Since my last blog post, the election has happened and we have a new government in place. Then last week, parliament returned and it was time for the King’s Speech when plans for new legislation is laid out before MPs.
While no announcements were made about wages apart from a commitment to remove the age bands for the minimum wage or taxation this time – that will have to wait until a budget-style statement later in the year – there was some detail about some new bills around employment rights.
Employment Rights Bill
I have written before about new legislation the last government introduced around employment rights, which you can read here and here but the new Employment Rights Bill will legislate for a number of new initiatives including:
- Banning certain zero hours contracts to ensure employees have reasonable notice of changes in shifts and that contracts will be based on the number of hours an employee normally work. The government believes this will ensure there is flexibility on both sides of the employee/employer relationship which isn’t there now.
- Banning ‘fire and rehire’ which is where an employer terminates the employment of an employee only to fill that role with new employees who they pay less.
- Ensuring all workers have an entitlement to parental leave, sick pay and protection from unfair dismissal from their first day.
- Allowing more employees to become entitled to Statutory Sick Pay.
- Making flexible working the default option from the first day of employment for all workers.
- Banning the dismissal of a woman who has just had a baby for six months after her return to work, except in some specific circumstances.
- Introducing a Fair Pay Agreement into the adult social care sector.
- Updating union legislation so it works better in today’s economy and resetting the relationship with trade unions.
Skills England Bill
This bill will aim to bring together employers, unions and both devolved and national governments to build a skilled workforce. The new Skills England body will cover apprenticeships right up to the highly specialised skills needed to grow new industries and will map the gaps in training across the country. It will also encompass the Growth & Skills levy to ensure the right sort of training is eligible for funding under the levy.
Draft Equality (Race and Disability) Bill
This draft bill will legislate so that there is the full right to equal pay for ethnic minorities and disabled people. It will also make it easier for people to bring claims for unequal pay or pay discrimination.
In addition, it will require larger employers to report on ethnicity and disability pay rates with the aim to close pay gaps and create a more equal society.
All of these bills will now begin their process through parliament and it is likely there will be some changes along the way but we’ll be monitoring progress to see how things develop in the coming months.