The UK government has introduced a new Employment Rights Bill today (10 October) ‘to help deliver economic security and growth to businesses, workers and communities’.
The government cited data that found one in five UK businesses with more than 10 employees are experiencing staff shortages.
To support workers, the new bill has removed the two-year qualifying period for protections from unfair dismissal.
The bill features 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.
The lower earnings limit and the waiting period for statutory sick pay will also be removed.
Unite the union has criticised the bill for not going far enough and believes the government has failed to properly ban zero-hours contracts and ‘fire and rehire’.
Unite general secretary Sharon Graham said: “This bill is without doubt a significant step forward for workers but stops short of making work pay.
“The end to draconian laws like Minimum Service Levels and the introduction of new individual rights, for example on bereavement leave, will be beneficial. But the bill still ties itself up in knots trying to avoid what was promised. Failure to end ‘fire and rehire’ and zero-hours contracts once and for all will leave more holes than Swiss cheese that hostile employers will use.
“The bill also fails to give workers the sort of meaningful rights to access a union for pay bargaining that would put more money in their pockets and, in turn, would aid growth.
“Unite will continue to make workers’ voices heard as we push for improvements to the legislation as the bill goes through parliament.”
Regarding zero-hours contracts, the bill states that workers will now have the right to a guaranteed-hours contract if they work regular hours over a defined period, while allowing people to remain on zero-hours contracts where they prefer.
Michael Kill, CEO of the Night Time Industries Association, welcomed the introduction of day-one rights for unfair dismissal, enhanced protections for parental leave and sick pay, and the statutory probation period for new hires, but emphasised that flexible-working measures must be “balanced with the operational realities faced by businesses, especially those that operate during night hours and have specific staffing needs”.
He continued: “As one of the largest employers of under-30s, the removal of age bands in the minimum wage will have a profound effect on our sector. While we fully support fair pay and would like to offer higher wages to our younger staff, these changes must be made in a way that businesses can afford. If wage increases outpace a business’ ability to manage rising costs, it could be counterproductive, leading to reduced job creation and even closures.
“The government’s plan to base minimum wage decisions on the cost of living is understandable, but it must be coupled with support for businesses to ensure these changes don’t stifle growth or lead to job losses.”
Kill also expressed concerns about how measures against zero-hours contracts would affect the on-trade: “Many businesses in the night-time economy and events sectors rely on the flexibility these contracts offer, particularly around seasonal work and any drastic changes could impact our ability to remain competitive.
“However, the government has promised a consultative period to address some of these more contentious areas, giving us the opportunity to actively shape the outcomes.”
Last month, the government introduced new tips legislation, though Northern Ireland was excluded from the new measures.
Paul Kelly, head of the employment team at Blacks Solicitors, explained that reforms are unlikely to take effect for another 18 months and will likely change following consultations.
He added: “Whatever the final form of the legislation looks like, the bill will be the most seismic reform of UK employment law in decades and many commentators are concerned that the proposals being made by the government will not strike a balance between protecting employees from exploitation and the needs for businesses to grow effectively.
“One of the main concerns is the increased red tape that many small businesses will have to manage, which might have the unintended consequence of putting employers off hiring new staff and possibly dismissing those with less than two years’ service before the legislation comes into force.
“One aspect of the proposed reforms that has not yet been addressed is how the government will reform the Employment Tribunal service considering the anticipated increase in claims that will flow from these increased rights. Already suffering from severe backlogs and a lack of judges, whether the system can cope remains to be seen.”
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