Ban on ‘exploitative' zero-hours contracts to come into effect in 2027
Ministers have opted for a 'phased' rollout of the changes, which were a Labour manifesto promise, in order to balance safeguards for employees with 'the practical realities' of running a company.
Prime Minister Sir Keir Starmer has hailed the Government's flagship Employment Rights Bill, which is making its way through Parliament, as 'the single biggest upgrade to workers' rights in a generation'.
Its measures include bolstered rights to parental leave, a crackdown on 'fire and rehire' practices and the removal of the lower earnings limit and waiting period for statutory sick pay.
Under plans outlined in a 'roadmap' published by the Government on Tuesday, some changes will be implemented immediately after the Bill receives royal assent but others will take two years to come into effect.
After the legislation has passed, Conservative-era rules restricting industrial action in sectors including health and education will be abolished as the Strikes (Minimum Service Levels) Act 2023 will be instantly appealed.
New protections against dismissal for striking workers will also come into effect after the Bill makes it onto the statute books.
Changes to sick pay, protections for whistleblowers, 'day-one' paternity leave and unpaid parental leave and reforms to strengthen financial security for staff facing mass redundancies will take effect in April 2026.
In October 2026, measures to end 'unscrupulous' fire and rehire practices, tightened tipping laws aimed at ensuring workers take home a fair proportion of gratuity will be implemented, the Government said.
Measures to strengthen right of access for trade unions and protect employees from harassment are now also due to come into effect next October under the roadmap.
Finally in 2027, the Government says it will have implemented:
– Full gender pay gap and menopause action plans, which aim to support women in the workplace and will be introduced on a voluntary basis from next April
– Bereavement leave
– A ban on the 'exploitative' use of zero-hours contracts
– 'Day-one' rights to protection against unfair dismissal
– Improved access to flexible working, for example by allowing people to work from home
– Strengthened protections against dismissal for pregnant women and new mothers.
Deputy Prime Minister Angela Rayner said the Government was 'working fast' to deliver the reforms, with some due to kick in 'within months'.
Business Secretary Jonathan Reynolds said: 'By phasing implementation, our collaborative approach balances meaningful worker protections with the practical realities of running a successful business, creating more productive workplaces where both employees and employers can thrive.'
The Department for Business and Trade said that providing a 'structured timeline' would allow stakeholders to plan their time and resources to ensure they are ready for the changes.
The Government will continue to consult with 'business groups, employers, workers and trade unions' in phases on the detail of the measures, beginning this summer and continuing into the new year, it said.
Hospitality and recruitment bodies welcomed the time to prepare, while union leaders urged employers 'not to wait' for the law change before implementing the reforms.
TUC general secretary Paul Nowak said: 'It's welcome that workers will start to benefit from these long overdue changes from later this year – but this timetable must be a backstop.
'We need to see these new rights in action as soon as possible. Decent employers don't need to wait for the law to change.
'They should be working with staff and unions right now to introduce these changes as quickly as possible.'
GMB general secretary Gary Smith said: 'GMB members now know when these much-needed improvements will happen – we urge good employers not to wait; do the right thing and make these changes a reality today.'
Kate Nicholls, chief executive of UKHospitality, said: 'Clear and precise timelines on when aspects of this legislation, and the processes to deliver them, will come into force is essential, and it was important that the Government embark on providing clarity.
'There are substantial changes for businesses in the Employment Rights Bill and it's right that the Government is using the appropriate implementation periods for the most complex issues for hospitality, in order to get the details right for both businesses and workers.'
Neil Carberry, Recruitment and Employment Confederation (REC) chief executive, said: 'This clear timeline on the Employment Rights Bill gives room for full and frank consultation on how the new rules will be structured. It also gives businesses important time to plan.
'Now we have the roadmap, ongoing and meaningful engagement will be critical to ensuring new regulations allow the flexibility workers and companies value to remain.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Glasgow Times
14 minutes ago
- Glasgow Times
Scottish government minister says UK welfare reforms should be abandoned
Shirley-Anne Somerville was commenting after the Universal Credit and Personal Independence Payment Bill passed its first legislative hurdle at Westminster. Ahead of the crunch vote, Sir Keir Starmer ditched a mainstay of his welfare reform agenda as he battled to get the draft laws through the House of Commons. In a major concession as MPs prepared to vote, the Prime Minister shelved plans to restrict eligibility for the personal independence payment (Pip), with any changes now only coming after a review of the benefit. Under Scotland's devolved social security system, Pip is currently being replaced by the Adult Disability Payment. Shirley-Anne Somerville (Jane Barlow/PA) Reacting to events at Westminster, Ms Somerville reiterated the Scottish Government's pledge not to cut that benefit. 'Despite the panicked, last-minute concessions they have made, if the UK Government presses ahead with cuts to disability support they will plunge more people into poverty,' said the SNP MSP. 'That is unconscionable. 'Their approach also risks creating a deeply unfair two-tier system, pushing the impact of cuts onto future applicants for disability benefits. 'The UK Government needs to stop balancing the books on the backs of some of the most vulnerable people in society. 'They need to properly listen to the overwhelming criticism their proposals have generated and do the right thing by disabled people by abandoning this bill entirely. 'I want to reassure disabled people in Scotland, that the Scottish Government will not cut Scotland's Adult Disability Payment, we will not let disabled people down as the UK Government has done.' The decision to remove the Pip changes from the Bill was announced just 90 minutes before MPs voted. The legislation passed by 335 votes to 260, majority 75. Despite the late concession, there were 49 Labour rebels, the largest revolt so far of Sir Keir's premiership.
