The Employment Rights Bill, which includes day one rights for sick pay and a ban on exploitative zero hours contracts, had been held by Tory and Lib Dems peers in the Lords
A massive boost to workers’ rights is set to become law after the House of Lords finally ended their stand-off over the plans.
The Employment Rights Bill, which includes day one rights for sick pay and a ban on exploitative zero hours contracts, had been held by Tory and Lib Dems peers. But on Tuesday the upper chamber passed the legislation – paving the way for royal assent and protections for workers expected to come into force from April.
Keir Starmer responded: “We did it. We have just introduced the biggest upgrade to workers’ rights in a generation. Today our plans passed through Parliament, and will soon become law. This is a major victory for working people in every part of the country.”
Former Deputy PM Angela Rayner, who spearheaded the landmark plan in government, said: “The biggest boost to rights at work in a generation. A historic achievement for this Labour government.” Business Secretary Peter Kyle said the legislation will “drag Britain’s outdated employment laws into the 21st century and offer dignity and respect to millions more in the workplace”.
Among the measures included in the Bill are an end to ‘fire and rehire’ practices which allow bosses to sack employees and hire them back on worse terms. It will end “exploitative zero hours contracts” by introducing rights to guaranteed hours, reasonable notice of shifts and payments for short-notice cancellation.
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Tory anti-strike laws will be repealed as part of the measures. There will also be a new right for unpaid bereavement law including pregnancy loss which the government says will allow workers to take leave to grieve.
TUC general secretary Paul Nowak said workers would enjoy better security, pay and conditions as a result of the Bill passing both the Commons and Lords. He said: “This is an historic day and early Christmas present for working people across the country, and the trade unions who represent them.
“It’s now vital that workers start feeling the benefits of this legislation in their lives as soon as possible. That means the legislation must be implemented in full, and at speed – with watertight secondary legislation to ensure there are no loopholes for bad bosses to exploit.”
Unison general secretary Christina McAnea argued good employers “have nothing to fear” from the legislation. She said: “This is the biggest improvement to employment rights in a generation and can’t come soon enough.
“For far too long, the balance of power has been tipped away from working people. These measures go some way to shifting the dial the other way. Unison was a key architect of this Bill and I’m proud of the role the union has played in shaping legislation that’ll now improve the lives of millions of people.
“Good employers have nothing to fear from this Bill, but unscrupulous ones should know the days of exploiting loopholes and denying people their rights are coming to an end.”
The passage of the Bill comes amid new research showing workers appear to be increasingly turning to insecure jobs including delivery services to make ends meet. Research by the Demos think-tank and Joseph Rowntree Foundation said the roles can involve uncertain hours, unpredictable pay and intense emotional labour.
Analysis over 30,000 posts online on sites including those dedicated to financial support also shows some worry about a “lack of a financial safety net”. Official figures showed Britain’s unemployment rate rose to 5.1% in three months to October – the highest rate since 2016 outside the Covid crisis era.
But researchers said: “Our evidence suggests the situation may be worse for working people than even these figures.” The report adds: “In the midst of redundancies, a slowdown in the job market, and a continued cost of living crisis, we have found that people are increasingly turning to precarious and insecure forms of work to make ends meet.
“These roles can involve uncertain hours, unpredictable pay, draining physical exertion, and intense emotional labour.”
The researchers are now urging the government to track the number of non-employee workers – often on casual contracts – known as “Limb workers” as part of official statistics. It also calls on ministers to “explore ways of extending access to parental leave and pay” for these insecure workers.
Polly Curtis, CEO at Demos said: “This research adds to a growing pool of evidence that financially vulnerable people are not getting the help they need in Britain today. The latest employment figures tell a grave enough story, but we would urge policy-makers to give more consideration to those whose story isn’t told by these figures.”