Government Plans to Enhance Employment Rights and Ban Exploitative Practices: A Summary for Business Owners
King Charles in Parliament Credit: Gov.uk

Government Plans to Enhance Employment Rights and Ban Exploitative Practices: A Summary for Business Owners

Yesterday's King’s Speech set the stage for significant changes in employment legislation, aimed at banning exploitative practices and enhancing employment rights. As a business owner with employees, it's vital to stay informed and prepared for these upcoming changes, even as we wait for them to become law.

The King’s Speech, delivered as part of the forming of the King's Labour Government, outlined their legislative agenda for the initial months in power. It briefly mentioned the intention to introduce "legislation to ban exploitative practices and enhance employment rights." Detailed in the Prime Minister’s briefing notes, the Employment Rights Bill seems poised to bring Labour’s ‘New Deal for Working People’ into full effect.

Key Proposals in the Employment Rights Bill:

  1. Parental Leave, Sick Pay, and Unfair Dismissal Protections: These rights will be available from day one, subject to specific rules for probationary periods.
  2. Ban on Zero-Hour Contracts: Workers will be entitled to contracts reflecting their regular working hours.
  3. Ending ‘Fire and Rehire’ Practices: The law will be reformed to abolish 'fire and rehire' and 'fire and replace,' supported by a new statutory code.
  4. Revised Statutory Sick Pay: The lower earnings limit and waiting period for Statutory Sick Pay will be removed.
  5. Default Flexible Working: Flexible working will become the default from day one, with employers required to accommodate this where reasonable.
  6. Protection for New Mothers: It will be unlawful to dismiss a woman for six months after her return from maternity leave, with certain exceptions.
  7. Establishment of the Fair Work Agency: This agency will be responsible for enforcing workplace rights.
  8. Fair Pay Agreement in Adult Social Care: Aimed at ensuring fair compensation within the sector.
  9. Repeal of Minimum Service Levels Law: This relates to industrial action regulations.
  10. Simplified Trade Union Recognition Process: Making it easier for unions to gain statutory recognition.
  11. Union Access Rights: Workers and union members will have the right to access unions within workplaces.


Additional Proposals in the Draft Equality (Race and Disability) Bill:

  • Equal Pay Law for Disabled People and Ethnic Minorities: Enshrinement of Full Equal Pay Rights.
  • Mandatory Pay Gap Reporting: Required reporting on ethnicity and disability pay gaps.


A Word of Caution

While the briefing notes are comprehensive, they mention that the Bill aims to deliver on policies from the ‘Plan to Make Work Pay,’ implying not all details may be included in the final Bill. We must wait for the actual legislation to understand the full scope.

What's Next?

Change is certainly on the horizon. As business owners, it’s important to stay updated and begin considering how these proposed changes might impact your operations and employee relations. Stay tuned for the draft legislation to ensure your business complies with the new regulations once they are enacted. If you are concerned about any of the above then don't hesitate to get in touch with our team:?https://wa.me/441925552333?text=Subscribe

Martin Byrne, Business Protection Specialist

Business Protection Specialist. I help Business Owners & Shareholders make sure their families get fair value for their shareholding quickly & tax-efficiently

4 个月

Advice is paramount. This ??won’t work.

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