The new Labour Government released a Briefing shortly after the King’s Speech, which set out the legislative agenda.

The headline for employment law purposes is that the Government’s plan is to improve employment rights by introducing two draft bills.

Employment Rights Bill

  • Labour pledged that this would come into force within the first 100 days of it being in power.
  • Although it has not yet been confirmed what it will contain. It is likely to contain a number of changes designed to improve the rights and working conditions for employees, such as the following, which are in Labour’s “Plan to Make Work Pay”:
  • Banning zero-hour contracts
      • giving all workers the right to have a contract with their hours explicitly stated, reasonable notice of any changes in shift patterns and compensation for shifts cancelled or curtailed.
  • Getting rid of ‘fire and re-hire’ practices
  • Day one rights – protection from unfair dismissal, parental leave, sick pay and flexible working arrangements
    > Possibly with some concessions for probationary periods
  • Strengthening entitlement to statutory sick pay
    > Including removing the current lower earnings limit;
  • Extra protections for those off on maternity leave
    > making it unlawful to dismiss for six months after a return to work, except in specific circumstances;
  • Establishment of a Single Enforcement Body
    > Also known as a Fair Work Agency, to strengthen the enforcement of workplace rights;
  • Establishment of a Fair Pay Agreement in the adult social care sector
    >     Following review, assess how and to what extent such agreements could benefit other sectors;
  • Reintroducing the School Support Staff Negotiating Body
    > To establish nation wide T&Cs, career progression routes and fair pay rates;
  • Updating the current legislation on trade unions
    > Removing certain restrictions on trade union activity to ensure industrial relations are based around “good faith negotiation”; and
    > Simplifying the process of statutory recognition and introduction of a regulated route to ensure workers and union members have a reasonable right to access a union with their workplace.

Equality (Race and Disability) Bill
This will reflect existing measures in the Equality Act 2010 in respect of equal pay and gender pay reporting, with a stronger focus on eradicating inequality for ethnic minorities and disabled persons.

Wage rates
Labour pledged to create a “genuine” living wage and remove the current age brackets in place for minimum wage, but this does not require further legislation.

Considerations for Employers
As it is not currently known when the Bills will be drafted or published, it is difficult to say what steps employers ought to take to prepare for them. Some might want to review policies and procedures to highlight which parts will require to be updated in the event that some changes are made in the near future. In particular, it might be beneficial to consider and review policies on probation periods and dismissal processes in light of the potential changes.

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