The government has, today, unveiled a new bill that will support workers, deliver economic security, and improve opportunities for growth around the country.
With the introduction of the Employment Rights Bill, the government is using improvements to the labour market to drive economic growth. This comes as one in five UK businesses with more than ten employees reporting staff shortages.
The first way that the bill will look to protect employees is through the removal of the two-year qualifying period for unfair dismissal protections, whilst also consulting on a mandatory probation period for new hires. These are just two examples of 28 new reforms that will be introduced relating to individual employment, with these reforms ranging from ending zero-hour contracts, to cutting the period of waiting before sick pay can kick in.
Alongside these reforms, the government will also introduce a new Fair Work Agency, that will enforce workers’ rights such as holiday pay whilst also providing employers with more guidance on how they can ensure they are complying with the law.
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.
“The UK’s out-of-date employment laws are holding our country back and failing business and workers alike. 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.
“Too many people are drawn into a race to the bottom, denied the security they need to raise a family while businesses are unable to retain the workers they need to grow. We’re raising the floor on rights at work to deliver a stronger, fairer and brighter future of work for Britain.”
Some of the measures to be introduced include:
- Making flexible working the default for all workers, unless employers can prove that it is unreasonable
- Establishing a new right to bereavement leave
- Stronger protections for pregnant women and new mothers that return to work
- Accounting for the cost of living whilst setting the Minimum Wage and removing age bands
- Committing to ending pay discrimination by expanding the Equality (Race and Diversity) Bill
Business Secretary Jonathan Reynolds added:
“It is our mission to get the economy moving and create the long term, sustainable growth that people and businesses across the country need. Our plan will give the world of work a much-needed upgrade, boosting pay and productivity.
“The best employers know that employees are more productive when they are happy at work. That is why it’s vital to give employers the flexibility they need to grow whilst ending unscrupulous and unfair practices.
“This upgrade to our laws will ensure they are fit for modern life, raise living standards and provide opportunity and security for businesses, workers and communities across the country.”
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