Exploitation is out and employment rights are in. The focus is on a new partnership between business, trade unions and working people as an essential driver of growth, with full consultation on the best way of implementing this.
An Employment Rights Bill is to be introduced in the first 100 days, plus a genuine living wage that takes proper account of the cost of living without discriminatory age bands being applied.
The Bill is likely to include the following significant changes for the whole of Great Britain:
- A ban on zero-hour contracts that exploit workers with the onus on security of work and predictability of hours instead. To that end, it is anticipated that workers will be compensated for shifts cancelled or shortened.
- A new statutory code and more effective remedies to address the controversial ‘Fire and Rehire’ practice.
- The introduction of Day 1 rights for parental leave, sick leave and protection from unfair dismissal. The only likely limitation will be the ability of the employer to use probationary periods to assess a new employee’s performance.
- The extension of Statutory Sick Pay to all workers by removing the lower earnings limit (currently £123 per week) and waiting period of 3 days.
- The introduction of a Day 1 flexible working right for all workers, with businesses required to accommodate this as far as reasonably possible.
- Increased protection for new mothers by prohibiting dismissal for six months after their return to work, except in very limited circumstances.
- The creation of a Fair Work Agency, to strengthen the enforcement of workplace rights.
- The introduction of a Fair Pay Agreement in the adult social care sector and thereafter determining to what extent this should apply to other sectors.
- The reinstatement of the SchoolSupport Staff Negotiating Body, to establish national terms and conditions, career progression routes, and fair pay rates.
- The amendment of trade union legislation to remove unnecessary restrictions on trade union activity and to ensure the principles of good faith negotiation and bargaining are upheld.
- The extension of the right to join a trade union by simplifying the process of statutory recognition and the introduction of a regulated route.
The Government’s hope is that by extending workers’ rights to Day 1, there will be a greater chance that workers will switch jobs and thereby earn higher wages and increase their productivity, reversing flatlining GDP per capita and low real wage growth.
Separately, there will be a draft Equality (Race and Disability) Bill to enshrine the full right to equal pay for the disabled and ethnic minorities with a proposed introduction of mandatory ethnicity and disability pay reporting.
It will be interesting to see whether such radical proposals achieve their stated aims. What is certain, however, is that with such a large parliamentary majority, the Government will face little opposition.
Businesses and workers should therefore be alert to the proposed changes and ensure that their contractual terms and policies and procedures are drafted to take them into account. The benefits to be gained are considerable, not least the promotion of a culture of fairness and wellbeing and the reduction of workplace disputes.
