In a significant move to enhance workers' rights, Angela Rayner, the British Deputy Prime Minister, has announced plans to introduce new legislation next month. The Employment Rights Bill, described as the most substantial improvement in workers' rights in a generation, aims to address several key issues in the UK labor market.
The proposed legislation seeks to prohibit zero-hour contracts, a practice that currently affects approximately one million workers in Britain. These contracts, which became prevalent in the 2000s, do not guarantee minimum working hours and only compensate employees for the time they are on shift. The bill also aims to outlaw controversial "fire and rehire" tactics, a practice that gained notoriety during the COVID-19 pandemic.
Rayner stated, "We'll be putting the legislation forward next month. People will see better workers' rights, the most improved workers' rights for a generation."
The Labour Party, founded in 1900 and currently in opposition since 2010, is attempting to balance the demands of trade unions - traditional funders of the party - with the concerns of business leaders. This delicate negotiation reflects the complex history of workers' rights in the UK, which dates back to the Industrial Revolution.
Key provisions of the bill include:
- Banning zero-hour contracts
- Outlawing fire and rehire tactics
- Providing parental leave from day one of employment
- Offering sick pay from the first day on the job
- Ensuring protection from unfair dismissal immediately upon starting work
It's worth noting that while these rights would be available from the first day, probation periods would remain in place.
The announcement comes as the Labour Party holds its annual conference in Liverpool, the fifth-largest metropolitan area in the UK. The timing is significant, as the party had promised to produce this legislation within 100 days of the July 2024 national election.
Earlier in September, Rayner and Business Secretary Jonathan Reynolds met with businesses and trade unions to discuss the elimination of zero-hour contracts. This meeting aimed to address the "one-sided" flexibility such contracts offer and ensure workers receive reasonable notice for shift changes.
The proposed changes to sick pay are particularly noteworthy, as the UK's current statutory sick pay is among the lowest in Europe. Similarly, the focus on parental leave reflects the significant evolution of such policies in the UK since the 1990s.
While the Labour Party, symbolized by a red rose, pushes forward with these reforms, some businesses have expressed uncertainty about the government's plans. This tension highlights the ongoing challenge of balancing workers' rights with business interests, a struggle that has been part of UK labor law since the passage of the first Employment Protection Act in 1975.
As the UK grapples with the changing nature of work, including the rise of the "gig economy" in the 2010s, this new legislation represents a significant step in shaping the future of employment rights in the country.
"People will see better workers' rights, the most improved workers' rights for a generation."
The introduction of this bill marks a potential turning point in UK labor law, building on the legacy of previous landmark legislation such as the Trade Union and Labour Relations (Consolidation) Act 1992 and the introduction of the minimum wage in 1999 by a previous Labour government.