The King’s Speech 2024 introduces significant reforms to employment law in England and Wales, reflecting a growing emphasis on workers’ rights and equality. These proposals, centred around the Employment Rights Bill and the Draft Equality (Race and Disability) Bill, aim to create a fairer, more inclusive workplace environment.
Employment Rights Bill: Major Reforms Ahead
- Immediate Protection Against Unfair Dismissal
Employees will now receive protection against unfair dismissal from their first day of employment. This change bolsters job security and promotes fairer treatment across the board.
- Zero-Hours Contracts Reform
Exploitative zero-hours contracts face a ban, requiring that contracts reflect the average hours an employee actually works. This provides more predictable working conditions and financial stability.
- Fire and Rehire Restrictions
The new legislation introduces restrictions on the controversial “fire and rehire” practices. Employers will no longer be able to easily dismiss and rehire employees on less favourable terms, ensuring more stability for workers.
- Flexible Working as a Default
Flexible working becomes a default option from the first day of employment, supporting better work-life balance. This change aligns with modern working expectations, providing employees with greater autonomy over their work schedules.
- Introduction of the Fair Work Agency
The government will establish the Fair Work Agency to enforce compliance with the new employment regulations. This agency will play a critical role in ensuring employers follow the updated laws. By actively monitoring and enforcing these regulations, the agency will help protect workers’ rights and promote fair practices in the workplace. Through this oversight, the Fair Work Agency aims to create a more equitable and compliant environment for both employers and employees across England and Wales.
- Enhanced Union Rights
Trade unions will receive enhanced rights, including better access to workplaces and stronger support for union activities. This aims to empower unions in advocating for fairer working conditions and protecting employees’ interests.
Draft Equality (Race and Disability) Bill: Promoting Workplace Equality
- Equal Pay for Race and Disability
Equal pay provisions will be extended to cover race and disability, addressing pay disparities and promoting fairness across all demographic groups.
- Mandatory Pay Gap Reporting
Employers with over 250 employees must report on ethnicity and disability pay gaps. This move increases transparency and accountability, pushing organisations to address inequality more proactively.
Timeline for Implementation
The Employment Rights Bill could be introduced as early as 12 October 2024, but full implementation might extend into 2025 or 2026. The Draft Equality Bill, currently in its draft stage, will undergo consultation before becoming law. This extended timeline allows businesses time to adjust to the forthcoming changes.
How 360 Business Law’s Employment Team Can Support You
360 Business Law‘s employment team is ready to assist businesses in navigating these significant changes in employment law. They provide expert guidance on understanding and implementing the new regulations, ensuring full compliance, and advising on best practices. Services include reviewing and updating contracts, revising employment policies, and offering training to prepare your business for these legislative shifts.
Key Takeaway Points
Here are five key takeaway points from the blog:
- Immediate Protection: Employees will receive day-one protection against unfair dismissal, enhancing job security.
- Zero-Hours Contract Reform: Exploitative zero-hours contracts will be banned, requiring contracts to reflect average hours worked.
- Flexible Working Default: Flexible working will become a default right from day one, promoting work-life balance.
- Equal Pay Expansion: Equal pay provisions will extend to race and disability, aiming to reduce pay disparities.
- Fair Work Agency: A new enforcement body will ensure compliance with updated employment laws.