The government has introduced the Employment Rights Bill, which will see 28 employment reforms, including ending zero hours contracts and installing the right to a guaranteed hours contract if employees work regular hours over a defined period, giving earnings security.
It will also end fire-and-rehire practices and remove existing two-year qualifying period for protections from unfair dismissal to give greater protections from day one. A new Fair Work Agency will be established to enforce holiday pay and support employers with guidance on how to comply with the law.
Large employers will be required to create action plans on addressing gender pay gaps and supporting employees through the menopause.
This bill, which has been designed to help deliver economic security and growth to UK businesses, employees and communities, also repeals the anti-union legislation, including the Minimum Service Levels (Strikes) Act legislation.
It will make flexible working the default for all, unless an employer can prove it is unreasonable, establish a new right to bereavement leave, deliver stronger protections for pregnant women and new mothers returning to work including protection from dismissal while pregnant, on maternity leave and within six months of returning to work.
The bill additionally includes accounting for the cost of living when setting the minimum wage and remove discriminatory age bands and strengthening statutory sick pay.
Subject to consultations, the government will introduce a right to switch off, preventing employees from being contacted out of hours, except in exceptional circumstances, and a commitment to end pay discrimination by expanding the Equality (Race and Disparity) Bill to make it mandatory for large employers to report their ethnicity and disability pay gap.
It will additionally review the parental leave and carers leave systems, look to move towards a single status of worker and transition towards a simpler two-part framework for employment status.
Angela Rayner, deputy prime minister, said: “This government is delivering the biggest upgrade to rights at work for a generation, boosting pay and productivity with employment laws fit for a modern economy. We’re turning the page on an economy riven with insecurity, ravaged by dire productivity and blighted by low pay. Our plans to make work pay will deliver security in work as the foundation for boosting productivity and growing our economy to make working people better off and realise our potential.”
Justin Madders, employment rights minister, added: “We know that most employers proudly treat their staff well. The steps we’re taking will finally right the wrongs, working in partnership with business and unions to kickstart economic growth that will benefit them, their workers and local communities.”
