The King's Speech on Wednesday, July 17 2024, announced two bills on Employment law: an Employment Rights Bill and a draft Equality (Race and Disability) Bill.
Employment Rights Bill
King Charles III confirmed that the new labour government will ban "exploitative practices and enhance employment rights" through a new Employment Rights Bill to implement Labour's New Deal for Working people which includes:
- making parental leave, sick pay and protection from unfair dismissal available from day one for all workers (although employers can still operate probationary periods to assess new hires);
- banning exploitative zero-hour contracts, meaning workers will have a right to a contract that reflects the number of hours they regularly work. Workers will also be entitled to reasonable notice of any changes in shifts, with proportionate compensation for any shifts cancelled or curtailed;
- ending 'fire and re-hire' and 'fire and replace';
- making flexible working the default from day one with employers expected to accommodate this as far as is reasonable;
- establishing a new Single Enforcement Body, called the Fair Work Agency;
- new rights for unions to access workplaces and other union-friendly reforms;
- strengthening of statutory sick pay (SSP), removing the lower earnings limit to make it available to all workers, as well as removing the three-day waiting period;
- strengthening protections for new mothers by making it unlawful to dismiss a woman who has had a baby for six months after her return to work, except in specific circumstances;
- establishing a Fair Pay Agreement in the adult social care sector and, following review, assess how and to what extent such agreements could benefit other sectors; and
- reinstating the School Support Staff Negotiating Body, to establish national terms and conditions, career progression routes, and fair pay rates.
Draft Equality (Race and Disability) Bill
It was also announced that Labour has proposed a draft bill to:
- extend the equal pay regime so that it covers race and disability as well as sex; and
- introduce mandatory ethnicity and disability pay reporting for employers with at least 250 people.
What do employers need to do?
It remains to be seen whether Labour will immediately introduce the Employment Rights Bill or seek consultation on a draft. However, the pledge to "introduce" this bill within the first 100 days implies that the final text will be presented to Parliament by October 12, 2024.
Before becoming law, the bill must pass through both houses of Parliament and may be amended during this process, which may take several months. Even after the bill is enacted, many provisions won't take effect immediately as they may require substantial secondary legislation, codes of practice, or both to be implemented.
Nonetheless, employers and HR professionals must note that contracts, policies and handbooks will all need to be rewritten to reflect the changes that are coming, particularly to take into account the changes to day one rights.
Higgs LLP Annual Employment Law Update Seminar 2024
A panel of our experienced employment lawyers will discuss the above changes at our forthcoming Annual Employment Seminar on Wednesday, September 18. Please register here.
