July’s King’s Speech unveiled Labour’s legislative agenda for their early months in government. Two employment bills were announced. The Prime Minister’s accompanying briefing note provided some details, indicating Labour’s commitment to fully implementing their ‘New Deal for Working People’.
According to the briefing note, the Employment Rights Bill will likely include the following:
- granting parental leave, sick pay, and protection from unfair dismissal from the first day of employment (with special rules for probationary periods);
- prohibiting zero-hour contracts, ensuring workers have to a right to a contract that reflects their regular hours;
- ending ‘fire and rehire’ and ‘fire and replace’ by reforming the law and replacing the statutory code;
- eliminating the lower earnings limit and waiting period for Statutory Sick pay;
- making flexible working the default for all workers from day one and requiring employers to accommodate this as far as is reasonable;
- making it unlawful to dismiss a woman for six months after they return from maternity leave (with certain exceptions);
- creating the Fair Work Agency to enforce workplace rights;
- introducing a Fair Pay Agreement in the adult social care sector;
- repealing the law on minimum service levels for industrial action;
- simplifying the process of statutory recognition for trade unions; and
- introducing a right for workers and union members to access a union within workplaces.
Separately, a draft Equality (Race and Disability) Bill proposes to “enshrine the full right to equal pay law” for disabled people and ethnic minorities. The same bill also proposes mandatory ethnicity and disability pay gap reporting.
The King’s Speech also referred to reforming the apprenticeship levy. During the election campaign, Labour spoke about relaxing the rules in relation to the levy, so that half of it could be used to train existing staff.
Some of Labour’s election pledges do not require primary legislation in order to take effect. One of these is the pledge to provide a genuine living wage for working people. The first steps have already been taken to introduce this, with the Government altering the Low Pay Commission’s remit at the end of July, to require it to factor in the cost of living when recommending minimum wage rates.
We now await the draft legislation itself.
Find out how we can help. Contact our Employment Law team on 01803 213251 today, without obligation.
