Labour’s hugely anticipated Employment Rights Bill, with long-awaited reforms to parental and bereavement leave, sick pay, and unfair dismissal rules was unveiled this week – and your reaction has been mixed
Labour unveiled the new Employment Rights Bill this week – and we wanted to know what you thought about it.
The ambitious package contained 28 new measures ripe for discussion, including long-awaited reforms to parental and bereavement leave, sick pay, and unfair dismissal rules.
Responses to the bill have been mixed. Labour unions and worker advocacy groups largely welcomed it, seeing it as a vital step toward enhancing protections for employees, especially those in short-term, flexible jobs (gig economy) – and other precarious workers. Many felt the legislation addresses critical issues such as job security, fair wages, and the right to flexible working, empowering workers to negotiate better terms with their employers.
On the flip-side, business leaders and some industry representatives have voiced concern about potential fallout from the bill. They worry that stricter regulations regarding employee rights, especially around dismissals and gig work, could lead to increased costs and reduced flexibility for businesses, particularly small enterprises. Critics argue that these changes might stifle innovation and hinder job creation, ultimately impacting the economic recovery post-pandemic.
We asked what YOU thought about Labour’s new Employment Rights Bill, and here’s how you responded:
- Does the Employment Rights Bill go far enough in protecting workers?
Yes: 54.7 per cent; No: 45.3 per cent - Are you interested in more flexible working hours?
Yes: 61 per cent; No: 39 per cent - Should zero hours contracts be banned?
Yes: 70.5 per cent; No: 29.5 per cent - Are the changes to statutory sick pay strong enough?
Yes: 57.5 per cent; No: 42.5 per cent - Should there be more protections for self-employed workers?
Yes: 74.1 per cent; No: 25.9 per cent - Will the Employment Rights Bill make a real difference?
Yes: 50.1 per cent; No: 49.9 per cent
‘There is always a hidden, negative impact to employees’
Many of you commented on our original stories, here’s just a snapshot of what some of you had to say:
Dancing4sprinkles: “I work in payroll. I suspect many people don’t realise that when laws are changed in favour of employees, employers look to recoup the additional cost to them by any means they can. As an example when I worked for a large group of retail stores [in the UK] and the national wage was increased, given shop workers are normally low paid the financial impact to the company was huge.
“To offset this cost the company reduced the number of paid sickness days employees were entitled to. There is always a hidden, negative impact to employees when laws are introduced that should protect them. This will happen here. Keir Starmer, take note.”
Cynicaloldie: “[This is] excellent! I have been retired for three years so am no longer looking over my shoulder as in some employments I was during 50 long years of a working life. It is good that many of the fears of losing one’s employment will no longer be a blight to employees. A happy worker is a better worker IMO and experience.”
Kachar: “I don’t agree with zero contract hours. If you’re on one and have no shifts then you’re not earning money to live, then you’re not paying taxes. Yes, companies will have to pay to keep their employees, but more people will actually be working rather than being topped up from UC.”
Concha: “Protection rules for workers is a must. It makes for a more productive workforce. Plus morale is higher.”
Scar84: “Britain is in the grip of its worst sickness crisis in decades, and the Treasury is growing increasingly concerned. According to the latest predictions, one in 12 working-age Britons are expected to claim sickness benefits by the end of the decade, fuelled by a surge in mental health conditions. Only when we cut these benefits and make people work rather than sit at home claiming taxpayer money can the country improve.”
Jah Warrior: “Let’s hope this starts to reduce the disparity between workers and bosses wealth that has grown since Thatcher…”
Summary of the Employment Rights Bill
Don’t expect any of the following changes to kick in anytime soon. Officials are saying we might not see any become law until autumn 2026 at the earliest.
Parental and bereavement leave
The Bill gives ‘day one’ rights for paternity, parental and bereavement leave for millions of workers. Around 30,000 fathers or partners will be eligible for paternity leave, while an extra 1.5 million parents will have the right to unpaid leave from day one. It will also establish a new right to bereavement leave for workers. Pregnant women and new mothers will get beefed up protections from dismissal whilst pregnant, on maternity leave and within six months of returning to work.
Flexible working
The right to flexible working will become the default for all employees, unless the employer can prove it’s “unreasonable”. There are currently eight reasons bosses can refuse requests such as extra costs or struggles to meet customer demand. But it is not clear how narrowly the change will be interpreted. The Government estimates 1.7million people could return to the workforce – who are currently out of the labour market – due to flexible working and other policies.
Sick Pay
Statutory sick pay will be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in. Under the existing system, workers who earn less than an average of £123-per-week do not qualify. There were 1.5million people earning below this threshold in 2022-23. The bill will also end the three-day waiting period before workers can get sick pay. Instead it will kick in on the first day someone is off sick.
Unfair dismissal
The two-year qualifying period for protections from unfair dismissal will be removed. Instead, the aim is for workers to have this right from day one in the job. An estimated 9 million workers who have been with their employer for less than two years will benefit from this change, according to officials. But there will be a consultation on this part of the plan as it’s one of the trickier elements for businesses, with the change likely to come in 2026. The proposed new statutory period – expected to be around nine months – will promise employers a “lighter touch” process covering dismissals.
Zero hours contracts
The bill promises to outlaw exploitative zero hours contracts, by offering workers the right to guaranteed hours. This could affect around 1 million people. Employers will have to offer a guaranteed hours contract based on a 12-week reference period – and workers on casual contracts will also be entitled to a reasonable number of shifts and financial compensation if a shift is cancelled or cut short. However it stops short of the outright ban initially promised to allow people to stay on a zero hours contract if they want to. This issue has proved thorny with unions, some of whom wanted insecure contracts banned completely.
If you want to have your say, you can still take the poll here:
If you can’t see the poll, click here
What do YOU think? Does the bill go far enough? Take our poll above and expand on your feelings in the comments below
