The start of this month, saw the election of a new Labour Government. In the lead up to the election, we wrote about the plans set out in their manifesto and what we could expect to see if they were to be elected. The next stage in the parliamentary process is for the Government to announce its priorities for the coming year, which they do so, via the King’s speech.
King’s Speech 2024
On 17 July, King Charles III delivered the Government’s commitment for the year 2024/25, within which, it was announced that two new employment Bills would be introduced that will progress many of the key proposals for change that had been outlined in their manifesto.
Employment Bill 2024: Key Provisions
The first Bill, is the Employment Bill, and it will introduce primary legislation that addresses the following:
Employment contracts and working arrangements
- Ban exploitative zero-hour contracts by giving employees a right to have a contract reflecting the hours they regularly work based on a 12-week reference period
- Introduce a right to give workers reasonable notice of work schedules and wages for shifts cancelled at short notice
- Make flexible working the default from the start of employment, unless there are good reasons to refuse.
Family leave entitlements
- Make parental leave a day one right for all workers
- Entitlement to bereavement leave for all workers
- Strengthen protections for new mothers by making it unlawful to dismiss a woman who has had a baby, for the period of six months after their return to work (with certain exceptions).
Industrial relations
- Make changes to the Trade Union Act 2016 and abolish certain rules on industrial action.
- All new starters to be informed of their right to join a Trade Union
- Reinstating the School Support Staff Negotiating Body, to establish national terms and conditions, career progression routes and fair pay rates
- Making the process of statutory recognition for trade unions simpler
- Creating a new right for workers (and union members) to access a union within workplaces.
Pay and benefits
- Remove the lower earnings threshold for qualifying for Statutory Sick Pay and to remove the waiting days, making it available from day 1 for all workers
- Remove the National Minimum Wage age bandings so all adults are entitled to the same minimum wage
- Change the criteria for determining the National Minimum Wage to ensure the cost of living is a factor when setting the minimum pay level
- Create a ‘Fair Pay Agreement’ to allow for sectoral collective bargaining in the adult social care sector.
Dismissals
- Unfair dismissal to become a day 1 employment right for all workers (subject to rules around probation periods)
- Restrictions placed on the practice of fire and rehire (dismissal and reengagement).
Enforcement
- Create a single enforcement body to enforce employment rights, called the ‘Fair Work Agency’.
Equality (Race and Disability) Bill 2024: Key Provisions
The second Bill, is the new Equality (Race and Disability) Bill, and this will introduce legislation that will:
- Place a new duty on large employers to produce ethnicity and disability pay gap reports
- Enshrine in law the full right to equal pay for ethnic minorities and people with disabilities by making it easier to bring unequal pay claims.
Labour Government’s Commitment and Implementation Timeline
While Labour has committed to introducing legislation within their first 100 days, it is unlikely to come into force immediately as it will take time to introduce these changes. Once legislation is passed, there are further stages that include the passing of further legislation, carrying out public consultations, introducing regulations, and in some areas, the development of Government guidance and/or Codes of Practice.
We are taking steps now to prepare for these changes, to ensure the employment documentation and our associated articles are ready for when these changes come into force
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