The UK government has unveiled a new Employment Rights Bill aimed at enhancing worker protections and boosting the economy by improving pay and productivity. Introduced less than 100 days into office, the legislation marks a significant shift in the country’s approach to employment laws, aligning them with modern economic needs. The bill targets exploitative practices and provides more rights for workers, including measures to end zero-hours contracts and unscrupulous “fire and rehire” tactics.
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.” The proposed reforms aim to create a better balance between worker protections and business growth, reflecting a “pro-business, pro-worker” approach.
One of the key changes is the removal of the current two-year qualifying period for protections against unfair dismissal, granting all workers immediate protections from their first day on the job. Additionally, the government is planning consultations on a statutory probation period for new hires, allowing businesses more flexibility while ensuring workers’ rights are maintained from day one.
The bill brings 28 individual reforms, including the introduction of guaranteed hours for those on zero-hours contracts who work regular shifts, giving them more job security. Large employers will also need to address gender pay gaps and provide more support for women through the menopause. The bill also promises stronger protections for pregnant women and new mothers, extending dismissal protections for up to six months after returning from maternity leave.
Business Secretary Jonathan Reynolds highlighted the economic benefits of the reforms, saying, “Our plan will give the world of work a much-needed upgrade, boosting pay and productivity.” He noted that flexibility for employers, combined with stronger worker protections, would help businesses grow while improving living standards for workers.
In addition, the legislation seeks to make flexible working the default for all employees unless employers can prove it is unreasonable. Statutory sick pay will also be improved, removing the lower earnings limit and the waiting period before payments commence. A new Fair Work Agency will be created to enforce employment rights, such as holiday pay, and offer guidance to businesses on compliance.
The bill also repeals previous legislation that failed to prevent industrial action, including the Minimum Service Levels Act, and replaces it with measures intended to foster better industrial relations and reduce workplace disruptions.
The Employment Rights Bill is part of the broader “Make Work Pay Plan,” with future reforms under consideration, such as a “Right to Switch Off” outside work hours and mandatory reporting of ethnicity and disability pay gaps for larger employers.
These changes reflect the government’s ambition to tackle low pay, improve living standards, and support economic growth by ensuring fairer conditions for both workers and businesses across the UK.
