Wednesday, March 5, 2025

Labour announces employment law reforms, including zero-hour contract ban

The UK Government has proposed changes to employment laws, including a ban on zero-hour contracts that will also apply to agency workers. The reforms, part of Labour’s Employment Rights Bill, aim to strengthen worker protections and regulate umbrella companies.

Business Secretary Jonathan Reynolds stated that agency workers must be included in the zero-hour contract ban to prevent loopholes. The Government believes that all workers should have contracts reflecting their regular hours.

Planned changes also include revisions to collective redundancy rules, which could extend the maximum protective award from 90 to 180 days if employers fail to meet consultation obligations.

Labour has also updated trade union regulations to align with modern work practices. Proposed measures include extending the validity of industrial action mandates from six months to a year and requiring a 10-day notice period before strikes.

The Government says these reforms aim to balance the interests of workers, businesses, and the public.

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