The government published the roadmap for implementing the employment rights bill, setting out the timetable for delivering what it claims will be the most significant upgrade to worker protections in decades.
After a deluge of warnings from the industry, plans to hand new employees additional rights from day one, making flexible working the default and ending ‘exploitative’ zero-hours contracts will not be implemented until 2027 – to give employers time to adjust while the government continues consultations. Industry bodies and business owners warned that the three measures would pose a major barrier to firms’ prospects, inhibit growth and dent living standards.
Proposals to make staff eligible for statutory sick pay from day one of their illness, will be brought in, in April next year. At the same time, the lower earnings limit and waiting period for statutory sick pay will be abolished, extending coverage to more than 1.3 million low-paid workers. The government will also introduce legal protection for workers who take part in industrial action, making it unlawful for employers to dismiss staff for striking.
With just nine months to prepare for changes to the statutory sick pay regime, including removing the lower earnings limit and ending the three-day waiting period, the changes will prove challenging for businesses – many of whom are already struggling with rising employment costs following increases to the national living wage and employers’ national insurance contributions.
Responding to the Government’s Roadmap for the Employment Rights Bill, Helen Dickinson, Chief Executive of the British Retail Consortium, said:
“We welcome the publication of the Roadmap, particularly the clarity it provides around timescales for consulting on and implementing various policies within the Employment Rights Bill. It is critical this includes quality engagement with the large employing sectors where implementation will have significant consequences. Retailers remain concerned about some of the proposals. The industry has lost 350,000 jobs since 2015. Currently provisions around Guaranteed Hours in particular could threaten the availability of local flexible part-time jobs. 1.5 million of the 3 million people in retail currently work part-time, which allows them to work as much or as little as they need, and to balance work with their other life commitments.
“We look forward to engaging with Government and other stakeholders to ensure effective solutions are designed to address these concerns so the Bill tackles the unscrupulous employers, without penalising responsible ones and actually delivers benefits for retail employees.”
The Employment Rights Bill is nearing the end of its journey through parliament and is expected to pass before the summer recess or early September.
