The government today unveiled what it calls ‘the biggest upgrade to employment rights for a generation’, bringing forward 28 separate reforms. The Employment Rights Bill will introduce day-one protection from unfair dismissal, removing the current two-year threshold, and day one rights for paternity, parental and bereavement leave. However, most of the changes will not be implemented for at least two years.

‘Exploitative’ zero hours contracts and fire and rehire practices will be banned. Statutory sick pay will be strengthened, removing the lower earnings limit for all and abolishing the three-day waiting period.

Flexible working will be the ‘default for all, unless the employer can prove it is unreasonable’.

Other mooted reforms have been put out to consultation however, which has found favour with employers. These include a new statutory probation period for companies’ new hires, which ‘will allow for a proper assessment of an employee’s suitability to a role as well as reassuring employees that they have rights from day one’. Following intense lobbying from business, the government now aims to make that nine months, having previously suggested that it would recommend six.

A new enforcement body, the Fair Work Agency, will be created with the power to levy fines on employers that breach the new rights.

Trade unions appear divided on whether the bill goes far enough. Quoted in the government’s press release, Paul Nowak, TUC general secretary, said:  ‘After 14 years of stagnating living standards, working people desperately need secure jobs they can build a decent life on.  Whether it’s tackling the scourge of zero-hours contracts and fire and rehire, improving access to sick pay and parental leave, or clamping down on exploitation – this bill highlights the government’s commitment to upgrade rights and protections for millions.’  

However, Sharon Graham, general secretary of Britain’ biggest union Unite, said: ‘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.’

There are also fears an expansion of rights will pile further pressure on an overloaded justice system. Employment tribunal claims are increasing while disposals are slowing, latest statistics show. The number of unresolved cases rose 18% in the quarter to 30 June compared with the same period last year, with the total reaching nearly 44,000.

The Federation of Small Businesses, meanwhile, has warned that day-one rights 'will inevitably deter small employers from taking on new people, for fear of facing an employment tribunal'.

Anna Dabek, partner in the employment and pensions team at law firm Anthony Collins, said: 'Not surprisingly, day one rights to unfair dismissal have been confirmed. While this may be good news for employees, this is not going to be good news for an already creaking tribunal system. We would hope that the promised statutory probationary period would go some way to alleviating further pressure on the system.'

Most of the reforms will not take effect any earlier than 2026, the government confirmed.

 

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