Inside Labour's Employments Rights Bill – what you need to know

Before the July 4 General Election, they pledged to introduce their "New Deal for Working People" – later renamed "Labour’s Plan to Make Work Pay" – within the first 100 days in office. It did so on Thursday, October 10, by publishing the Employment Rights Bill. The passing of the deadline of 100 days was to have been by Monday, October 14.

Given that two of those final days are non-working weekend days and the House of Commons does not sit on a Friday in order to let MPs be in their constituencies, that was cutting it fine to say the least.

(Image: Stefan Rousseau)

There is a fairly simple explanation for cutting it so fine – the extra time was taken up with consultations with business on the reform of employment laws. There was no need for this as Labour won a clear majority on a manifesto which included all the "New Deal for Working People" pledges. The fear has been that these consultations would lead to a watering down of the pledges already provided.

But, as former Labour Party general secretary Ray Collins was often wont to say, "We are where we are" – so what of the content of the bill?

What's in the bill?

AT more than 150 pages in length, there is much wordage in the bill but for the most part it is legalese covering rights to guaranteed hours (to reduce use of zero-hour contracts), rights to unfair dismissal, sick pay and parental leave (all from day one of employment), reasonable shift notices, ending "fire and rehire on worse terms", flexible working requests, tipping, time off for union duties, electronic balloting on voting for industrial action, and public sector outsourcing.

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The devil is not only in the detail on some of these changes but also how they are then interpreted and applied by ministers and, subsequently, the courts. For example, how much statutory sick pay is worth and how long paid parental leave lasts for are just as critical as being from day one of employment.

Suffice it to say there are still many issues on which unions and labour lawyers felt much more could have been done What is more certain and definite is the repeal of the Trade Union Act 2016 and Strikes (Minimum Service Levels) Act 2023 which further restricted the ability of unions and their members to take industrial action. There will be the creation of statutory negotiating bodies for adult social care workers in England and for school support staff in England. Changes to collective dismissal law will outlaw any more P&O-type instant mass sackings called "fire and replace".

(Image: Andrew Milligan)Employers will be required to provide employees with a statement saying they are entitled to join a union but the creation of rights of access for unions to recruit workers will be as complicated as they presently are for gaining statutory union recognition. However, changes will mean that the required levels of worker support to gain union recognition will be lower and the requirement to use ballots will be replaced by membership checks.

How long will it take for the rights to come into effect?

MOST of the changes will be introduced over a period of two years after the bill passes through the parliamentary process to become an act, possibly in the spring of 2025.

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There will be further consultations with employers on issues like the remit and powers of the Fair Work Agency, which will bring together existing enforcement agencies, and the obligations of the Low Pay Commission to take into account the cost of living when setting the minimum wage levels. Consequently, some of these rights are not expected to come into effect until after 2026.

What’s not in the bill?

ITEMS missing from the bill that were in the "New Deal for Working People" include legislation on the right to "switch off" and so preventing employees from being contacted out of hours, more moves to end pay discrimination through mandatory pay audits and creating a single status of worker to prevent the use of bogus self-employment. Labour say other future consultations and legislation will be required for these items.

What's been watered down?

THE right to unfair dismissal from day one is the clearest example here. It has been countered by employers insisting on probationary periods lasting at least nine months, where workers can be sacked without full due process.

What does this mean for Labour?

MOST unions have welcomed the bill but only as a first step. They are unhappy that more has not been done now. They will engage with Labour in their future consultations on further measures. In the meantime, they may seek to table some amendments using likeminded MPs and Lords to stiffen up the measures in the bill.

But ultimately, they must decide whether funding Labour is still warranted by these reforms. This is the step before pressing the nuclear button of disaffiliation. With the Tories to be led by an even more reactionary leadership, the majority will step back from that option.

Gregor Gall is a visiting professor of industrial relations at the University of Leeds and author of the ‘Mick Lynch: The making of a working-class hero’ (Manchester University Press, 2024)