Labour Introduces Employment Rights Bill

In what it terms a generational upgrade to worker rights in the UK, the Government has unveiled its Employment Rights Bill.

The bill, introduced on October 10th, was delivered as promised within the first 100 days of the government's coming into office. It was described as the government's plan to help deliver economic security and growth to businesses, workers, and communities across the UK.

The bill focuses on upgrading worker rights and addressing poor working conditions and practices to benefit workers and businesses alike. It is intended to boost pay and productivity and demonstrate the benefits of a pro-business, pro-worker approach.

Temporary Workers to Benefit From the Employment Rights Bill, too.

The Labour Party has long argued that flexibility in employment rights has favoured employers over employees. Therefore, it seeks to redress the balance through its Employment Rights Bill.

The Employment Rights Bill will benefit the UK’s permanent workforce and temporary workers, especially those employed through umbrella companies. The bill will provide more favourable terms and conditions for temporary workers to protect them while working.

●??????? Day-one rights—The proposed changes will be very welcome for many workers, especially those on the lower pay scale.

The main changes affecting contractors will be the removal of qualifying periods for statutory sick pay and statutory maternity pay, which are statutory benefits that apply to contractors employed via an umbrella company.

Removing the qualifying periods means that workers who are sick will be able to claim sick pay from the first day of their sickness rather than going unpaid for three qualifying days, as is currently the case.

Workers looking to claim statutory maternity pay will no longer have to be employed by the company for six months before qualifying for SMP.

●??????? Fair Work Agency—Proposed as an enforcement body that brings together existing enforcement bodies, the Fair Work Agency will be responsible for enforcing employment rights. One is holiday pay, an issue that has bugged the umbrella sector for some time. While it is still unclear what the body’s full remit is to be, there is speculation that it could also become responsible for regulating the umbrella industry, raising industry standards, and stamping out illegal and immoral practices.

The Employment Rights Bill to Bring Change Over Time

While the Employment Rights Bill aims to help drive economic growth and support more people into secure work, the changes will take time.

In many cases, there will need to be consultations, which will take months or years before the government can make final decisions and implement changes.

As always, Champion will monitor the bill's progress, and we’ll update you as we hear more.

Stay tuned for updates by visiting our website at https://www.champion-contractors.co.uk/ or following us on LinkedIn.

Alternatively, you can contact the Champion Contractors team on 0161 703 2549 or email [email protected].

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