The King’s Speech announces three new employment-related Bills

The King’s Speech announced a trio of employment-related bills that could revolutionise the way businesses operate across Great Britain. Designed to enhance employee rights, promote equality, and boost skills development, these reforms are set to bring significant changes. Here’s a closer look at what these new Bills entail. 

 Employment Rights Bill 

The Employment Rights Bill has surprised many with its broad scope of reforms designed to protect and enhance workers’ rights.

Key provisions include: 

• Day one rights for unfair dismissal: employees will have the right to unfair dismissal protection from their first day of employment. Employers will still be able to use probationary periods, but these will need to be managed through fair and transparent processes.  

• Zero-hours contracts: “exploitative” zero-hours contracts will be banned, and workers will have the right to a contract reflecting the hours they regularly work. 

• Reasonable notice and compensation for shift changes: workers will be entitled to reasonable notice for shift changes and will be given a right to compensation for shifts cancelled or shortened at short notice. 

• Ban on fire and rehire practices: the existing statutory Code on Dismissal and Re-engagement will be strengthened by permitting this practice only where there is genuinely no alternative and increasing the penalties which can be imposed for a breach.. 

• Parental leave: parental leave will become a right from day one of employment. 

• Sick pay reforms: the three-day waiting period for Statutory Sick Pay (SSP) will be abolished, along with the lower earnings limit requirement. 

• Default flexible working: flexible working will become the default from day one, with employers required to accommodate requests “except where it is not reasonably feasible”.  

• Maternity protection: it will become unlawful to dismiss a woman during the six months after her return from maternity leave, except under specific circumstances. 

• Fair Work Agency: a single labour market enforcement body will be established. 

• Fair Pay Agreement: this will be introduced in the adult social care sector. 

• Trade union legislation: recent restrictive legislation on trade union activities will be repealed, the process for achieving statutory recognition will be simplified and there will be new rights to access for unions and new obligations to inform employees of their right to join a union. 

The new rules will apply to Great Britain, excluding Northern Ireland, with publication of the Bill promised within Labour’s first 100 days in government. Once published, the Bill will follow the usual parliamentary process to become law.  

For clients of our HR service, we’ll be covering details on how these rules will operate in practice when the Bill is published. 

Equality (Race and Disability) Bill 

The Speech also announced a new Equality (Race and Disability) Bill.

Key measures include: 

• Equal Pay Rights: Enshrining the right to equal pay in law, making it easier for ethnic minorities and disabled individuals to bring equal pay claims. 
• Mandatory Pay Gap Reporting: Employers with 250+ employees will be required to report on ethnicity and disability pay gaps. 

Again, this Bill is likely to apply to Great Britain rather than the whole of the UK (therefore excluding N Ireland). 

 

Skills England Bill 

The government announced reforms to the apprenticeship levy and the establishment of Skills England. This new body will take over functions from the Institute for Apprenticeships and Technical Education (IfATE), aiming to streamline and enhance skills training across England. 

 

National Minimum Wage 

In addition to these bills, the Speech also confirmed that the government will be asking the Low Pay Commission to take into account the cost of living when setting NMW levels and will remove the current age bands “to ensure every adult worker benefits”.