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Government set to unveil most significant reforms to employment rights for a generation to boost pay and productivity

Business / Thu 10th Oct 2024 at 07:30am

TODAY (10 October), the government has published a once in a generation set of employment rights reforms.

The Employment Rights Bill will get the labour market moving again, delivering greater flexibility for workers and businesses alike. The Bill contains 28 individual employment reforms, from ending exploitative zero hours contracts and fire and rehire practices to establishing day one rights to protection against unfair dismissal and to paternity, parental and bereavement leave.

Statutory sick pay will be strengthened and flexible working will be made the default, whilst large employers will be required to create action plans on addressing gender pay gaps and supporting employees through the menopause, and protections against dismissal will be strengthened for pregnant women and new mothers.

The Bill follows a series of roundtables with businesses, trade unions and other stakeholders. Responding to the government’s initiative, these businesses and employee groups have said:

Shirine Khoury-Haq, CEO of the Co-op, said:

“We support the Government’s ambitions to strengthen rights for workers and value the co-operative approach to involve employers in the reforms. As the UK’s largest consumer co-operative, Co-op has long supported colleagues to have good working lives, with policies like our leading bereavement leave, day one right to request flexible working arrangements, and menopause support already in place. The positive impact of these policies is clear to see.

“Being able to support colleagues when they need it, and in particular women, parents and carers, helps retain valuable talent and makes good business sense. We look forward to continuing to work with Government to make work pay and to deliver economic growth.”

Paul Nowak, TUC General Secretary, said:  

“After 14 years of stagnating living standards, working people desperately need secure jobs they can build a decent life on.   

“Whether it’s tackling the scourge of zero-hours contracts and fire and rehire, improving access to sick pay and parental leave, or clamping down on exploitation – this Bill highlights the Government’s commitment to upgrade rights and protections for millions.   

“Driving up employment standards is good for workers, good for business and good for growth. While there is still detail to be worked through, it is time to write a positive new chapter for working people in this country.”   

Jane van Zyl, CEO at Working Families, said:

“As campaigners for better rights for working parents and carers, we’re pleased there is hope on the horizon for the millions who stand to benefit from the transformational changes in the proposed Employment Bill. 

Establishing workplace rights from day one and making flexible working the default could be the key to unlocking labour market mobility, with the promise of getting the economy moving and ensuring parents and carers are not held back in their careers. In addition, we welcome any strengthening of legislation that helps protect pregnant women and new mothers against losing their jobs unfairly at a vulnerable time in their lives. 

The proposals in the Plan to Make Work Pay have the potential to remove barriers in the workplace, give a better start for new parents and reduce gendered roles in caring. The message it sends that worker’s rights matter, and the willingness to address inequalities, is very promising.” 

Simon Roberts, Chief Executive of Sainsbury’s, said:

“As one of the UK’s largest employers we put our colleagues at the heart of everything we do. We see the clear link between engaged, motivated colleagues and business performance and that is why we have increased colleague pay by over 50% in the last 5 years.

We share the Government’s vision of making work pay, enabling growth and driving productivity. We welcome today’s announcement and Government engagement with business to date and look forward to seeing progress on business rates reform, which would deliver real benefits for our colleagues, customers and communities.”

Peter Cheese, Chief Executive of CIPD, the professional body for HR and Learning & Development professionals, said:

“We share the Government’s ambition to raise employment standards and job quality through the Employment Rights Bill as part of the wider Make Work Pay agenda.

“The changes being proposed represent the greatest update in employment legislation in decades. We’re pleased to see the ongoing commitment from Government to engage with the business community to work through the important details to ensure they have a positive impact for both employers and workers.”

Jemima Olchawski, CEO of Fawcett Society, said:

“Today’s draft employment bill is a win for women. Fawcett and our members have campaigned long and hard to see government chart a new course for inclusive economic growth and to improve women’s working lives. We share this government’s ambition to ensure all women can thrive at work and fully contribute to the economy.”

Mark Reynolds, Mace Group Chair and Chief Executive, said:

“Ensuring British workers are supported with strong employment rights benefits everyone – employers as well as employees. This package of reforms is a welcome insight into the Government’s plans and show that they have engaged extensively with businesses and taken a pragmatic approach. We’re pleased to support it; both on behalf of Mace and the wider construction industry. We look forward to working closely with the Government as they take these plans forward.”

Brian McNamara, CEO of Haleon, said:

“It is crucial that the Government continues to engage with the business community on such an important piece of legislation and we welcome the dialogue to date. Haleon is committed to creating an inclusive culture that provides all employees with equal opportunities. This is central to our company strategy and will be core to our future success.”

Greg Jackson, CEO of Octopus Energy, said:

“In formulating these proposals it’s clear that the government has listened to both workers and employers to create protections against bad practices while enabling good businesses to invest in growth and training. For example, the probation period will allow progressive employers to give a chance to people without typical experience or educational backgrounds, opening up new opportunities for them in great careers.”

Chris O’Shea, CEO of Centrica, said:

“As the largest Unionised workforce in the energy sector, we are pleased to see the Government publish their landmark legislation providing more rights and flexibility to employees.

“At Centrica, we offer a range of policies to support our 21,000 colleagues including flexible working and health and wellbeing support from day one, a leading 10 days paid carers policy, our Pathway to Parenthood which offers comprehensive financial support towards fertility treatment alongside paid leave to for any fertility, adoption or surrogacy appointments, and additional support for neurodivergent colleagues. It’s the right thing to do and we want to help our employees and share best practices with others. Our experience shows that there is a clear business case for doing this with savings from increased retention and ensuring colleagues don’t have to take unplanned absences.”

