Government unveils most significant reforms to employment rights for a generation to boost pay and productivity

Today (10 October) the government has published a once in a generation set of employment rights reforms. 

The Employment Rights Bill will get the labour market moving again, delivering greater flexibility for workers and businesses alike. The Bill contains 28 individual employment reforms, from ending exploitative zero hours contracts and fire and rehire practices to establishing day one rights to protection against unfair dismissal and to paternity, parental and bereavement leave. 

Statutory sick pay will be strengthened and flexible working will be made the default, whilst large employers will be required to create action plans on addressing gender pay gaps and supporting employees through the menopause, and protections against dismissal will be strengthened for pregnant women and new mothers. 

The Bill follows a series of roundtables with businesses, trade unions and other stakeholders. Responding to the government's initiative, these businesses and employee groups have said: 

Shirine Khoury-Haq, CEO of the Co-op, said:  

"We support the Government's ambitions to strengthen rights for workers and value the co-operative approach to involve employers in the reforms. As the UK's largest consumer co-operative, Co-op has long supported colleagues to have good working lives, with policies like our leading bereavement leave, day one right to request flexible working arrangements, and menopause support already in place. The positive impact of these policies is clear to see. 

“Being able to support colleagues when they need it, and in particular women, parents and carers, helps retain valuable talent and makes good business sense. We look forward to continuing to work with Government to make work pay and to deliver economic growth.” 

Paul Nowak, TUC General Secretary, said:   

“After 14 years of stagnating living standards, working people desperately need secure jobs they can build a decent life on.    

“Whether it's tackling the scourge of zero-hours contracts and fire and rehire, improving access to sick pay and parental leave, or clamping down on exploitation – this Bill highlights the Government's commitment to upgrade rights and protections for millions.    

“Driving up employment standards is good for workers, good for business and good for growth. While there is still detail to be worked through, it is time to write a positive new chapter for working people in this country.”    

Jane van Zyl, CEO at Working Families, said:  

“As campaigners for better rights for working parents and carers, we're pleased there is hope on the horizon for the millions who stand to benefit from the transformational changes in the proposed Employment Bill.  

Establishing workplace rights from day one and making flexible working the default could be the key to unlocking labour market mobility, with the promise of getting the economy moving and ensuring parents and carers are not held back in their careers. In addition, we welcome any strengthening of legislation that helps protect pregnant women and new mothers against losing their jobs unfairly at a vulnerable time in their lives.  

The proposals in the Plan to Make Work Pay have the potential to remove barriers in the workplace, give a better start for new parents and reduce gendered roles in caring. The message it sends that worker's rights matter, and the willingness to address inequalities, is very promising.”  

Simon Roberts, Chief Executive of Sainsbury's, said: 

“As one of the UK's largest employers we put our colleagues at the heart of everything we do. We see the clear link between engaged, motivated colleagues and business performance and that is why we have increased colleague pay by over 50% in the last 5 years. 

We share the Government's vision of making work pay, enabling growth and driving productivity. We welcome today's announcement and Government engagement with business to date and look forward to seeing progress on business rates reform, which would deliver real benefits for our colleagues, customers and communities.” 

Peter Cheese, Chief Executive of CIPD, the professional body for HR and Learning & Development professionals, said:  

"We share the Government's ambition to raise employment standards and job quality through the Employment Rights Bill as part of the wider Make Work Pay agenda.  

“The changes being proposed represent the greatest update in employment legislation in decades. We're pleased to see the ongoing commitment from Government to engage with the business community to work through the important details to ensure they have a positive impact for both employers and workers.” 

Jemima Olchawski, CEO of Fawcett Society, said: 

“Today's draft employment bill is a win for women. Fawcett and our members have campaigned long and hard to see government chart a new course for inclusive economic growth and to improve women's working lives. We share this government's ambition to ensure all women can thrive at work and fully contribute to the economy.” 
  

Mark Reynolds, Mace Group Chair and Chief Executive, said:  

“Ensuring British workers are supported with strong employment rights benefits everyone – employers as well as employees. This package of reforms is a welcome insight into the Government's plans and show that they have engaged extensively with businesses and taken a pragmatic approach. We're pleased to support it; both on behalf of Mace and the wider construction industry. We look forward to working closely with the Government as they take these plans forward.”  

Brian McNamara, CEO of Haleon, said: 

"It is crucial that the Government continues to engage with the business community on such an important piece of legislation and we welcome the dialogue to date. Haleon is committed to creating an inclusive culture that provides all employees with equal opportunities.  This is central to our company strategy and will be core to our future success." 

Greg Jackson, CEO of Octopus Energy, said:  

“In formulating these proposals it's clear that the government has listened to both workers and employers to create protections against bad practices while enabling good businesses to invest in growth and training. For example, the probation period will allow progressive employers to give a chance to people without typical experience or educational backgrounds, opening up new opportunities for them in great careers.” 

Chris O'Shea, CEO of Centrica, said: 

"As the largest Unionised workforce in the energy sector, we are pleased to see the Government publish their landmark legislation providing more rights and flexibility to employees. 

“At Centrica, we offer a range of policies to support our 21,000 colleagues including flexible working and health and wellbeing support from day one, a leading 10 days paid carers policy, our Pathway to Parenthood which offers comprehensive financial support towards fertility treatment alongside paid leave to for any fertility, adoption or surrogacy appointments, and additional support for neurodivergent colleagues. It's the right thing to do and we want to help our employees and share best practices with others. Our experience shows that there is a clear business case for doing this with savings from increased retention and ensuring colleagues don't have to take unplanned absences.” 

Helen Dickinson OBE, CEO of the British Retail Consortium, said: 

“As the country's largest private sector employer, employing three million people, the industry stands ready to work with government to ensure these reforms are a win:win for employers and colleagues, and maximise employment opportunities, investment, and growth. Many of the expected provisions, including stopping exploitative contracts and offering flexibility in employment, are things that responsible retailers already do. Introducing these standards for everyone means good employers should be competing on a level playing field. We look forward to engaging the government on the details, including around seasonal hiring and the use of probation periods.” 

Kate Nicholls, CEO of UKHospitality, said:  

“I'm pleased the Government has recognised the importance of flexibility to both workers and businesses. This is crucial for hospitality, which employs 3.5m people and provides countless flexible roles for working parents, students, carers and many more. 

“We look forward to continuing our engagement and consultation with the Government on its plans, which are not without cost, to get the details right for all parties.” 

BT Group spokesperson, said: 

“BT Group believes that a strong economy is one that works for everyone, and has already adopted many of the measures that will be covered by this legislation.  It will be crucial to get the details right, to avoid unintended consequences and keep the UK competitive, and we welcome the constructive, consultative approach that the Government is taking.”