Following Labour’s landslide victory, King Charles delivered the Government’s first King’s Speech on 17th July 2024, opening the new parliament. Although delivered by the monarch, the speech is written by the Government to outline its priorities.
The speech and briefing notes included 40 bills, but here we focus on two: the Employment Rights Bill and the Draft Equality (Race and Disability) Bill.
This article builds on our previous analysis of Labour’s proposed employment law changes, including ‘Day One Rights’ and worker status.
Employment Rights Bill
The Employment Rights Bill is to be introduced within the first 100 days of the new parliament – so at the start of October 2024 – delivering on Labour’s New Deal for Working People.
Here are some of the expected changes:
- Banning of zero-hour contracts. Although many employers will use zero-hour contracts, the government are intending to ban the use of ‘exploitative’ zero hours arrangements. This will significantly change the rights of such workers who will acquire the right to a contract that reflects the number of hours they regularly work, and entitlement to reasonable notice of any changes in shift with proportionate compensation for any shifts cancelled or curtailed.
- Making parental leave, sick pay and protection from unfair dismissal a day one right. This is a significant change from the current position whereby an employee must accrue two years’ service before they are protected from unfair dismissal. Proper implementation of probationary periods will become crucial.
- Flexible working will become the default for all workers from day one, and employers will have to accommodate this.
- Removing lower earnings limit for Statutory Sick Pay (SSP). Employers should be aware that employees will be entitled to SSP regardless of their salary. Currently, only employees who earn average weekly earnings of £123 or above are entitled to SSP.
- Strengthening protections for new mothers. It will be unlawful for employers to dismiss a woman who has had a baby for six months after her return to work, except in specific circumstances.
- Updating trade union legislation so it is fit for a modern economy. This includes removing restrictions on trade union activity, such as minimum service levels.
There are also other commitments, including plans to establish a Fair Pay Agreement in the adult social care sector and creating a new Single Enforcement Body, known as the Fair Work Agency, to strengthen enforcement of workplace rights.
Draft Equality (Race and Disability) Bill
The Government indicated that they will introduce a new race equality bill to root out the structural injustices that make it harder for people of colour, and those who are disabled, to thrive at work.
Employers will have to be mindful of this, and in some cases, take action to comply with their obligations under the Bill when enacted.
The intention of the draft Bill is to tackle inequality for ethnic minorities and disabled people by:
- Enshrining in law the full right to equal pay for ethnic minorities and disabled people. This is designed to make it easier for both groups to bring unequal pay claims, and employers should be mindful of this when setting salaries for their employees.
- Introducing mandatory ethnicity and disability pay reporting for larger organisations (250+ employees). The aim of this is to help close the ethnicity and disability pay gap.
When will these bills be introduced and do employers need to take any steps now?
The Government intend to introduce the Employment Rights Bill within the next few months, and there will be few barriers to the Bill passing through both Houses of Parliament given the scale of Labour’s majority.
It’s less clear when the Draft Equality (Race and Disability) Bill will be introduced to parliament, but likely before the end of the year.
From an employer’s perspective, this does not mean that implementation of the proposed measures will come into force straight away, so there is nothing employers need to do immediately.
However, if you would like to take pre-emptive measures, especially regarding zero-hour contracts and probationary periods, please contact us for more information.
Sean McEntee, Solicitor in our Employment team.