Helen Dickinson OBE, CEO of the British Retail Consortium, said:

“As the country’s largest private sector employer, employing three million people, the industry stands ready to work with government to ensure these reforms are a win:win for employers and colleagues, and maximise employment opportunities, investment, and growth. Many of the expected provisions, including stopping exploitative contracts and offering flexibility in employment, are things that responsible retailers already do. Introducing these standards for everyone means good employers should be competing on a level playing field. We look forward to engaging the government on the details, including around seasonal hiring and the use of probation periods.”

Kate Nicholls, CEO of UKHospitality, said:

“I’m pleased the Government has recognised the importance of flexibility to both workers and businesses. This is crucial for hospitality, which employs 3.5m people and provides countless flexible roles for working parents, students, carers and many more.

“We look forward to continuing our engagement and consultation with the Government on its plans, which are not without cost, to get the details right for all parties.”

BT Group spokesperson, said:

“BT Group believes that a strong economy is one that works for everyone, and has already adopted many of the measures that will be covered by this legislation.  It will be crucial to get the details right, to avoid unintended consequences and keep the UK competitive, and we welcome the constructive, consultative approach that the Government is taking.”

10 Comments for Government set to unveil most significant reforms to employment rights for a generation to boost pay and productivity:

Guy Flegman
2024-10-10 07:58:12

Fantastic! More red tape and regulation to stifle growth. I am trying to grow a recovering business from the financial disaster of covid lockdowns, much like a lot of the UK businesses. The government really need to find some adults as the 6th formers that they seem to be will ruin this country faster than a fast thing. Here is an idea, insteadof getting rid of probationary periods for employees why not introduce probationary periods for politicians. Now that would help get the country back on its feet!

Guy Flegman
2024-10-10 08:03:46

I should add that my company has already implemented many of the measures that are planned. We just do not need more government interference and red tape and some of the less thought out aspects of this. A business should not be wasting its resources on checking continually what new legislation they should be complying with instead of getting on with the job in hand in the current climate.

gary roberts
2024-10-10 08:19:46

I hope firms will revert to accepting Trade Union representation and deliver job and finish alternatives as part of flexible employment contracts. Will they?

Adam
2024-10-10 09:18:08

Just what businesses need, more help from the government. Ever wonder why salaries in the UK / EU are so poor compared to the USA. Most UK cannot comprehend that engineers can make $500K plus, Waiters $200K in the US, the reason for that is the low regulation, low over head and easy hire and fire approach. It allow innovation, fosters growth and yeah sometimes it sucks when you get laid off but there is another company hiring as it is easy to lay off should bad time happen. Unlike the UK / EU where it is impossible to fire workers and comes with massive over heads. I was going to recruit at the end of the month for a well paying engineering role circa £100K salary I do not think I will bother now.

Gary Roberts
2024-10-10 11:06:18

Apparently firms will close and employers will move out of the UK with these changes to employment law along with millionaires and billionaires who believe we have a communist state. BS comes in so many shades. This government doesn't even reach socialist level of employment law since Thatcher tried and failed to destroy trade unions.

David Forman
2024-10-10 12:05:38

The original New Deal contained 75 new measures to improve workers rights, but this "Bare Bones Framework", as described by the Financial Times, only contains 28. Moreover, lengthy consultations will see the most important items delayed until 2026/7 See FT article from last Saturday at https://www.ft.com/content/52c537c3-b541-4d44-8101-cb1ba22ee59c

David Forman
2024-10-10 12:18:21

Today's article in the Morning Star has quotes from three union leaders airing scepticism about how these reforms will emerge. The CWU general secretary, Dave Ward, said: "After decades of attacks on workers from the Tories, there must be no delay in delivering these changes, nor any capitulation to the demands of big business to water down the legislation.” Already the original New Deal demand of sectoral collective bargaining across all business sectors has been reduced to one in social care, but even this is not likely to appear until 2027. See Morning Star article at: https://morningstaronline.co.uk/article/labour-unveils-long-awaited-new-deal-for-workers

Guy Flegman
2024-10-10 16:43:23

The below is from an article in fortune magazine. “ Henley & Partners’ latest Private Wealth Migration Report 2024 predicts that 9,500 millionaires are expected to leave the U.K. through 2024, more than double last year’s figure. The country is second only to China in millionaires set to leave its shores this year.” To put this in perspective the USA is expected to receive more than 3500 millionaires this year. Please bear in mind that the top 5% pay 90% of the tax in the UK, so this is very bad news for us as the government will need to lower the bar on what makes you wealthy to make up the tax shortfall. BS does indeed come in many shades

gary roberts
2024-10-10 17:09:09

Mr Flegman, do you believe the article you mention? How many left last time on the "threat" of a Labour government?

Guy Flegman
2024-10-11 10:05:00

The people are leaving. Most because of the change in non dom status the figures come from the industry that specialises in relocating people around the world. There is no reason to doubt the numbers. In fact most reports I have read think the numbers are higher. Even the civil service is telling the government that the changes to non dom status has not raised any money. The wealthy rarely feel any allegiance to any particular country and are generally always on the move as this enables them to minimise there taxes. When it comes to billionaires they avoid taxes largely because they think they can do more good with the money than the government. All the government does when imposing their current policies is drag down the middle earners and make the poor poorer. Personally I blame both parties for this as the calibre of our politicians has been falling for years. If they really had the wellbeing of the electorate at heart they would be looking at getting rid of waste in the system as tax as a percentage has gone up from a historical average of 33% of gdp to approximately 50% since 2000 yet the services we gat have declined. It’s not hard to see something is going very wrong and this will not change until people are wake up and realise we can accomplish great things only when we all work together instead of dividing us into ever smaller opposing groups

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