The government have announced a raft of changes to their landmark workers’ rights legislation, a bill which they say marks a “generational change”.
The controversial legislation has been watered down since Labour first announced the plans before the election, but on Tuesday a number of amendments have been brought in to give workers more robust rights before the bill enters it’s final stages next week.
Business groups argue the Employment Rights Bill could stifle economic growth, while unions have welcomed a number of the changes put forward.
Deputy Prime Minister Angela Rayner insisted the plans are “good for workers” and “good for businesses”.
The bill will give workers immediate access to sick pay and parental leave, as well as bringing in a ban on some zero-hour contracts, and most fire and rehire practices.
But what are the new changes put forward and how could they affect you? ITV News explains.
Ban on ‘exploitative’ zero hours contracts to apply to agency workers
The ban on “exploitative” zero hours contracts will be broadened to apply to agency workers, a move welcomed by unions who had been lobbying for the change.
The new rules will mean agency workers would have to be offered a contract with a set number of hours a week, and those who choose to be on zero-hours contracts could get compensation if their shifts are changed last minute.
The government hasn’t laid out what kind of time period would be considered “short notice”.
Unions had been concerned companies would use agency workers to get round the ban on “exploitative” zero-hours contracts.
Despite previously promising to ban zero-hours contracts entirely, before the election Labour watered down the pledge to add in the word “exploitative”, allowing some workers to opt to stay on zero hours.
Statutory sick pay becomes a legal right for all workers
The government are also extending sick pay to workers earning under £123 a week from day one of their illness. Staff will be paid 80% of their average weekly earning or £116.75 statutory sick pay, whichever is lowest.
At the moment, workers must be off work sick for three days in a row to qualify for statutory sick pay.
Scrapping the ‘right to switch off’
One area of the bill that has been watered down for employees are plans to give people the “right to switch off”.
Labour had promised to make it illegal for companies to expect workers to be contactable outside their working hours, but that pledge has now been dropped after concerns from businesses.
When asked on Tuesday about the plans being dropped, Rayner suggested the government will “deal with” the issue in a “statutory code”, but media briefings by government sources suggest the commitment has been scrapped entirely.
Doubling penalties on companies who practice ‘fire and rehire’
When the government first outlined the bill, they already promised they would be banning most fire and rehire practices, but an amendment today doubles the penalties companies can face if they use fire and rehire.
Companies could now be forced to pay the worker they have fired and rehired 180 days’ worth of pay in compensation, which is double the current 90-day penalty payment.
Expanding bereavement leave to couples who have a miscarriage before 24 weeks
The changes could also give parents the right to two weeks bereavement leave if they have a miscarriage before 24 weeks gestation. Under current rules parents could only get bereavement leave after 24 weeks.
Many companies and organisations already offer this, but the plans will make it a universal right in England, Wales and Scotland.
Other changes
Some of the other changes include adapting the way employees can get trade union recognition and the way industrial action is staged.
Currently workers have to give 14 days notice to stage industrial action, but that will be lowered to ten.
The government will also have the power to lower threshold at which employees can ballot for union recognition – it’s currently 10%.
The length of time before a mandate for industrial action expires will also increase from six to 12 months.
Umbrella companies will also now be regulated by the government over their employment rights under the changes.
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