The government introduced what it called the ‘biggest upgrade to rights at work for a generation’ in its new Employment Rights Bill. While some details are still under consideration, the bill would mean that millions of workers would be able to claim statutory sick pay (SSP) from the first day they are ill and claim unpaid parental leave from their first day off helping 1.5 million parents stay in work. But the bill is already facing attack for taking too long to be put into effect (most of the changes won’t be implemented for two years) and for being ‘watered down’. Business groups have expressed concern about how the changes will work in practice.
The Bill also scraps the earning limit for SSP. At the moment those earning less than £123 per week aren’t eligible for SSP. This will change under the bill, though those on lower incomes will receive a lesser rate of SSP. Fathers would be able to claim parental leave from their first day of employment, potentially benefitting 30,000 working dads, instead of 26 weeks and unpaid bereavement leave would also be a ‘day one’ entitlement. Employers will also be compelled to consider any reasonable flexible working request from day one and most show just cause for rejecting the request. Also, the two-year qualifying period for protection from unfair dismissal will be removed, benefiting approximately 9 million employees. Instead, there will be a nine-month probation period when they can still be sacked without full process, which has yet to be defined. There is also going to be a consultation on a statuary probation period for new hires, with the current recommendation being nine months, though Business Secretary Jonathan Reynolds has talked about a six-month maximum.
The bill has received a mixed review from the business community. While big business groups seemed to welcome the measures, with the CBI complimenting the government on balancing the concerns of employers and unions, small businesses were not as convinced. Tina McKenzie, policy chair at the Federation of Small Businesses, called the new bill a ‘rushed job, clumsy, chaotic and poorly planned’. Unions have expressed concerns that short probation periods could make companies wary of taking on new staff or even lose jobs. Some firms have already said they are holding off on employing new workers until the legislation is clear. The bill doesn’t cover all of Labour’s pre-election work pledges. The ‘right to switch off’ is expected to be part of a ‘next steps’ document. General Secretary of the GMB Union, Gary Smith said the bill was a step in the right direction but there was still a long way to go.’
‘The Legislation must be watertight and without loopholes that could be used by those wanting to delay the rights workers so desperately need.’
Another area of controversy is the matter of zero hours contracts. The new bill demands that all employers off a guaranteed hours contract based on the time they work over 12 weeks. It would also ensure zero-hours workers got ‘reasonable’ notice of any shift changes and compensation if a shift was cancelled or ended early. While factory and warehouse workers have traditionally lost out on benefits due to zero hours, UKHospitality says that it is the ‘preferred’ way of working in that sector and the new regulations could have a detrimental effect to how the industry operates. Conservative shadow secretary Kevin Hollinrake said the bill would be closely scrutinized to ensure that businesses got ‘certainty’, ‘not the threat of being sent back to the 1970s.’
