Understanding the Government’s “Make Work Pay” Plans.

The Labour government was clear during the election campaign that they wanted to “Make Work Pay”. Last week further information was shared in the latest draft Employment Rights Bill which is the first phase of the government’s plan to Make Work Pay.

Although some aspects will be delivered through other routes such as codes of practice rather than the Employment Rights Bill, the government stated that they expect to begin consulting on these reforms in 2025, which means the majority of reforms will not come into effect until 2026.

Here is a breakdown of what this soon may mean for areas of employment law.

1. Trade Union Rights:

(Date to be confirmed)

A proposal to amend the rules to make it easier for unions to be recognised and gain access to the workplace. The Bill will also introduce a new duty on employers to inform workers of their rights to join a trade union.

To repeal Acts that have imposed additional striking restrictions and to make it easier. ​

2. Unfair Dismissal:

(Date to be confirmed)

A proposal to remove the qualifying period (2 years) for employees to claim unfair dismissal. The government has said that the use of a statutory probation period is likely to be set at 9 months (subject to consultation), but it is currently unclear how this will work with the ACAS code, contractual probation periods, and the processes surrounding this. The government has stated this won’t happen until Autumn 2026 at the earliest.

In addition to this it is suggested that the timeframe to claim unfair dismissal will be extended from 3 months to 6 months.

The practicalities of the proposed change may mean that employers need to ensure closer management or use experts for:

•      Recruitment processes

•          Induction periods

•          Clear objectives

•          Updates to employee handbooks

•          Review of employment contracts

•          Reviews of probation and performance management processes

3. Sick Pay:

(Date to be confirmed)

A proposal to remove the waiting period (3 days) for statutory sick pay.

To remove the lower earnings limit banding.

4. Fire and rehire:

(Date to be confirmed)

A proposal to further restrict fire and rehire to change contracts of employment, those dismissals will be treated as automatically unfair unless the employer can show evidence of financial difficulties and are able to demonstrate that the need to change contractual terms was unavoidable.

5. Zero-hour contracts:

(Date to be confirmed)

Zero-hour workers with a ‘low’ number of guaranteed hours, who regularly work more than those hours are to be given the right to move to a guaranteed hours contract which reflects the hours they regularly work. The length of the qualifying period will be set out in regulations.

Zero-hour workers are also to be given the right to reasonable notice of changes to shifts or working hours. They will also have the right to compensation that is ‘proportionate’ to the notice given for any cancelled or curtailed shifts.

6. Right to switch off:

(Date to be confirmed)

A proposal to introduce the right for employees to ‘switch off’ and not be contacted by their employer outside of normal working hours. It’s thought this may be introduced through a code of practice similar to Ireland’. If it is introduced as a code of practice this could attract a tribunal payment uplift for non-compliance with the code (similar to the ACAS code of conduct). Although currently excessive contact may fall under a harassment claim.

7. National Living wage:

(Date to be confirmed)

Update the national living wage to account for the cost of living and remove the lower age bracket (18-20). All increases to the national minimum wage happen in early April, so it is expected to be in place for April 2025. However, it is anticipated that the age bracket will be removed over time by closing the gap in the minimum wage to the other brackets.

8. Flexible working:

(Date to be confirmed)

A proposal to make flexible working a default day-one right (apart from when it is not reasonably feasible). This is outside of the changes to flexible working request rules that came into effect in April this year. What is considered reasonably feasible is still unclear but may follow the same 8 statutory reasons to decline a flexible working request. A positive first step for preparing your business for this is ensuring conversations during recruitment processes reflect flexible opportunities, needs, and expectations. Also, review your employee handbook/contracts.

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9. Ethnicity pay gaps:

(Date to be confirmed)

Making reporting compulsory for employers with at least 250 employees. It is anticipated that guidance will follow gender pay gap reporting rules. A first step towards being prepared for this is considering the data you already hold and taking steps to prepare for producing reports, identifying any areas that need immediate action.

This will form an overall requirement for an Equality action plan

10. Disability pay gaps:

(Date to be confirmed)

Making reporting compulsory for employers with at least 250 employees. It is anticipated that guidance will follow gender pay gap reporting rules.

This will form an overall requirement for an Equality action plan

11. Gender pay gaps:

(Date to be confirmed)

Enforcing the publication of the action plans to address inequalities and to include outsourced individuals in reporting.

This will form an overall requirement for an Equality action plan

12. Race equality:

(Date to be confirmed)

Introducing the right to make equal pay claims to black, Asian and minority ethnics, and disabled workers. The act will likely follow a similar format to the existing Equal Pay Act.

This will form an overall requirement for an Equality action plan

13. Menopause action plans:

(Date to be confirmed)

Requirement for employers with 250+ employees to publish their menopause action plans.

This will form an overall requirement for an Equality action plan.

14. Maternity and family leave returners:

(Date to be confirmed)

Making it unlawful to dismiss a woman who has had a baby for six months after she returns to work (with some exceptions). Expanding existing powers in relation to adoption, shared parental, neonatal, paternity and bereaved partners leave to enable regulation of dismissal in the period after the person returns to work.

​15. Parental leave:

(Date to be confirmed)

Making parental leave a day-one right (removing the one-year service requirement).

16. Protection from harassment:

(Date to be confirmed)

Introducing a new provision requiring employers to not permit harassment from a third party (such as a client or customer).

17. Sexual harassment:

(Date to be confirmed)

A further amendment to the Workers Protection (Amendment of Equality Act 2010 Act) 2023, requiring employers to take all reasonable steps to prevent sexual harassment

18. Bereavement:

(Date to be confirmed)

Introduction of a day-one right to at least one week of bereavement leave for employees. Details of the relationship to the employee have yet to be confirmed.

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If you would like help, advice or training on any of the employment law changes outlined in this blog please contact charlotteh@weareaspire.com or help with your recruitment please get in touch.

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Information correct as of 10th October 2024

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This information is provided as a guide only and legal advice should be sought before implementing. Aspire takes no responsibility for the application of any information related to this guide.