On July 17, 2024, His Majesty King Charles III outlined the government’s priorities during the State Opening of Parliament. A central announcement was the introduction of the Employment Rights Bill, part of the government’s ‘Plan to Make Work Pay: Delivering a New Deal for Working People’. This Bill proposes significant changes to employment legislation, aiming to improve working conditions and protect employee rights.
Major Provisions of the Employment Rights Bill
Banning Zero-Hour Contracts:
- Workers will be entitled to contracts reflecting their regular working hours.
- Employers must provide reasonable notice of shift changes and compensation for cancelled or shortened shifts.
Ending ‘Fire and Rehire’ Practices:
- The Bill aims to end ‘Fire and Rehire’ and ‘Fire and Replace’ practices by reforming existing statutory codes.
Introducing Day-One Employment Rights:
- Basic rights such as parental leave, sick pay, protection from unfair dismissal, and default flexible working conditions will be granted from the first day of employment.
Strengthening Statutory Sick Pay:
- The lower earnings limit will be removed, making Statutory Sick Pay accessible to all workers and eliminating the waiting period.
Protecting New Mothers:
- It will be unlawful to dismiss a woman who has recently returned to work after having a baby for six months, except under specific circumstances.
Establishing the Fair Work Agency:
- A new Single Enforcement Body, the Fair Work Agency, will be created to enhance the enforcement of workplace rights.
Creating Fair Pay Agreements:
- Initially implemented in the adult social care sector, with potential expansion to other sectors after evaluation.
Reinstating the School Support Staff Negotiating Body:
- This body will set national terms and conditions, career progression pathways, and fair pay rates.
Additional Legislative Proposals
- Draft Equality (Race and Disability) Bill: This draft bill aims to ensure equal pay for ethnic minorities and disabled individuals, mandating pay gap reporting for employers with at least 250 employees and simplifying the process for filing equal pay claims.
- Skills England Bill: Aimed at developing a highly skilled workforce by reforming the apprenticeship levy and uniting various stakeholders, this bill will transfer responsibilities from the Institute for Apprenticeships and Technical Education to Skills England.
Action Steps for Employers
- Review and Update Employment Contracts: Ensure all contracts, particularly zero-hour contracts, comply with the new regulations.
- Update HR Policies: Implement clear procedures for dismissal processes and new rights, such as day-one flexible working rights.
- Stay Informed: Keep up-to-date with the proposed changes in the Employment Rights Bill to ensure compliance and take advantage of new opportunities.
If you or your business needs any additional information or support in regards to legislative changes please do not hesitate to contact us at info@brookwoodrec.com