Trade union leaders are currently in final discussions with ministers regarding the highly anticipated employment rights bill set to be unveiled this Thursday. This landmark legislation aims to provide new rights to around 7 million workers across the UK.
In a meeting on Tuesday with ministers, trade union officials sought to secure last-minute amendments before the bill’s official announcement. According to the Trades Union Congress (TUC), this comprehensive overhaul of workers’ rights could resonate with disillusioned Conservative and Reform voters, offering Labour a chance to reshape its narrative about the government’s achievements.
Paul Nowak, the general secretary of the TUC, highlighted the widespread appeal of Labour’s proposed initiatives for workers’ rights. He stated, “People are yearning for secure, decent jobs after 14 years of stagnant living standards. The government’s pledge to make work pay would boost incomes and improve job quality across Britain. It’s essential to move away from the Tories’ low-rights, low-pay mentality that allows responsible employers to be undermined by the irresponsible ones. We need to make work rewarding again.”
This bill marks one of the most significant revisions of labor rights in recent times, featuring provisions for immediate maternity leave and sick pay from the first day of employment, a ban on zero-hours contracts unless specifically requested by employees, and an end to fire-and-rehire practices.
The legislation will also reassess policies regarding parental and bereavement leave while enhancing union access to workplaces. TUC polling shows substantial support for extended maternity rights, sick pay, and protections against unfair dismissal, with two-thirds of respondents endorsing the elimination of fire-and-rehire strategies and zero-hours contracts.
Keir Starmer has committed to introducing this bill within the first 100 days of a Labour government, marking a critical first step in a long consultation process.
On Tuesday, union leaders met with Business Secretary Jonathan Reynolds, hoping for what would be the final discussions before the bill’s release. While some concerns exist regarding provisions tied to zero-hours contracts, it’s expected that most major unions will back the bill.
The legislation will grant new “day one” rights to millions of workers, notably including maternity leave—which previously required at least six months of service—and sick pay, which has until now been unavailable until the fourth day of illness. Workers earning less than £123 a week will still be exempt from sick pay. Additionally, the new measures will allow claims of unfair dismissal starting on the first day of employment, a notable shift from the previous two-year stipulation.
Reynolds and Chancellor Rachel Reeves have faced considerable lobbying from the business community concerning these plans. During the Labour conference, Reynolds addressed various concerns, clarifying that many of the apprehensions voiced by business leaders were based on misconceptions. He asserted that the proposed legislation would align with practices already adopted by ethical employers.
Further changes to pay structures are also on the horizon, including a reassessment of the Low Pay Commission’s responsibilities to better reflect living costs and the removal of age-related pay bands to establish a uniform minimum wage for all adults. However, some rights once promised by Angela Rayner are expected to be introduced as guidelines rather than formal legislation, such as the right for employees to disconnect from work communications after hours.
Lastly, the new legislation will introduce guidelines for probationary periods, allowing employers a six-month timeframe to terminate contracts based on performance issues, although this provision would not necessarily exclude circumstances leading to claims of unfair dismissal.