The government has acted quickly to bring in new rights at work in its Employment Rights Bill. Ian Taylor reports
The government’s promised Employment Rights Bill, published this month, was hailed as “the biggest upgrade to workers’ rights in a generation” by prime minister Keir Starmer.
Employers’ representatives were more circumspect while welcoming the opportunity to consult on the detail. UKHospitality chief executive Kate Nicholls said: “I’m pleased the government has recognised the importance of flexibility to both workers and businesses. This is crucial for hospitality.”
Helen Dickinson, chief executive of the British Retail Consortium, agreed, saying the industry “stands ready to work with government to ensure these reforms are a win:win for employers and colleagues”, while noting: “Many of the provisions are things responsible retailers already do.”
Four provisions stand out. First, protection from unfair dismissal from the first day in a job, but with a “less onerous” process for employers to dismiss someone on probation. The existing two-year wait for protection from unfair dismissal will be removed and the government consult on a statutory probation period.
Second, employers who refuse requests for flexible working will need to prove the refusal “reasonable” –making flexible work “the default where practical”.
Third, workers will have a right to a contract reflecting their regular work pattern, ending zero-hours contracts – although the details have to be worked out.
Fourth, businesses will find it harder to change employees’ terms and conditions – ending the practice of ‘fire and rehire’ unless there is an “immediate” risk of company failure.
The provisions will mean change in many workplaces. At least one in three employees have been in a job less than two years and more than one million are on zero-hour contracts.
The government will also strengthen statutory sick pay, “removing the lower earnings limit and cutting out the period before sick pay kicks in”; establish a new right to bereavement leave; and promises “stronger protections for pregnant women and new mothers” including protection from dismissal whilst pregnant, on maternity leave or within six months of returning to work.
Much of the detail is to come – including the process for dismissing workers during probation. In a document on ‘Next Steps’ the government suggests a statutory nine-month probation period and “tribunals not being able to award the full compensatory damages” if a dismissal is ruled ‘unfair’.
This document also outlines future plans which include reviews of parental leave and carers’ leave, a ‘Right to Switch Off’ “preventing employees being contacted out of hours”, and a commitment to require large employers to report ethnicity and disability pay gaps.
A new Fair Work Agency will enforce rights at work and provide guidance to employers.
The Bill covers just 28 of more than 75 measures Labour set out before the election, leading the head of the Recruitment & Employment Confederation Neil Carberry to say: “The real stuff is still to come.”