New UK employment laws announced including sick pay reform and flexible working for all

The UK Government has introduced plans for new employment laws aimed at enhancing workers’ rights significantly. Business secretary Jonathan Reynolds stated that the proposed Employment Rights Bill seeks to set a higher minimum standard for employment rights, ultimately leading to improved living standards nationwide. This legislation is hailed as the most significant upgrade in employment rights for a generation.

The new laws target employees with parental or caring responsibilities, with substantial reforms planned for sick pay. The bill also aims to outlaw exploitative practices like zero-hours contracts and fire-and-rehire tactics, encompassing a total of 28 separate reforms. Consultations on these reforms are set to begin next year, with most new laws expected to come into effect by 2026 at the earliest, according to reports from the Manchester Evening News.

Trade unions have shown support for the measures, calling them a “seismic shift” away from the low-pay, low-productivity economy attributed to the previous Conservative government. Deputy Prime Minister Angela Rayner emphasised the government’s commitment to improving pay and productivity through modern employment laws.

Employees will benefit from greater protection against unfair dismissal from day one under the new reforms. A statutory probationary period for new recruits is proposed, granting immediate occupational rights while evaluating their suitability, with a suggested duration of nine months. The bill also grants bereavement and parental leave rights from the first day of employment, eliminating previous service requirements.

Reforms to statutory sick pay aim to improve workers’ welfare by removing the lower earnings threshold and the waiting period to access sick pay. Sick pay will now be available from the first day of illness, benefiting lower-paid workers and part-timers. The legislation also puts an end to zero-hour contracts, allowing workers to request guaranteed-hours contracts if they work regular hours over a certain period.

Flexible working will become the default position for all workers unless employers can justify otherwise, with a focus on accommodating modern workplace needs. Additionally, the government plans to ban “unscrupulous” fire-and-rehire practices to protect workers’ rights. Age bands determining minimum wage will be scrapped to ensure fair pay for all adult workers.

The bill will remove constraints on trade unions and strengthen protections for pregnant workers, those returning from maternity leave, and individuals going through menopause. Large employers will be required to address gender equality issues, providing support for employees. The government also pledges to introduce a ‘right to switch off’, limiting out-of-hours communications from employers to support work-life balance.