Labour’s bill aims to end unfair dismissals and zero-hour contracts, standardize flexible work, and bolster worker rights across the United Kingdom.
Bosses must approve requests for flexible hours, including working from home. Some fear staff will demand a four-day work week. Compressed hours let them work the same time faster.
This plan could cost UK businesses £5 billion annually. Small businesses will likely feel a bigger impact, as they employ 13 million workers nationwide. Most policies won’t be effect until 2026 or later.
Surveys show many employers worry about these changes. A large portion of the employers may hire fewer staff, and others might even reduce their current staff.
The bill lets workers claim unfair dismissal from day one, removing a two-year waiting period. Workers get a nine-month probation during which employers can dismiss them easier.
One business group says the bill could harm small firms. This harm could lead to more needing benefits, and living standards may significantly drop, they fear. SMEs create many jobs, so the impact could be large.
The new rules could change how firms recruit. Employers must manage employees well from their first day. Shorter dismissal processes will no longer be used, requiring more training for managers.
The government wants to ban unfair zero-hours contracts. Workers will get guaranteed hours and notice of shifts. Compensation is coming for cancelled shifts.
Bosses must offer guaranteed hours based on past work for zero-hour workers that have none. Workers can still choose a zero-hours contract, but they keep rights for minimum guaranteed hours.
Flexible working is becoming the norm now. Bosses must approve requests if they’re reasonable. Flexible hours can include start times or working from home, and a four-day week may become more common.
Workers can ask to adjust their work now, but employers do not have to agree. The bill limits reasons to deny flexible working, including added costs and detrimental effects on work.
Workers get Statutory Sick Pay (SSP) from day one and there isn’t a minimum earning limit anymore. Currently, workers must be sick for three days. Now, even low earners can receive payments.
Lower earners get a lower rate of sick pay however. Firms must update HR policies because of this change. They need to make sure systems track absences, and payroll systems must reflect this new data.
The government wants to stop “fire and rehire” practices. They consider dismissals for refusing a new contract unfair. Companies often do this to cut costs quickly.
They change contract terms, like pay or shifts. Workers who decline could be dismissed and then rehired later. The new bill stops this in most events, although companies facing insolvency have an exemption.
The government plans to give unpaid leave. This will extend to paternity and parental leave, starting from the very first day of employment. Bereavement leave will also follow this pattern.
