UK Announces New Employment Policies

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Facts

  • The UK's Labour government has unveiled 28 individual reforms under its new Employment Rights Bill, including day-one-of-employment protections surrounding wages, firing and rehiring policies, and paid leave.[1][2]
  • If implemented, which could take two years, the law would protect 9M workers from unfair firing; add 30K fathers to paternity leave and 1.5M to parental leave; and give qualifying employees immediate access to sick pay.[3]
  • It would also ban enforced zero-hours contracts, giving employees the option to opt into minimum-hours contracts or not; require bosses to allow flexible work schedules; and ban firing and rehiring, which it claims is a "loophole" to replace workers or rehire them on reduced conditions.[1]
  • It's expected to allow 9M workers to take legal action over wrongful dismissal claims regardless of the length of their employment. However, a government source stated that employers who wish to fire someone "won’t be trapped in a cumbersome process."[4]
  • It also pledges to create "a new right to bereavement leave," implement "stronger protections for pregnant women and new mothers," account for "cost of living when setting the Minimum Wage," and eliminate "age bands."[2]
  • The government is reportedly preparing a separate document containing additional workers' rights, including a ban on contacting employees after hours except for emergencies and requiring employers to report ethnicity- and disability-based pay gaps.[3]

Sources: [1]Manchester Evening News, [2]GOV.UK, [3]The Guardian and [4]The Telegraph.

Narratives

  • Labour narrative, as provided by The Guardian. This bill is a tremendous attempt at protecting workers while also keeping businesses afloat. While the Labour Party is rightfully seeking to end exploitative contracts and unfair termination, it's also being pragmatic by allowing a consultation period to play out before enforcing wage- and hour-related policies.
  • Tory narrative, as provided by The Times. Starmer's Labour government has no idea how its policy proposals would impact real-world business owners. It does, however, know precisely how this bill would impact its wallet: With a fifth of the measure dedicated to extending the powers enjoyed by its trade union paymasters, the true purpose of this Labour-serving bill is apparent for all to see.

Predictions