Government is introducing a new Employment Rights Bill which brings forward 28 individual employment reforms, from ending zero hours contracts and fire and rehire practices to establishing day one rights for paternity, parental and bereavement leave for millions of workers.
Its also intended to strengthen statutory sick pay, remove the lower earnings limit for all workers, cut out the waiting period before sick pay kicks in, and scrap the existing two-year qualifying period for protections from unfair dismissal.
Flexible working will be made the default where practical, and large employers will be required to create action plans to address gender pay gaps and support employees through the menopause, as well as strengthened protection against dismissal for pregnant women and new mothers.
The Government says getting the labour market moving again is essential to economic growth, with one in five UK businesses with more than 10 employees reporting staff shortages. It says flexibility, for workers and businesses alike, is key to answering this challenge and is at the heart of the legislation to upgrade the law to ensure it is fit for modern life and a modern economy.
It’s also intended to consult on a new statutory probation period for new hires, allowing for a proper assessment of an employee’s suitability to a role as well as reassuring employees that they have rights from day one, enabling businesses to take chances on hires while giving more people confidence to re-enter the job market or change careers, improving their living standards.
Deputy Prime Minister Angela Rayner said: “This is the biggest upgrade to rights at work for a generation, boosting pay and productivity with employment laws fit for a modern economy.
“The UK’s out-of-date employment laws are holding our country back and failing business and workers alike. Our plans to make work pay will deliver security in work as the foundation for boosting productivity and growing our economy to make working people better off and realise our potential.”