How will the Government's landmark reforms to employment rights impact your business?
How will the Government's landmark reforms to employment rights impact your business?
The Government has introduced the long-awaited Employment Rights Bill (ERB), promising the most significant reform to workers' rights in over a generation. This ground breaking legislation addresses critical employment challenges and introduces major reforms aimed at increasing protection and fairness for workers.
Key Takeaways from the Employment Rights Bill:
🟢 Day-One Employment Rights:
A key proposal in the ERB is removing the existing 2-year qualifying period for workers to gain employment rights. Under the new rules, employees will have rights from day one. The government, however, plans to consult on a statutory probation period that could extend up to 9 months.
🟢 Zero-Hour Contracts:
To combat exploitative zero-hour contracts, the ERB introduces measures to ensure guaranteed hours in specific situations, moving towards greater stability for workers. This change is expected to help workers in traditionally insecure roles find more predictable employment conditions.
🟢 Flexible Working
Under the new bill, flexible working will become the default option for employees unless employers can prove that it's unreasonable. This is part of a broader strategy to provide employees with better work-life balance. Additionally, expectant or new mothers will receive added protection from dismissal, and a new right for bereavement leave is also being proposed.
🟢 Fair Work Agency
The government plans to establish a new Fair Work Agency, a "super-regulator" that consolidates existing bodies such as the National Minimum Wage Enforcement, GLAA, and the Employment Agency Standards Inspectorate. This will ensure greater compliance with employment laws and better enforcement of workers' rights.
Additional Reforms Announced:
In addition to the headline reforms, the government has highlighted other areas for future review. This includes moving towards a two-part framework that separates workers and the self-employed for clearer employment status definitions.
What Does This Mean for Recruitment Agencies and the Supply Chain?
The ERB recognizes the importance of the agile workforce and offers individuals the opportunity to choose whether they remain on a zero-hours contract or not, providing greater flexibility for both employees and employers.
Looking Ahead: Countdown to the Autumn Budget
With the Autumn Budget around the corner, expect updates on key areas such as tax reforms, pensions, and apprenticeships. Be sure to stay informed as we navigate these upcoming changes. For the latest insights, keep an eye on our website and follow us on social media.
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