Deputy PM Angela Rayner has vowed to ‘turn the tide’ for millions of Brits with an overhaul of workers rights to help people struggling with low pay and precarious work
Labour will publish its long-awaited workers rights legislation today in a new bill described as the biggest shake-up to employment rights in a generation.
Deputy PM Angela Rayner vowed to “turn the tide” for millions of Brits after years of Tory rule left people struggling with low pay and precarious work. The plan, first published in 2021, has been through fierce wrangling with unions and business groups before being laid in Parliament today.
The Employment Rights Bill, which the Government promised to bring forward in the first 100 days, is expected to become law next year once it’s been scrutinised by MPs and peers.
Some of Labour’s commitments on workers’ rights are not included in the bill, which includes 28 separate changes. Other vows like the right to switch off – preventing bosses from hounding their employees out of hours – can be done through existing legislation. More details are expected to come today.
Here’s what we know about the bill so far – and what it means for you.
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.
