Labour Government reforms – what can employers expect this week?
The UK's new Labour Government is expected to announce major reforms to workers' rights on Thursday this week. The firm's employment team looks ahead to the anticipated changes and what they mean for employers.
Employment Rights Bill
Stephenson Harwood wrote about the anticipated changes as set out in Labour's manifesto in July. It is anticipated that Thursday's 'Employment Rights Bill' will likely focus on the following:
- Day 1 protection against unfair dismissal – Employees will have the right not to be unfairly dismissed from day one of their employment, and no longer require two years of service to bring a claim. The precise details of how this will interact with probation periods is subject to much speculation, but many expect probation periods to be capped at six months.
- Statutory sick pay – All workers may be entitled to sick pay from the first day of absence. Currently, those who earn less than £123 a week are unable to claim at all. It is anticipated that this reform will benefit millions of workers.
- Strengthened rights for new parents – Women will be eligible for maternity pay from day one of their employment, rather than requiring six months service. There will also be further statutory protections from dismissal for mothers returning to work after maternity leave, and more fathers will acquire rights to paternity pay.
The unknowns and the known unknowns
The new Labour Government had promised a "once in a generation" reset of worker rights, and that it would legislate for this through an Employment Rights Bill within its first 100 days in power.
Once announced on Thursday, there should be a better understanding of the scale and detail of these ambitions, where the priorities are and what promises have been watered down. In light of this, clients will need to review their HR and employment policies and procedures to ensure their continued compliance with the law.
The team anticipates that some of the commitments to significantly overhaul the UK employment law landscape will not be the focus of this week's Employment Rights Bill and will follow later. The proposals to ban 'exploitative' zero hours contracts, or create a "single worker status" to expand the number of workers eligible to statutory protections, will likely take longer to legislate for and implement.
If you would like advice in relation to any of the above, would like to discuss your current employment practices, policies or procedures, or would like to discuss how your business may best navigate this period of major change for worker rights please contact Paul Reeves (paul.reeves@shlegal.com), Natalie Edwards (natalie.edwards@shlegal.com), Dermot Neligan (dermot.neligan@shlegal.com), or your usual contact in our employment team.
