The King’s Speech: Further insight on Labour’s plans

The King has delivered his parliamentary speech, giving further insight into how Labour’s plans and the proposed changes to employment law will be implemented.

Following our previous blog post on the anticipated changes and how employers can prepare, we have summarised the additional points we now know.

Employment Rights Bill

We covered anticipated family and parental leave changes in our previous blog, but the King’s speech confirmed that parental leave will be a day 1 right, along with sick pay and protection from unfair dismissal.

Probationary periods will continue to be allowed to ensure employers can assess new hires but it is still not clear how the day 1 protection from unfair dismissal and probationary periods will coincide.

The King’s speech also confirmed that flexible working will be the default position from day 1 for all workers to reflect the modern workplace.

For Statutory Sick Pay, it has been confirmed that the lower earnings limit will be removed and that SSP will be available to all workers.  The 3-day waiting period will also be removed.

We now also know that it will be unlawful to dismiss a woman for 6 months after she returns to work having had a baby, except in specific circumstances (for which the detail has not been provided).

Removing an employer’s right to ‘fire and rehire’ has been on the radar for a while. The previous statutory code will be replaced and new remedies will be introduced for employees meaning that an employer’s ability to dismiss an employee and then rehire them on new terms that are generally less favourable will be restricted.

Trade unions

Labour’s pro trade union stance is reflected in legislation which updates regulation and de-restricts trade union activity. The government’s idea is that industrial relations will be based around good faith negotiation and bargaining.

The updated legislation will streamline the process of statutory recognition, introducing a regulated route to ensure workers and union members have a reasonable right to access a union within workplaces.

The Bill will also introduce a Single Enforcement Body, a ‘Fair Work Agency’, to strengthen enforcement of workplace rights.

Equality (Race and Disability) Bill

There will be new legislation implemented that mirrors measures in the Equality Act 2010, but for equal pay and gender pay reporting. The new legislation will give full right to equal pay in law for ethnic minorities and disabled people. This hopes to remove barriers and make it easier for employees in bringing unequal pay claims.

It will also introduce mandatory ethnicity and disability pay reporting for larger employer (250+ employees). This intends to close the ethnicity and disability pay gaps, in hope that companies will consider why they exist and discuss how to tackle them once the gaps come to light.