The King's Speech, delivered after the Labour Party's victory in the July elections, and the state opening of parliament, laid out a significant shift in employment law and we wanted to keep you updated.
The speech introduced two major legislative changes, the Employment Rights Bill and the draft Equality (Race and Disability) Bill, both of which aim to dramatically enhance workers' rights and tackle inequality in the workplace.
The proposed changes are designed to create a fairer labour market but will require significant consultation and legislative processes before becoming law. Most of these reforms are unlikely to take full effect until late 2025.
Key Employment Changes
1. Employment Rights Bill to be introduced within the first 100 days
Day-One Rights: Rights from the first day of employment, including protection against unfair dismissal, the ability to request flexible working, and access to parental leave and statutory sick pay.
Zero-Hour Contracts: The bill will ban these
Fire and Rehire Practice: where employees are dismissed and then rehired under less favourable terms, will be restricted.
Union Rights: The bill will strengthen trade union rights, with better access to workplaces and electronic balloting.
Redundancy Protections: for employees on or returning from maternity leave.
2. Draft Equality (Race and Disability) Bill:
This draft bill aims to extend equal pay provisions to cover race and disability, alongside gender
3. National Minimum Wage:
The minimum wage will be linked to the cost of living, with plans to eliminate age-based discrepancies, ensuring that younger workers receive the same minimum wage as their older counterparts.
4. Skills and Apprenticeships:
The creation of Skills England and reforms to the apprenticeship levy are intended to better align training with the needs of employers.