A new era of Government dawned last month with the King’s Speech officially opening Parliament following Labour’s victory in the General Election. Outlining a transformative agenda for employment law in the UK, the King’s Speech set the legislative tone for the coming parliamentary session, with the proposed reforms signalling a significant shift towards strengthening workers' rights, addressing long-standing issues within the workplace, and enhancing the overall quality of employment in the UK.
The 2024 King’s Speech unveiled two key Employment Bills aimed at updating UK employment law. Here are some of the key proposals that are likely to reshape the landscape of work in the coming months and years.
The Employment Rights Bill is set to be introduced before Parliament by mid-October, but is likely to take longer to pass into law. Its key proposals include:
Banning zero-hour contracts and ensuring workers have a right to a contract that reflects the number of hours they regularly work
Ending "fire and rehire" by reforming the law to provide effective remedies and replacing the Statutory Code of Conduct
Making parental leave, sick pay and protection from unfair dismissal available from day one for all workers. Employers will still be able to operate probationary periods
Changing statutory sick pay by removing the lower earnings limit and the waiting period
Making flexible working the default from day one for all workers. Employers will have to accommodate this "as far as is reasonable" to reflect the modern workplace
Strengthening protections for new mothers by making it unlawful to dismiss a woman who has had a baby for six months after she returns to work (with some exceptions)
Establishing a new Single Enforcement Body to strengthen the enforcement of workplace rights
Updating trade union legislation to remove "unnecessary" restrictions on trade union activity, which will include repealing the law on minimum service levels during industrial action
Simplifying statutory recognition of trade unions and ensuring that workers and union members have a reasonable right to access a union within the workplace.
The second new Bill mentioned in the King’s Speech is the draft Equality (Race and Disability) Bill. This will give ethnic minorities and disabled people "the full right to equal pay", which should make it easier for them to bring equal pay claims. The Bill will also introduce mandatory ethnicity and disability pay reporting for employers with 250 or more employees. Employers may find this more difficult to comply with than the existing gender pay gap reporting regime as race is not binary and, particularly with regard to disabilities, data collection can be challenging.
The proposed changes in both Bills will have significant implications for employers across the UK. Businesses will need to adapt their policies and practices to comply with the new regulations, particularly in areas such as flexible working, employee rights in the gig economy, and the right to disconnect. As these legislative changes progress, it will be crucial for both employers and employees to stay informed and engaged with the evolving legal landscape. Employers should begin reviewing their employment contracts, HR policies, and practices to ensure they are prepared for the upcoming changes. By doing so, businesses can ensure compliance while fostering a positive and supportive work environment that benefits everyone.
As always, if you need advice or guidance in preparing for these proposed changes, Ambition HR is here to help. As your strategic HR partner, we work with you to align your business and HR objectives, developing bespoke people plans and helping you put these plans into action. If you feel like you’d benefit from an informal chat about your business needs, you can schedule a call online today.
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