How The UK Government Is Helping With Employment Reform

Employment Rights Minister Justin Madders told world leaders in Geneva that the UK’s long running productivity hold ups begins with insecure work. He said workers spend and innovate when they have reliable hours and decent pay.

He explained that the Make Work Pay blueprint, part of the Plan for Change, will “put money back into pockets” and lift living standards. A better wage packet, he added, gives shops and small businesses the confidence to hire and invest.

The government believes stronger job security can narrow the output shortfall with France and Germany. They refer to those countries’ stronger rights and higher productivity as proof that protection and growth work together.

 

What Changes Will End Insecure Contracts?

 

The Employment Rights Bill promises a day 1 right to contest unfair dismissal, taking away the current 2-year wait.

Unfair zero hours deals will disappear as guaranteed hours, clear notice of working hours and pay for late cancellations become law.

Agency staff gain the same protection, closing holes that once left many with patchy earnings and irregular schedules. The draft also cracks down on “fire and rehire” by treating dismissals that force workers onto worse terms as automatically unfair unless a company genuinely has no alternative.

 

How Will Fair Pay Rules Improve Wages?

 

A government factsheet confirms that Statutory Sick Pay will start on day 1 of illness and cover every worker, whatever their wage. A national School Support Staff Negotiating Body will return to set pay, handing the lowest paid in classrooms a clearer ladder upwards.

Fair Pay Agreements across adult social care in England, Scotland and Wales will fix wage floors and conditions in a sector that employs about 1.6 million people.

The Bill lets workers keep tips through a rule that forces bosses to consult staff when writing tipping policies and payslips.

Government estimates show costs for businesses may be under 0.4% of the national wage bill, while extra wellbeing is valued in billions each year.

 

 

What Extra Help Will Families And Unions Get?

 

Parents will gain day 1 access to Paternity Leave and Unpaid Parental Leave, making juggling work and care easier.

Fathers may take their 2 weeks after Shared Parental Leave, solving the timing clash many families face.

A new unpaid bereavement right will give staff space to grieve, and pregnant employees will carry stronger protection from dismissal for 6 months after returning to work.

Workers will also have a beefed-up right to request flexible working. Employers must explain any refusal and prove the decision is reasonable.

On collective rights, the Bill scraps most of the 2016 Trade Union Act and the 2023 minimum service laws, making legal strikes simpler to organise.

Unions will gain easier digital access to staff, faster recognition, and new protections against blacklisting, while staff who join lawful action gain cover against penalties.

 

When Will Workers Notice The Difference?

 

Parliament still has to pass the legislation, but ministers have set out a timeline.

The Department for Business and Trade will open consultations on most reforms later this year, inviting views from business groups and unions.

Delegated powers in the Bill mean finer details will appear in regulations and codes of practice after Royal Assent.

Ministers plan to bring in most measures no earlier than 2026, giving employers time to adapt and workers time to grasp their new rights.

Where big changes need longer lead-in periods, the department says extra breathing space will be granted and clear guidance published.

Enforcement will sit with a new Fair Work Agency, which will inspect, fine and take tribunal cases over pay, holiday and other breaches.

Nearly 75% of the public back the reforms, according to government polling. Justin Madders told delegates that this domestic support, matched by interest overseas, shows Britain can rise up the productivity rankings through confident workers and better pay.

Madders said, “After years of playing catch up with our closest neighbours, our Plan for Change will see tens of millions of workers across the UK finally get the boost in living standards and protections that their hard work deserves.

“Whether it be day one protections against unfair dismissal, the right to guaranteed hours or making flexible working the default, the Employment Rights Bill is putting money straight back into the pockets of working people.

“We want to make the UK the world’s best place to work, and delivering real change for workers will help solve the UK’s productivity puzzle and get our economy growing once again.”