New Employment Rights Bill Aims to Eliminate ‘Exploitative’ Zero Hour Contracts

October 10, 2024 TruthUSA

The bill will introduce flexible working as the default option, along with entitlement to paternity leave and parental leave from day one.

The government has revealed its new plans for workers’ rights, which include eliminating zero-hour contracts and fire and rehire practices. It also includes changes to sick pay and flexible working terms.

Ministers announced the Employment Rights Bill on Thursday. This bill consists of 28 employment reforms, including the end of “exploitative” zero-hours contracts. Employers will need to offer guaranteed hours contracts to zero-hours and low-hours workers who consistently work regular hours over a set period.

The government aims to eliminate “unscrupulous” fire and rehire practices, closing loopholes that allow such practices to continue. Additionally, employees will now be protected from unfair dismissal from their first day on the job, removing the previous two-year qualifying period.

Flexible Working as Standard

Statutory sick pay will become universal, available from the first day of absence rather than the fourth, and the lower-earnings limit will be removed to ensure all employees can access it.

The bill also includes provisions for paternity leave, unpaid parental leave from day one, and statutory bereavement leave entitlement.

Flexible working will become the norm, with employers having to justify any deviations from this default setting. The government believes this will make workplaces more accommodating to employees’ lives.

Gender Pay Gap

Large employers will now be required to create action plans to address gender pay gaps and support employees experiencing menopause. Additionally, there will be increased protections for pregnant women and mothers to prevent their dismissal.

The government intends to establish a new Fair Work Agency to consolidate the enforcement of employment rights, including holiday pay.

Deputy Prime Minister Angela Rayner criticized the current employment laws as outdated and ineffective for both businesses and workers.

Rayner stated, “Our plans to improve working conditions will enhance job security, leading to increased productivity and economic growth, benefiting workers and the economy.”

“This government is implementing the most significant enhancement of workers’ rights in decades, improving pay and productivity with employment laws suitable for a modern economy. We are moving away from an insecure economy plagued by low productivity and insufficient pay,” added the deputy prime minister.

Eliminating Pay Discrimination

Most of the 28 proposed changes in the bill are not expected to take effect before autumn 2026.

Additional measures that were part of the Labour Party’s campaign but not included in this bill will be detailed in the government’s “Next Steps” document for future deliberation and consultation.

These measures may include the right to switch off, preventing employers from contacting staff outside working hours except in emergencies.

The government also plans to tackle “pay discrimination” by expanding the Equality (Race and Disparity) Bill to require large employers to report their ethnicity and disability pay gaps. This measure will be part of the “Next Steps” initiative.

Abolishing ‘Anti-Union’ Law

The government has introduced pro-union policies, including repealing the previous government’s Minimum Service Levels (Strikes) Act, aimed at maintaining minimum service levels during strikes in critical sectors such as healthcare and transportation.

Trade unions have praised the measures, with TUC general secretary Paul Nowak stating, “This Bill marks a significant shift away from the Tories’ economy of low pay, minimal rights, and poor productivity.”

Business organizations have also welcomed the bill, with Confederation of British Industry CEO Rain Newton-Smith commending the government for engaging with businesses and trade unions.

However, the Federation of Small Businesses criticized the plans, calling the legislation rushed and poorly planned, burdening small employers with 28 new measures all at once.

The introduction of the Employment Rights Bill follows the Labour government’s recent pay raises for public sector employees, following union actions like strikes.

In related developments, the British Medical Association accepted the government’s pay deal for junior doctors, ending a long-standing dispute involving multiple strikes. Other healthcare workers have also received pay offers from the government.

PA Media contributed to this report.

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