Labour’s Employment Rights Bill 2024 promises one of the most significant transformations to workers’ rights in decades.
With a focus on creating a more secure, fair, and flexible working environment, the bill addresses many current gaps in employment law.
From stronger day-one protections to banning exploitative practices like zero-hours contracts and fire and rehire, it brings vital changes that will affect millions of workers across the UK.
Let’s dive into the key changes, how they’ll impact both employees and employers, and what the future holds as Labour sets out to modernize the workforce.
What Is Labour’s Employment Rights Bill?
The bill is part of Labour’s broader agenda to improve job security, pay equality, and workplace flexibility. Key objectives include:
- Strengthening protections against unfair dismissal from day one.
- Improving pay equality, including adjustments to the minimum wage.
- Enhancing flexibility in working hours, parental leave, and remote work.
- Addressing gender and pay inequalities through mandatory action plans.
- Banning exploitative practices like zero-hours contracts and fire and rehire.
Each of these goals is backed by specific reforms, designed to make the workplace more equitable and responsive to today’s workforce needs.
Day-One Rights: Immediate Protection
One of the most impactful changes in the bill is the introduction of day-one rights, meaning workers will be protected against unfair dismissal from the first day of employment.
Currently, workers need to be employed for two years to qualify for these protections. By eliminating this waiting period, Labour’s bill aims to make job security immediate and accessible to all.
Expanding Parental Leave
Day-one rights will also extend to paternity leave and unpaid parental leave. Under current rules, these benefits are only available after a certain period of employment. Labour’s bill changes this, making these rights available immediately to fathers, partners, and parents.
| Leave Type | Current Eligibility | New Proposal |
|---|---|---|
| Unfair Dismissal | After 2 years | From day one |
| Paternity Leave | After 26 weeks | From day one |
| Unpaid Parental Leave | After 1 year | From day one |
| Bereavement Leave | No universal policy | Mandatory for all |
Impact on Workers
- 9 million workers will benefit from day-one protection against unfair dismissal.
- 30,000 fathers or partners will gain immediate access to paternity leave.
- 1.5 million parents will gain immediate access to unpaid parental leave.
Universal Sick Pay from Day One
Labour’s bill also transforms statutory sick pay (SSP) by making it available from the first day of illness, rather than the fourth day as per current law.
This change offers better protection for workers needing to take time off due to sickness, especially those in lower-paid or precarious jobs.
Key Changes to Sick Pay
- Lower Earnings Limit Removed: Previously, workers earning below £123 per week couldn’t access SSP. This earnings limit will be removed, making sick pay accessible to part-time and low-income workers.
- Sick Pay from Day One: Currently, sick pay begins on the fourth day of illness. The bill ensures it starts on the first day, offering immediate financial protection.
| Statutory Sick Pay | Current | Proposed |
|---|---|---|
| Start Date | From the fourth day of illness | From the first day of illness |
| Lower Earnings Limit | £123 per week | Removed |
| Rate | £116.75 per week | No changes yet, under review |
This reform will benefit millions of low-income workers, ensuring they do not lose wages when they fall ill.
Ending Zero-Hours Contracts
Labour’s bill also addresses the widespread use of zero-hours contracts, which offer no guaranteed working hours and leave workers vulnerable to income instability.
The new law will allow workers to request guaranteed hours after 12 weeks of regular work.
While those who prefer the flexibility of zero-hours contracts can continue under those terms, the change offers more stable work options for those seeking job security.
- Over 1 million zero-hours workers will gain the right to request a stable contract.
Ban on Fire and Rehire Practices
The bill will nearly eliminate the fire and rehire tactic, where employers fire workers and then rehire them under worse conditions.
This practice will be banned except in extreme cases, such as financial emergencies. This protection strengthens job security by preventing employers from exploiting workers with inferior terms of employment.
Flexible Working Becomes the Default
Flexible working arrangements will become a default option, particularly benefiting parents and caregivers. Employers will need to accommodate flexible work requests unless they have a compelling business reason not to.
This reflects the growing demand for a better work-life balance and will likely boost employee satisfaction and retention.
- Employers must also address gender inequality with tailored action plans and provide specific support for female workers going through menopause.
Strengthened Minimum Wage
Labour’s bill reforms the minimum wage by linking it to the actual cost of living, rather than age or experience. This will eliminate age-related pay bands, ensuring that younger workers are paid the same as their older colleagues for the same work.
| Minimum Wage | Current System | Proposed Changes |
|---|---|---|
| Calculation | Based on age and experience | Based on the cost of living |
| Age-Related Pay Bands | Different wages for different ages | Equal pay across all ages |
This change is expected to provide hundreds of thousands of young workers with a well-deserved pay increase.
What’s Missing?
While Labour’s Employment Rights Bill introduces sweeping reforms, a few key promises have been delayed:
- Right to Disconnect: While Labour initially promised to protect workers from being contacted outside working hours, this bill only includes guidance on the matter.
- Pay Discrimination: Measures to address pay gaps based on ethnicity and disability will be introduced separately in future legislation.
- Single Status of Worker: The consolidation of employee and contractor rights into a single status has been postponed for further consultation.
Labour’s Employment Rights Bill marks a monumental shift in UK employment law, promising more job security, fair pay, and flexibility for millions of workers.
With its focus on day-one protections, banning exploitative practices, and making sick pay and flexible working the norm, the bill sets the stage for a fairer workplace.
While some measures are delayed, the core changes signal a new era in workers’ rights that will benefit employees across a range of industries.
FAQs
What are day-one rights?
Day-one rights provide protections like unfair dismissal and parental leave from the first day of employment.
Will zero-hours contracts be banned?
Workers will have the right to request guaranteed hours after 12 weeks of regular work.
When will sick pay start under the new bill?
Sick pay will begin on the first day of illness instead of the fourth.
How does the bill address flexible working?
Flexible working will become the default, and employers must accommodate it unless there’s a valid business reason not to.
Will the minimum wage change for younger workers?
Yes, the bill removes age-related pay bands, giving all workers equal pay based on the cost of living.
