What is Labour’s Employment Rights Bill – and how has it changed?
The government has come under fire for reneging on its manifesto pledge to change a key element of the landmark workers’ bill.
Currently in its final stages, Labor said the Employment Rights Bill would “strengthen the collective voice of workers” as part of its ‘Pay for Work Plan’ launched ahead of last year’s general election.
A series of major changes thought to be spearheaded by former deputy chancellor Angela Rayner included a proposal to cut the “qualification period” for workers to claim unfair dismissal from 24 months to the first day in a new job.
This has now been reduced to six months in light of “a series of constructive discussions between unions and business representatives”, the government said in an update. He added that the change was necessary to ensure the bill passes parliament.
While Labor’s pre-election manifesto stated that it would “consult fully with business, workers and civil society on how to implement our plans before the law is passed”, it also promised protection against unfair dismissal from day one.
Business Secretary Peter Kyle insisted the concession was not a breach of Labour’s manifesto and said unions and employers had “gone through the difficult process of working together to find a compromise”, adding: “It’s not my job to stand in the way of that compromise.”
But Andy McDonald, Labor MP for Middlesbrough and Thornaby East, branded the move a “total betrayal” and vowed to press for its reversal.
“We cannot support this half-measure,” he said, adding: “This is the wrong move and I will be campaigning for this concession to be reversed.”
Here’s an overview of how the bill will transform the workplace for employees in the UK.
rights to a new day
The Employment Rights Bill is now expected to provide only parental leave and sick pay for all workers from the first day of work.
However, protection against unfair dismissal will now be available only after six months, instead of on the first day as on the day the bill was presented.
‘Exploitative’ zero-hours contracts banned
The new measures will ban what Labor calls “exploitative” zero-hours contracts to ensure workers receive a contract that reflects the number of hours they work. The rules would also require workers to be compensated for shift changes made without reasonable notice.
Firing and rehiring are illegal
The controversial practice of ‘dismissal and rehire’ is when an employer fires one or more employees in order to offer them a new contract on different terms (usually less advantageous terms).
The issue gained attention in 2021 when Tesco offered to make some delivery staff redundant and rehire them on lower pay. In 2024, the supermarket chain lost the case in the High Court due to a dispute with the Usdaw union. Tesco accepted the decision, which it said affected “a very small number of its colleagues”.
Labour’s plan stated: “Labour will end the scourges of ‘dismissal and rehire’ and ‘dismissal and replacement’, which leave working people at the mercy of bullying threats. We will reform the law to provide effective remedies against abuses and replace inadequate government legislation with a strengthened code of practice.”
Strengthening union rights
The government says the bill will “modernise trade union legislation” by giving unions “greater freedom to organise, represent and negotiate on behalf of their workers”.
Two of the key ways to do this are to repeal the Strikes (Minimum Service Levels) Act 2023 and most of the Trade Unions Act 2016.
The first bill introduced by the Conservatives would allow employers in certain sectors, such as healthcare and transport, to issue “work notices” during strikes to ensure a certain number of people remain at work. It was criticized as undermining the right to strike effectively.
By repealing the second bill, Labor will increase the industrial action mandate (the period in which action can continue after a vote) from six months to 12 months. It will also reduce the notice period the union must give to employers from 14 days to ten days.
