The UK government is set to introduce amendments to the Employment Rights Bill following weeks of consultation with business groups, trade unions, and wider civil society.
The UK government is planning to introduce amendments to the Employment Rights Bill, aiming to tackle low pay, poor working conditions, and job insecurity.
Key changes include better protections for agency workers, stronger redundancy rules, expanded Statutory Sick Pay, and stricter regulations on umbrella companies.
The goal is to boost economic growth while ensuring fairness for workers.
These changes reflect the government’s commitment to a balanced approach, ensuring the plan to Make Work Pay is both pro-business and pro-worker, the Department for Business and Trade said in a release.
The amendments will address concerns raised in consultations on issues ranging from zero-hours contracts to Statutory Sick Pay. The aim is to tackle low pay, poor working conditions, and job insecurity, which have been obstacles to economic growth in the UK.
The Employment Rights Bill is a key element in the government’s mission to grow the economy, raise living standards, and create opportunities for the people of the UK. With this Bill, the government seeks to extend employment protections to millions of workers, aligning the UK more closely with other advanced economies that are already adapting to the changing nature of work.
The Bill’s impact assessment, published last year, noted that the policies could have a modest direct effect on economic growth, but they would help raise living standards and create opportunities for all. This approach, blending business and worker interests, is seen as the pathway to a decade of national renewal.
The government has also considered the varied needs of workers, businesses, and the economy in crafting the proposed amendments. Key provisions of the amendments include measures to ensure that all workers, including up to 900,000 agency workers, receive contracts that reflect the hours they regularly work. These amendments aim to close loopholes in the treatment of agency workers and ensure more predictable work patterns, while still offering flexibility for employers.
In response to abuses of collective redundancy rules, the government is proposing to increase the maximum period for a protective award from 90 days to 180 days and will provide further guidance on consultation processes. This is designed to strengthen protections for employees during redundancies and increase the deterrent against employers failing to comply with consultation obligations.
A major shift will occur in the area of Statutory Sick Pay, which will now be a legal right for all workers, benefiting up to 1.3 million low-wage employees who find themselves unable to work due to sickness. These employees will receive either 80 per cent of their average weekly earnings or the current rate of Statutory Sick Pay – whichever is lower. These changes also ensure that workers are entitled to Statutory Sick Pay from the first day of sickness absence, aiming to improve workers’ health, reduce workplace infections, and boost productivity.
The government is also targeting non-compliance in the umbrella company market, ensuring that workers engaged through such companies enjoy the same rights and protections as those employed directly by recruitment agencies. This action is expected to address exploitation in the sector.
The government believes that a strong package of workers’ rights is essential for a strong economy. A secure workforce, the argument goes, is more productive and more confident in spending, which in turn fuels economic growth. In addition, the creation of a level playing field for businesses is seen as critical for the economy to flourish.
The establishment of the Fair Work Agency, which will take action against rogue employers, further supports the government’s goal of creating a business environment where most employers can thrive while treating their workers fairly.
“We are turning the tide – with the biggest upgrade to workers’ rights in a generation, boosting living standards and bringing with it an upgrade to our growth prospects and the reforms our economy so desperately needs,” said Deputy Prime Minister Angela Rayner.
“Many businesses already have worker friendly practices in place and can attest to the positive impact they have on retention, productivity and job satisfaction. We want to go further and untap the UK’s full potential by attracting the best talent and giving business the confidence to hire to help the economy grow,” stated business secretary Jonathan Reynolds.
“Everyone deserves security and respect at work. These common-sense reforms will improve the quality of jobs in this country, boost growth and put more money into people’s pockets,” said Paul Nowak, TUC general secretary.
“Regulating the umbrella market closes a loophole in addressing non-compliance. Recruiters have long called for regulations that ensure a level playing field. Like all aspects of the government’s changes, proper enforcement will be key to protecting both businesses and workers,” explained Neil Carberry, CEO of Recruitment & Employment Confederation.
Fibre2Fashion News Desk (HU)