UK Labour Employment Rights Bill 2024: What It Means for You

The Labour Employment Rights Bill 2024 is set to bring one of the most significant transformations to workers’ rights in the UK in recent decades.

Aiming to create a more equitable, secure, and flexible work environment, the bill introduces reforms that address critical gaps in the current employment framework.

From day-one rights to universal sick pay and the abolition of zero-hours contracts, the bill seeks to modernize employment practices for millions of workers.

Let’s take a closer look at the key changes and what they mean for workers and employers.

Key Changes in Labour’s Employment Rights Bill

The Employment Rights Bill introduces a broad range of reforms, focusing on five core areas:

1. Day-One Rights: Employees gain protection from unfair dismissal from the first day of employment, eliminating the current two-year waiting period.
2. Universal Sick Pay: Statutory Sick Pay (SSP) will be available from day one of illness, with the removal of the lower earnings limit.
3. Zero-Hours Contracts: Workers will have the right to request guaranteed hours after 12 weeks of regular work.
4. Fire and Rehire Ban: The exploitative practice of firing workers and rehiring them on worse terms will be prohibited, with limited exceptions.
5. Strengthened Minimum Wage: The minimum wage will be adjusted to reflect the actual cost of living, and age-related pay bands will be eliminated.

Day-One Rights: Immediate Protections

Under current law, employees must wait two years before they are eligible for protection against unfair dismissal. Labour’s Employment Rights Bill changes this by introducing day-one rights, ensuring that workers are immediately protected.

This includes paternity leave, unpaid parental leave, and bereavement leave, which will be available from the first day of employment.

Key Changes to Day-One Protections

Leave Type	Current Eligibility	New Proposal
Unfair Dismissal Protection	After 2 years	From day one
Paternity Leave	After 26 weeks of employment	From day one
Unpaid Parental Leave	After 1 year of employment	From day one
Bereavement Leave	No universal requirement	Mandatory for all employers

These changes are expected to benefit 9 million workers with immediate protection from unfair dismissal and expand access to parental leave for 1.5 million parents.

Universal Sick Pay: Financial Security from Day One

The bill addresses a critical gap in the current sick pay system by introducing universal sick pay from the first day of illness.

Currently, Statutory Sick Pay (SSP) only begins on the fourth day of illness, leaving many workers without financial support for the first few days of sickness.

The bill also removes the lower earnings limit, allowing workers earning less than £123 per week to qualify for sick pay.

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	Subject to future review

This reform will benefit millions of low-income workers, ensuring that they do not lose income when they fall ill.

Zero-Hours Contracts: Pathway to Guaranteed Hours

Labour’s bill takes a significant step toward regulating zero-hours contracts, giving workers the right to request guaranteed hours after working regular shifts for 12 weeks.

While workers who prefer the flexibility of zero-hours contracts can remain on them, those who seek more stable work arrangements can request a shift to more predictable employment terms.

This change will impact over 1 million workers currently on zero-hours contracts, offering them more income security and consistent work hours.

Fire and Rehire: Ending Exploitative Practices

The practice of fire and rehire, where employers dismiss workers and rehire them on less favorable terms, will be almost completely banned.

This controversial tactic has been used to cut costs at the expense of employees.

The bill introduces a near-total ban, with exceptions only for businesses facing financial collapse.

This reform is seen as a major victory for workers’ rights, offering greater job security and preventing companies from downgrading employment terms without negotiation.

Flexible Working as the Default

Flexible working arrangements will become the default option for employees under the new bill. Employers must accommodate requests for flexible working unless they can demonstrate a compelling reason not to.

This is expected to particularly benefit parents, caregivers, and those seeking a better work-life balance.

The bill also includes measures to support female workers, including requirements for employers to create gender pay gap action plans and to offer support for women experiencing menopause.

Strengthened Minimum Wage: Reflecting the Cost of Living

The bill aims to overhaul how the minimum wage is calculated by making it reflect the cost of living, rather than being based on age or experience.

The age-related pay bands currently in place, which allow younger workers to be paid less, will be abolished. This change will benefit hundreds of thousands of younger workers who are currently earning less due to their age.

Minimum Wage Setting	Current System	Proposed Changes
Basis for Calculation	Based on age and experience	Based on the cost of living
Age-Related Pay Bands	Different wages for different ages	All age groups receive equal pay

What’s Missing: Delayed Reforms

While the bill introduces many transformative changes, some promised reforms are notably absent, including:

• Right to Disconnect: Protections for workers from being contacted outside working hours are delayed, with only guidance provided so far.
• Pay Discrimination: Measures to address pay gaps based on ethnicity and disability are postponed for future consultation.
• Single Status of Worker: The plan to consolidate employee and contractor rights into a single status has also been delayed for further review.

Labour’s Employment Rights Bill promises to reshape the UK’s employment landscape by offering workers day-one protections, ensuring universal sick pay, and banning fire and rehire practices.

With a focus on job security, fair pay, and work-life balance, the bill provides a strong foundation for a more equitable and flexible workplace.

While some reforms have been delayed, the proposed changes reflect Labour’s commitment to improving conditions for millions of workers across various industries.

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