UK Government announces ‘upgrade’ to workers’ rights in new bill

Under a proposed overhaul of UK workers' rights, more individuals will become eligible for statutory sick pay, parental and bereavement leave, and enhanced protections regarding unfair dismissal.

Most of the proposed changes are scheduled to take effect in two years following a consultation period, but we recognize the challenges this will pose for organizations today, understanding the changes, the impact they will have, and what actions need to be taken to comply with the new legislation and mitigate any risks.

The government characterized the bill as "the biggest upgrade to rights at work for a generation," aiming to balance worker and business interests, with several details still under discussion.

Ministers have indicated that this change would impact approximately nine million workers who have been employed by their current employer for less than two years.

What will change?

Flexible working: Employers must consider all flexible working requests from the first day and grant them unless they can demonstrate it is unreasonable.
Statutory sick pay (SSP) with lower earning threshold: Employees will be eligible for SSP starting from the first day of illness, instead of from the fourth day. Additionally, workers currently earning under £123 weekly, who are ineligible for SSP, will see this restriction lifted, introducing a reduced sick pay rate for lower earners.
Paternity leave and unpaid parental leave: Eligibility for paternity leave will begin from the first day of employment, rather than at 26 weeks (about 6 months). Unpaid parental leave will be available from day one of employment, instead of after a year.
Unpaid bereavement leave: This will become a right for workers from day one of employment.
Unfair dismissal protections: Removal of the current two-year qualifying period for unfair dismissal protections. However, there will be a proposed nine-month probation period during which workers could be dismissed without a full process.
Zero contract hour regulations: Employers must provide workers with a guaranteed-hours contract reflecting hours worked over a 12-week span. Zero-hour contract workers should also expect "reasonable" notice of any shift changes and to be compensated for cancelled or reduced shifts.

"Too many people are drawn into a race to the bottom, denied the security they need to raise a family while businesses are unable to retain the workers they need to grow," said Deputy Prime Minister Angela Rayner.

"We’re raising the floor on rights at work to deliver a stronger, fairer and brighter future of work for Britain."

Approximately 30,000 fathers or partners will qualify for paternity leave due to this change, and 1.5 million parents will gain the right to unpaid leave from the first day.

Find out more in upcoming webinar

Join an upcoming joint webinar with Impellam UK and DWF (UK and Ireland) on employment law changes under the new Labour government. It will cover the key upcoming changes and how employers can prepare for the future.

We're committed to partnering with organizations to help them always stay ahead of legislative changes, to protect their businesses from risk.

For more information on maximizing efficiency whilst ensuring your organization follows worker rights legislation for your contingent workforce – both now and in the future - contact us.