Flexible working and day-one parental leave part of new Employment Rights Bill
Today, the Government overhauls workers' rights in the new Employment Rights Bill, Labour's biggest step towards making a promised 'seismic shift' for employees.
However, most of these 28 separate changes will not take effect for two years, or before the autumn of 2026, following a consultation and implementation period.
As part of the main revisions, unpaid parental leave is becoming a right from day one, instead of one year.
Flexible working will also be made 'the default where practical', says the Bill, so managers will be expected to consider flexible working requests made from day one and grant permission unless they can prove it is unreasonable.
Large employers will have to create plans to address gender pay gaps and support employees through menopause. As the Bill contains plans to terminate 'exploitative zero-hour contracts' and 'unscrupulous and unfair' firing practices, protections agains dismissal will be 'strengthened for pregnant and new mothers'.
Workers will be entitled to statutory sick pay (SSP) from the first day they are ill, rather than the fourth day. Unpaid bereavement is also going be a 'day one' right.
What other changes are being put in place?
In a 'lighter touch' approach, the current tw0-year qualifying probation period for protections from unfair dismissal will be removed. Officials say this will benefit nine million more workers who have been with their employers for under two years, and employees will still be able to claim for unfair dismissal. However, a nine-month probation period is being proposed where employment can be terminated without a full review.
The bill will establish a body called the Fair Work Agency to enforce rights like holiday pay.
Fathers are also eligible for paternity leave and unpaid parental leave from the first day of their employment, rather than 26 weeks. This means 30,000 fathers or partners will be eligible for paternity leave. Maternity leave is already a right from day one. A full review of all parental leave rights is promised in addition to the bill.
In terms of zero-hour contracts, employers will have to offer a number of guaranteed hours based on a 12-week period following research that shows 84% of these workers would rather have guaranteed hours.
The Government will take into account the cost of living when setting the minimum wage, changing the requirements of the Low Pay Commission
Fire and rehire practices will be forbidden, so employers cannot sack employees and rehire them on worse terms and conditions.
The Government said the bill marked the 'biggest upgrade to rights at work for a generation'. All these changes are with the intention of 'keeping people in work for longer', 'increasing staff retention' and 'reducing recruitment costs'.
Unions see the measures as a welcome departure from the low-productivity and 'battered' economy the Conservative government oversaw.
Deputy Prime Minister Angela Rayner noted: 'This Government is delivering the biggest upgrade to rights at work for a generation, boosting pay and productivity with employment laws fit for a modern economy. We’re turning the page on an economy riven with insecurity, ravaged by dire productivity and blighted by low pay.' She said the UK's 'out-of-date' employment laws were 'failing businesses and workers alike'.
'Our plan will give the world of work a much-needed upgrade, boosting pay and productivity,' agreed Business Secretary Jonathan Reynolds.
'The best employers know that employees are more productive when they are happy at work. That is why it’s vital to give employers the flexibility they need to grow whilst ending unscrupulous and unfair practices.
'This upgrade to our laws will ensure they are fit for modern life, raise living standards and provide opportunity and security.'
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