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Labour is set to introduce a new Employment Bill with the aim of providing the biggest uplift in workers’ rights in a generation. The legislation is a key election promise by the party leader Keir Starmer, in an effort to strike a balance between being pro-worker and pro-business. The Bill is expected to run to 150 pages, with consultations continuing on some of its key components. The focus is on delivering new rights for workers – including sick pay, parental leave, and the right to claim unfair dismissal – with the aim of achieving a rebalancing of power between employer and employee.
However, the commitment to workers’ rights is not without controversy. Small business owners, in particular, are concerned about the difficulty of coping with new regulations and the risk of employing new workers, which could impact growth. Many such measures are not expected to be introduced swiftly and will be handled through secondary legislation, even beyond the Bill’s passing into law in June or July 2022. Furthermore, new rights to challenge unfair dismissal will not be in effect until 2026, adding to concerns that the proposed legislation’s impact may be significantly delayed.
Other key areas of contention include the proposal to ban zero-hours contracts and the relaxation of regulations on the practice of “fire and rehire.” Business groups have called instead for a “right to request” such contracts and claim that new restrictions could make them unviable. The union Unite has also expressed its dissatisfaction, arguing that the legislation has fallen short of its ambition to make work pay, and that the word “exploitative” could be used as a loophole by some companies to continue unjust business practices.
Labour’s Employment Bill is a significant step forward in improving the rights of workers and achieving a rebalancing of power between employer and employee. However, with ongoing debates, consultations, and the potential for delays, it remains to be seen whether the proposed legislation will achieve its intended goal of creating a fairer, more equitable workplace for workers
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