Business Secretary Jonathan Reynolds described the new legislation as "the biggest upgrade in employment rights for a generation"(Image: Lauren Hurley/PA Wire)

List of new UK employment laws including sick pay reform and flexible working for all

The government has unveiled a raft of new employment laws that it says will bring "the biggest upgrade in employment rights for a generation" and provide more security for workers

by · NottinghamshireLive

The UK government has unveiled a raft of new employment laws that are aimed at improving the lives of workers. Business Secretary Jonathan Reynolds has announced the Employment Rights Bill, which aims to elevate the minimum level of employment rights and improve living standards nationwide.

He described the new legislation as "the biggest upgrade in employment rights for a generation". The proposed laws are set to benefit employees with parental or other caring responsibilities, while sick pay is also due for substantial reforms.

The Bill also outlines plans to prohibit exploitative zero-hours contracts and fire and rehire practices. In total, the Bill encompasses 28 separate reforms.

Mr Reynolds revealed that consultations on the reforms will commence next year, with most of the new laws anticipated to come into effect "no earlier than 2026". Trade unions have hailed the measures as a "seismic shift" from the low pay, low productivity economy they claim the previous Conservative government oversaw, reports the Manchester Evening News.

Deputy Prime Minister Angela Rayner stated: "This government is delivering the biggest upgrade to rights at work for a generation, boosting pay and productivity with employment laws fit for a modern economy. We're turning the page on an economy riven with insecurity, ravaged by dire productivity and blighted by low pay."

"The UK's out-of-date employment laws are holding our country back and failing business and workers alike. Our plans to make work pay will deliver security in work as the foundation for boosting productivity and growing our economy to make working people better off and realise our potential."

The government has announced that employees will have "greater protection against unfair dismissal from day one". A new statutory probation period will be introduced for new hires, allowing for a proper assessment of an employee's suitability for a role and giving them reassurance that they have rights from day one.

The government says it will consult on the length of the period, but its preference is for nine months.

The Bill will establish rights to bereavement and paternity and parental leave from day one. Currently, to qualify for paternity leave, an employee must have 26 weeks' continuous employment.

The new law would remove this rule, and leave would become a day one right. The right to take parental leave, which currently requires one year's service, will also become available from the first day of employment.

The Bill will also reform statutory sick pay, removing the lower earnings limit for all workers and eliminating the waiting period before sick pay kicks in.

Sick pay will be made available from the first day of illness, and the removal of the earnings threshold will ensure that workers earning less than £123 per week will qualify for support. At present, sick pay is only accessible from the fourth consecutive day of illness, forcing workers to endure three full days without income before they are eligible for support.

This shift is set to considerably aid lower-paid workers, those with irregular hours, and part-time staff who were previously ineligible.

The newly proposed laws will also see the end of "exploitative" zero-hour contracts. While workers can remain on zero-hour contracts if they choose, the legislation will provide a legal right to a contract with guaranteed hours should they work regular hours over a certain period.

Government research indicates that a significant 84 per cent of zero-hour contract workers would prefer to have guaranteed hours, and nearly two-thirds of managers (64 per cent) believe that terminating zero-hour contracts would positively influence their businesses.

Moreover, the government plans to amend the law to make flexible working a standard for all employees, unless an employer can demonstrate its impracticality. Under these changes, employers will have to accommodate flexible working arrangements as far as reasonable to reflect a modernised workplace environment, the government has explained.

Lastly, the government has expressed a desire to eradicate "unscrupulous" fire and rehire practices.

Some employers utilise practices that allow them to dismiss workers and then rehire them or replace them with new employees on reduced terms and conditions. The government has stated that the new Bill will "shut down the loopholes that allow bullying fire and rehire and fire and replace to continue".

The government has also announced plans to scrap "discriminatory" age bands currently used to calculate minimum wage. This move is aimed at ensuring every adult worker receives a fair rate of pay.

Furthermore, the Bill will remove "unnecessary" restrictions placed on trade unions, including the Conservative government's controversial law aimed at ensuring a minimum level of service during strikes. .

Unions have been strongly opposed to this law, which has not been utilised by any employers involved in the wave of strikes over the past two years. The government has stated that updating the legislation on trade unions will ensure it is "fit for a modern economy", with industrial relations based around "good faith negotiation and bargaining".

Large employers will be required to address gender equality issues, including supporting employees through the menopause. Protections against dismissal will also be strengthened for pregnant workers and those returning from maternity leave.

The government has stated that the new measures will help keep individuals "in jobs for longer, reducing recruitment costs for employers by increasing staff retention and helping the economy grow". Additionally, the government has confirmed plans to grant workers the right to 'switch off' at the end of the working day, which would prevent employers from contacting staff outside of work hours.

In a supplementary document released with the Employment Rights Bill, ministers have declared that the world of work requires an "urgent upgrade" to stay in step with a modern economy and to aid in driving growth and living standards.