The Independent
14 minutes ago
- The Independent
Did my MP vote against Starmer's plan to cut benefits?
Sir Keir Starmer 's welfare bill has managed to scrape past its second reading as he fended off what is believed to be the most significant rebellion since he became prime minister a year ago. The bill passed its second reading by 335 ayes to 260 noes, a majority of 75, with 49 Labour MPs voting against the welfare cuts which have caused controversy. Disability minister Sir Stephen Timms announced a last-ditch concession that plans to restrict eligibility for personal independence payments (PIP) – which had been the central pillar of the government's reforms – would not take place until after a review of the benefit had concluded. The government had initially planned to change the eligibility criteria for disability benefits for all new claimants from November 2026 but now the new system will not come into force until the review has concluded. It comes just days after the government watered down the legislation for the first time on Thursday, excluding all existing claimants from changes to PIP in a chaotic U-turn. Sir Keir's welfare bill has continuously caused controversy as a growing rebel camp, led at the time by Dame Meg Hillier, putting forward an initial amendment which forced the government to U-turn from its initial plans. While she voted to back the legislation, almost 50 Labour MPs expressed their discontent with the bill still. One key voice in the 'noes' was MP Ms Maria Tidball, born with a congenital disability affecting all four limbs, who broke down in tears as she delivered an impassioned speech criticising the welfare cuts. Another key rebel, Rachel Maskell, said disabled people will have been worried watching the debate. The MP for York Central said: 'I'm obviously really sad that the Bill went through but I think my greatest sadness is that disabled people will have been looking on and seeing Parliament debating their futures, and I think they'll be incredibly distressed when they see the way that Parliament was today. 'That's the thing that tugs at me, because I think ultimately we've got huge responsibility to disabled people and they weren't served well by the department today.' Sir Stephen Timms later said, in response to concerns over a two tier system, that it was 'completely normal in social security.' 'PIP replaced DLA (disability living allowance) in 2013 but half a million adults are still on DLA today. That doesn't cause problems. Parallel running is normal, and actually it's often the fairest way to make a major change.' Work and pensions secretary Liz Kendall said welfare reform was particularly 'difficult' for Labour because the party cared 'passionately' about the subject. Asked what the main lessons were from the backbench rebellion over proposed cuts, she told broadcasters: 'Welfare reform is always really difficult, perhaps especially for Labour governments. 'It's something we care passionately about.'
Powys County Times
15 minutes ago
- Powys County Times
The welfare reform vote: All you need to know
MPs have backed a Government proposal to reform welfare payments for sick and disabled people, but only after significant concessions saw much of Sir Keir Starmer's plan abandoned. Below, the PA news agency looks at what happened, what it means for personal independence payment (Pip) and universal credit, and what might come next. – What have MPs agreed to? MPs voted on Tuesday to allow the Government's Universal Credit and Personal Independence Payment Bill to advance to the next stage in becoming law. Some 126 Labour backbenchers had previously threatened to vote against the legislation, enough to block its passage through the Commons, but in the end only 49 did so. But ministers were forced to offer a series of concessions to persuade the rebels to back the Government. – What concessions did the Government make? Last week, Work and Pensions Secretary Liz Kendall announced a partial U-turn aimed at heading off the rebellion that included three key points. Firstly, changes to Pip eligibility would only come into effect in November 2026, and anyone claiming the benefit before that date would not be subject to the new rules, instead of imposing the changes on everyone. Secondly, people claiming the health element of universal credit, and new claimants with the most severe conditions, would see their incomes protected in real terms. Thirdly, disabilities minister Sir Stephen Timms would conduct a review of the Pip assessment, 'co-produced' with disabled people. But during Tuesday's debate, Sir Stephen offered a further concession, saying any changes to Pip eligibility would only be introduced after his review had concluded, further delaying them. – What do the concessions mean for the Government's proposals? The decision to push back Pip changes to an unspecified date, and leave uncertain the details of what those changes will be, removes a major part of the Government's reform plans. The proposed changes to universal credit remain, raising the standard allowance while halving the health element for most new claimants from April 2026. But the concessions will also pose a problem for Chancellor Rachel Reeves, who will need to find extra money now the expected savings from welfare reform are no longer expected to materialise. Indeed, the Resolution Foundation think tank suggested the concessions meant there would now be no 'net savings' from the reform by 2029/30, a key year for Ms Reeves' fiscal targets. – What happens next? The Government has pledged to make the necessary amendments to remove the Pip changes from the Bill when it returns to the Commons next week. It is then likely to continue through Parliament, becoming law after it has been approved by both MPs and peers. But wider questions remain for the Government. Not only does Ms Reeves face a fiscal headache, but the Prime Minister could face a political one too as he seeks to repair fractured relations with his backbenchers. And uncertainty will continue to surround the Government's plans for welfare reform.
