The UK Labour government has fulfilled one of its key election pledges by publishing the UK Employment Rights Bill within its first 100 days in power. The bill aims to “upgrade workers’ rights across the UK, tackle poor working conditions and benefit businesses and workers alike,” according to a press release by the government.

Ministers have called the Bill “the biggest upgrade to rights at work for a generation, boosting pay and productivity with employment laws fit for a modern economy.” The provisions will have an impact on millions of workers in the country.

But there are also concerns around the Bill, with fears that some of the proposed changes might discourage employers from recruiting new staff.

The Bill has been piloted by Deputy Primer Minister Angela Rayner. Writing in the FT, she said: We know that businesses are proud to treat their staff well and know it makes good business sense too. Our reforms will raise the floor and end the race to the bottom that saw some compete based on low pay, low standards and insecurity. The legislation will also level the playing field, ensuring that good employers aren’t undercut by bad ones, so all businesses can compete in quality and innovation.”

Fair Work Agency

A new body called The Fair Work Agency will be created, which will have the authority to enforce the the various provisions included in the new Bill, according to reports.

At its heart, the Bill aims to follow an approach that will benefit workers and employers equally, and upgrade some of the UK’s employment laws which were deemed no longer fit-for-purpose in the modern world.

“Shifting the balance to give workers greater rights is long overdue. Expectations are high for this bill, which should bring once-in-a-generation changes to the workplace.”

Christina McAnea, head of labor union Unison

The government says: “Employees are most productive when they are happy”, and that the new Bill will help businesses grow by providing their employees much needed flexibility around working practices.

Key features

The government’s press release has highlighted some of the key features of the Bill. They include:

• Workers will no longer have to wait for two years before they are protected from unfair dismissal. Instead, they will have such protection rights from the start of their employment.
• Workers will be eligible for statutory sick pay (SSP) from day one. Currently this entitlement starts from the fourth day of sickness.
• There will also be more flexibility around leave. For example, new hires will not have to wait for 26 weeks before they are eligible for paternity leave. They will be able to claim it from day one. Parents can also claim unpaid parental leave right from the start of their employment. The same will apply to unpaid bereavement leave.
• The Bill aims to pave the way for more flexible working. For example, bosses will find it harder to reject requests to work from home unless they can provide satisfactory reasons.
• There will also be consultation on reducing the statutory probation period to nine months, giving new hires more confidence around job security.
• Large employers will also be required to “address gender pay gaps, support employees through the menopause, and protect pregnant women and new mothers from unfair dismissals.”
• The new enforcement body will be able to send out inspection officers to check whether employers are breaching the Bill. They will also encourage whistleblowers to report abuses.
• The Bill wants to put an end to zero-hours contracts and will require employers to offer guaranteed-hours contracts.

Concerns about the Bill

Despite the government’s assurances that the Bill will benefit businesses in the long term, there are concerns within the industry about some of the proposed changes.

Some experts have called the Bill a “rushed job, clumsy, chaotic and poorly planned”, with concerns that smaller businesses will not be able to clearly understand what the changes mean for them.

There is also some unease around the changes to probation periods, sick leave and working arrangements. One employer told the BBC it was “delaying hiring plans and being more cautious of who it takes on.”

There has also been criticism from the likes of Sir Martin Sorrell, head of one of the world’s largest advertising agencies. He has said the Bill “will endanger and discourage productive expansion and new investment in the UK and encourage investors to look elsewhere.”

But the Bill’s backers have also criticised the government for its proposed consultation period of up to two years around the Bill. This could mean some changes won’t take effect before autumn 2026, according to reports.

The government has also been criticised for not including some of its originally proposed reforms in the final Bill. For example, the right to switch off, which will stop employers from contacting employees during out of office hours, has not made the final cut and will now be included in a separate code of ethics.

“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.”

Angela Rayner, Deputy Prime Minister

Despite these concerns, the overall reaction from trade unions is said to be positive. The head of public sector workers’ union Unison, Christina McAnea, has told The Guardian: “Shifting the balance to give workers greater rights is long overdue. Expectations are high for this bill, which should bring once-in-a-generation changes to the workplace.”

The government has said its plan to reform the work sector does not stop with this Bill, and that it has already published a Next Steps document which will discuss how employment rights can be secured in line with changes to the economy and the labour market.