s Speech on 17th July 2024.
EMPLOYMENT RIGHTS BILL
- First day employment rights:
Parental leave, sick pay, and protection from unfair dismissal from Day 1 of employment. There will be specific rules for probationary periods. - Zero-hour contracts:
These will be outlawed and workers will have the right to a contract that reflects their regular working hours. - Fire and rehire practices:
The Government plans to end ‘fire and rehire’ tactics by employers, replacing the existing statutory code with more robust legislation. - Statutory sick pay:
The lower earnings limit and waiting period for statutory sick pay will be eliminated, ensuring more inclusive coverage. - Flexible working:
Flexible working arrangements will become the default from Day 1 (which they already are!) with employers required to accommodate this as far as reasonably possible. It is thought that there may be an intention to toughen the current Flexible Working Regulations to make it more difficult to reject requests. - Protection after maternity leave: It will become unlawful to dismiss a woman for six months after her return from maternity leave, with certain exceptions.
- Fair work agency: A new agency will be established to enforce workplace rights.
- Fair pay agreement: This will specifically target the adult social care sector, aiming to ensure fair wages within this critical industry.
- Industrial action: The Government plans to repeal the law on minimum service levels during industrial action.
- Union recognition and access: The process of statutory recognition for trade unions will be simplified, and workers will gain a right to access unions within workplaces.
EQUALITY (RACE AND DISABILITY) BILL
1.
- Equal pay:
The Bill would mirror the equal pay principle on the basis of sex and enshrine the right to equal pay for disabled people and ethnic minorities.
- Pay gap reporting:
Mandatory reporting on ethnicity and disability pay gaps will be introduced.
But when?
Whilst we are expecting the first drafts of these bills by mid to late October 2024, they would need to follow their usual courses through both houses of parliament and are subject to amendments along the way.
This will doubtless take several months before they become law and there may need to be follow-up legislation or codes of practice – or both – to get up and running.
For example, the headline Day 1 unfair dismissal rights is going to require an updated (or new) Acas Code of Practice, which will require formal consultation.
Our view is that this change will be not be implemented until late 2025 or early 2026.
Please contact The Pinnacle Partnership should you need guidance and specific advice on these or any employment legal related issues on 0330 323 0435 or by email – info@pinnaclepartnership.co.uk