The King’s Speech and the employment law landscape

Following last week’s blog post dissecting Labour’s win, we now have more clarity regarding their initial legislative priorities from the King’s speech this morning. Labour appears poised to swiftly implement their ‘New Deal for Working People’.

Further, the speech briefly mentioned plans for “legislation to ban exploitative practices and enhance employment rights.”

However, be advised regarding the briefing notes, which suggest alignment with Labour’s manifesto promise to “Make Work Pay,” but list commitments that may or may not be directly included in the Bill itself. Clarity will only come with the release of the actual Bill.

Detailed in the Prime Minister’s briefing notes, the forthcoming Employment Rights Bill will:

• Prohibit zero-hour contracts, ensuring workers are entitled to contracts reflecting their regular hours.
• Eliminate practices like ‘fire and rehire’ through legal reform and implement a strengthened code of practice (There are no signals as to what this replacement will look like).
• Grant parental leave, sick pay, and protection from unfair dismissal from the first day of employment, with considerations for probationary periods.
• Remove barriers like the lower earnings limit and waiting periods for Statutory Sick Pay.
• Establish flexible working as a day one right, mandating employers to reasonably accommodate such requests, reflecting the modern workplace.
• Strengthen safeguards for new mothers returning to work, preventing dismissal for six months except under specific circumstances.
• Create a Fair Work Agency to further enforce workplace rights.
• Implement a Fair Pay Agreement for the adult social care sector. This includes reviewing and assessing how and to what extent other sectors could benefit from such agreements.
• Reinstating the School Support Staff Negotiating Body, to establish nation terms and conditions, career progression routes and fair pay rates.
• Simplify the process for trade unions to obtain statutory recognition. Guarantee access to unions within workplaces for workers and union members via a regulated route. Repeal unnecessary legislation dictating minimum service levels during industrial action, and ensure industrial relations are grounded in good faith negotiation and bargaining.

Additionally, a draft Equality (Race and Disability) Bill aims to solidify equal pay rights for disabled individuals and ethnic minorities, alongside mandatory reporting of ethnicity and disability pay gaps — a move anticipated to face a myriad of practical challenges.

Significant changes are on the horizon, pending the unveiling of the draft legislation. If we can help you and your business with any HR or employment-related matters, please do not hesitate to get in contact with us.

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