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The latest on the Employment Rights Bill

July 2024

In the recent King’s Speech, the new Labour Government reconfirmed its commitment to banning ‘exploitative’ work practices and enhancing employment rights.  Exactly what will be included in the Employment Rights Bill, known as the New Deal for Working People, is yet to be announced, but it is likely to include the following:

  • Banning ‘exploitative’ zero-hour contracts and giving workers the right to a contract reflecting their regular working hours, based on a 12-week reference period. The intention is to end 'one-sided' flexibility and ensure a baseline level of security and predictability for all jobs. 
  • Ending 'Fire and Rehire' in anything other than exceptional circumstances, e.g. where it would be the only way of preserving the viability of a business. The practice of ‘Fire and Rehire’ will also be subject to a more robust Code of Practice.
  • Parental leave, sick pay and protection from unfair dismissal will be made available to all workers from the first day of employment, although, in respect of unfair dismissal, probationary periods for assessing new hires will still be allowed. 
  • Statutory Sick Pay will be strengthened by removing the lower earnings limit and the waiting period 
  • Default Flexible Working for all workers unless it is not reasonably feasible.
  • Enhanced protections for new mothers, making it unlawful to dismiss a woman who has had a baby for six months after her return to work, except in specific circumstances (still to be defined).
  • Simplifying the process of union recognition and strengthening the rights for trade unions to organise, represent and negotiate.

The new Labour Government has promised to introduce legislation on its New Deal for Working People within the first 100 days of coming to office, but these are significant changes – especially in respect of day one unfair dismissal rights - and it will take some time before legislation comes into effect, not least because the government has committed to consulting with business on its plans.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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