The Employment Rights Bill, spearheaded by Angela Rayner, promises the biggest overhaul of workers’ rights in a generation – but has faced heavy criticism from businesses
Nearly one million agency workers will be included in a ban on “exploitative” zero-hour contracts as part of amendments to the Employment Rights Bill.
Tweaks to the legislation include a boost to sick pay for low paid workers and tougher rules to stop firms from carrying out “fire and rehire”. The landmark bill promises to be the biggest overhaul of workers’ rights in a generation – but has faced heavy criticism from businesses.
Deputy Prime Minister Angela Rayner said: “For too long millions of workers have been forced to face insecure, low paid and irregular work, while our economy is blighted by low growth and low productivity. We are turning the tide – with the biggest upgrade to workers’ rights in a generation, boosting living standards and bringing with it an upgrade to our growth prospects and the reforms our economy so desperately needs.”
Here’s what you need to know about the reforms.
Zero-hours contract ban
The bill promises to outlaw “exploitative” zero-hours contracts, by offering workers the right to guaranteed hours. It stops short of the outright ban initially promised to allow people to stay on a zero hours contract if they want to.
Employers will have to offer a 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.
The new amendment closes a loophole so agency workers are explicitly covered to make sure they get a contract that reflects the hours they regularly work.
Sick pay
Statutory sick pay will be strengthened, removing the lower earnings limit for all workers and removing the three-day waiting period. Under existing rules, workers who earn less than an average of £123-per-week do not qualify. The bill will also end the three-day waiting period so sick pay will kick in on the first day someone is off work.
Under a new amendment, 1.3 million people on low wages will get 80 per cent of their normal weekly earnings or the current rate of Statutory Sick Pay – whichever is lowest.
Statutory sick pay is currently worth £116.75 a week, but is rising to £118.75 in April. The Government said lower paid workers people will be up to £100 better off a week under the new rules.
Fire and rehire
Under the new plans, the Government will ramp up the pressure on rogue employers trying to “fire and rehire” workers. An amendment will increase the maximum period of the protective award from 90 days to 180 days.
This will mean employment tribunals can grant larger awards to workers when their boss fails to meet requirements during redundancy consultations.
What’s already in the Bill?
The Bill gives “day one” rights for paternity, parental and bereavement leave for millions of workers. Pregnant women and new mothers will get stronger protections from dismissal whilst pregnant, on maternity leave and within six months of returning to work.
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.
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.
What’s missing?
Some of Labour’s commitments on workers’ rights are not included in the bill, including the right to switch off – preventing bosses from hounding their employees out of hours on email and text.
This will be enforced through a statutory code of conduct for employers, which is expected during this Parliament.
