A waiter sets a table in the City of London, UK.
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LONDON — British employees are set to gain a slew of employment benefits under flagship legislation put forward by the new Labour government on Thursday, including stronger rights to sick pay and an entitlement to take paternity leave from the first day in a job.
Key measures in the Employment Rights Bill include protection against unfair dismissal from the start of a new role — removing the current two-year qualifying period — and the introduction of a statutory probation period for all new hires. Additionally, it prescribes granting many workers on zero-hours contracts the right to a contract with guaranteed hours, as well as requiring companies to make flexible working the default, where possible.
Workers will also be eligible to take unpaid parental or bereavement leave from day one of a job, and to claim statutory sick pay from the first day when they are unwell, rather than the fourth. Pregnant women and new mothers will gain stronger protections against dismissal.
The government said it would also “shut down the loopholes that allow bullying fire and rehire and fire and replace to continue.” “Fire and rehire” refers to the practice of firing an employee and rehiring them on new terms.
The bill’s details were published by Prime Minister Keir Starmer’s office on Thursday and pend debate and approval in the U.K. parliament, as well as further consultation with businesses, meaning they are not expected to come into force for at least two years.
Starmer said on social platform X the reforms would be the “biggest upgrade to workers’ rights in a generation.”
It is one of the first major pieces of legislation set out by the Labour government, which took office in July. Starmer and Finance Minister Rachel Reeves are also preparing to deliver their first budget at the end of the month.
A ‘step forward’
Sharon Graham, the general secretary of one of the U.K’s biggest unions Unite, called the changes a “step forward,” praising the end of so-called “Minimum Service Levels” which compel some key workers to provide a minimum level of service during strike action.
However, Graham said the bill would not fully ban “fire and hire” practices and zero-hours contracts, which she said “hostile employers” would continue to use.
“The Bill also fails to give workers the sort of meaningful rights to access a union for pay bargaining that would put more money in their pockets and, in turn, would aid growth,” Graham added.
The Federation of Small Businesses, a trade group, meanwhile argued that employers would be left “scrambling” to make sense of the changes and would increase the risks they undertake on new staff, denting hiring, growth and investment.
“Small firms are the ones most likely to give opportunities to people furthest from the labour market, such as those returning after long-term health issues or caring responsibilities. This legislation risks deterring small employers from taking a chance on someone who has had a significant period out of the workplace, shutting those doors and deepening social exclusion,” Tina McKenzie, policy chair at the FSB, said in a statement.