Kings Speech – Employment Law Implications

By Nicola Smyrl

Partner

18 July 2024

Article Insights

During the state opening of parliament yesterday, the King’s Speech confirmed the new Labour Government’s plans to overhaul employment rights in the UK.  The Government will legislate to introduce a new deal for working people to “ban exploitative practices and enhance employment rights” through a new employment rights bill.

The Briefing notes to the King’s Speech provide more detail on what can be expected in employment law in the coming months, which is described by Labour as the “biggest upgrade to workers rights in a generation”. 

Key highlights include:

• A new employment bill within the first 100 days.

• The Government has promised to work in partnership with businesses, trade unions  and working people to deliver the changes, which they have described as vital to their growth strategy.

• Banning “exploitative” zero-hour contracts to bring an end to “one-sided flexibility” and ensure all jobs provide a minimum standard of job security and predictability. Workers will have the right to a contract that reflects the number of hours they regularly work and requires that reasonable notice of any changes in shifts are provided, with proportionate compensation for any cancellations or reduction of hours worked.

• Ending “Fire & Rehire.”  Current legislation will be amended to provide effective remedies for workers who are subject to this practice, with current rules in this area being described as inadequate.

• Extension of Day 1 Rights to cover parental leave and unfair dismissal protection.  The right to claim unfair dismissal will be subject to the right of the employer to operate a probationary period to assess new hires.

• Strengthening Statutory Sick Pay. The lower earnings limit will be removed so SSP is available to all workers, with the waiting period also removed so SSP is payable from the first day of absence.

• Flexible working will become the default from Day 1 for all workers. Employers will be required to accommodate this where reasonable to do so.

• Strengthening Protections for New Mothers.  It will be unlawful to dismiss a woman who is pregnant for 6 months after her return to work, except in specific circumstances (details of which are yet to be published).

• A Single Enforcement Body. A new body will be established, to be known as a “Fair Work Agency”, to strengthen the enforcement of workplace rights.

• Fair Pay Agreements for the Social Care Sector.  This may involve the introduction of collective bargaining which would give workers the right to negotiate fair pay agreements through sectoral collective bargaining. Should this be a success, there will be a view to how such policies could be implemented in other sectors.

• The School Support Staff Negotiating Body will be reinstated to establish national terms and conditions, career progression routes and fair pay rates.

• Updating Trade Union Legislation. “Unnecessary” restrictions on trade union activity will be removed, to ensure relations between employers and trade unions are based on good faith negotiation and bargaining. The process of statutory recognition will also be simplified, to ensure workers and union members have a reasonable right to access a union within a workplace.

• In addition, the Equality (Race and Disability) Bill will ensure the full right to equal pay for ethnic minorities and disabled people, which the briefing notes claim will make it easier for them to bring pay discrimination claims. It will also introduce mandatory ethnicity and disability pay reporting for employers with 250+ employees to help close the ethnicity and disability pay gaps.

The Conservatives and some business organisations have already expressed concerns that the new laws will lead to business closures and job losses.  Whilst this remains to be seen, it is already clear that the changes to employment law will have significant implications for employers.  Businesses of all sizes will need to consider what changes will be required to their HR practices to prepare for and comply with the new requirements.

To assist businesses in navigating the wide-ranging changes to employment law, we will be hosting a seminar to discuss the changes:

Date: 24 September 2024

Time: 9am-12pm

Location: St Michael’s Manor, Fishpool Street, St Albans

If you would like to reserve a place please send an email to events@taylorwalton.co.uk or alternatively book a place using the following link: https://www.linkedin.com/events/whatwillanewlabourgovernmentmea7217118490745270272/about/

Disclaimer: General Information Provided Only
Please note that the contents of this article are intended solely for general information purposes and should not be considered as legal advice. We cannot be held responsible for any loss resulting from actions or inactions taken based on this article.