New protections for workers closer as MPs back Employment Rights Bill

A major step was taken towards resolving key issues in the labour market last night after MPs voted to approve the government’s Employment Rights Bill

Significant measures in the Bill include:

  • The right to guaranteed hours for zero hours workers.
  • Protection from unfair dismissal from day one in the job.
  • Sick pay for all workers, from the first day of absence
  • The right for unions to access workplaces to speak to workers.
  • The establishment of a state Fair Work Agency to bring together existing bodies to better enforce the law.

The common sense reforms take a step towards resolving key issues for many workers, such as being parked on zero hours contracts for months or years on end. Or workers being afraid to take a better job because currently they can be dismissed for no reason within the first two years.

Such steps take the UK closer to equivalent countries in the strength of its employment law.

They could also provide a £13 billion annual boost to the UK’s lacklustre economy.

After consultations with businesses, trade unions and the wider public at the end of last year, the government tabled a number of other notable changes when the Bill returned to parliament this week.

Here are some of the key ones:

Zero hours contracts

Agency workers will have to be offered guaranteed hours contracts reflecting their normal hours, based on a 12-week reference period. This closes a loophole that could have allowed employers to switch from employing zero hours workers directly to hiring them via an agency.

There is a provision that new rights to guaranteed hours, reasonable notice of a shift and payment for cancelled, moved and curtailed shifts can be changed if workers and an employer agree alternative arrangements in a collective agreement. This means arrangements can be tailored to suit particular workplaces.

Sick pay

The government has confirmed that workers will be entitled to receive minimum sick pay of 80 per cent of their normal wages or statutory sick pay, whichever is the lower. This largely affects workers who are not currently entitled to statutory sick pay. The government had modelled a rate as low as 60 per cent.

Union access

The right for a trade union to access a workplace to support workers and talk to them about joining has been extended to a digital right of access as well. This will be especially important where workers work outside an office and are better contacted by digital means such as email or intranet posts.

Unions have been given stronger rights to access workplaces when workers are seeking recognition. Employers will be barred from carrying unfair practices to undermine unions from the start of the process.

Trade union rights

Current law deliberately ties unions up in red tape, which gives employers great opportunities to challenge strike action in the courts on technicalities. This will reduce somewhat as the government reduces the amount of information unions must disclose to employers when they launch a strike ballot.

Meanwhile, notice for strike action will be cut from 14 days currently to ten days. And the mandate for taking strike action after a vote in favour doubled to 12 months.

Industrial action is a last resort for trade union members. After all, workers usually suffer a significant loss of income. But a vote for action can give real weight to union negotiations and kickstart talks when progress has stalled.

These changes mean some of the artificial barriers to action have been removed.

Work still to do

While the Employment Rights Bill will take important steps towards a fairer economy, there are further reforms required. These include:

  • Some workers could receive less sick pay under these changes than they currently receive. This should be remedied and a review conducted to improve the paltry headline rate of SSP.
  • A huge amount of detail will be set out in subsequent regulations laid by the government. It is crucial that new “initial periods of employment” during a worker’s first nine months in the job provide sufficient protection from unfair sacking, including a route to take a case to the employment tribunal. And that loopholes are not opened up stopping workers getting guaranteed hours contracts.
  • The Bill makes it easier for workers to gain recognition for their trade union. But leaves in place a law requiring a three-year gap between recognition attempts, benefiting union-busting employers. This gap should be significantly reduced.
  • The government will delay the repeal of a Tory measure that requires a 50 per cent turnout for a strike law to be valid until after it has introduced electronic balloting.
  • The government has pledged to reform current employment status rules that govern whether someone is self-employed, a worker with some rights, or an employee with full rights. An overhaul is needed to stop exploitative employers attempting to deny workers their protections.

The passage of the Employment Rights Bill represents another significant step forward for working people.

The recent amendments further strengthen government efforts to crack down on worker exploitation and strengthen their voice in the workplace. 

TUC: Work-related ill-health is costing the UK economy over £400 million a week

  • New analysis shows that number of days lost due to work-related ill-health has rocketed by a third since 2010 to 34 million days 
  • Work-related ill-health reduced economic output by £22bn in 2023
  • TUC says findings highlight the importance of driving up job quality in the UK and stronger rights at work ahead of Employment Rights Bill returning 

Work-related ill-health is costing the UK economy over £415 million a week, according to new TUC analysis published on Monday. 

The analysis of official statistics shows that the number of days lost due to health conditions – including stress, depression and anxiety – has shot up by a third since 2010. 

In 2023 to 2024 (the latest year for which figures are available) 34 million working days were lost to work-related ill-health – compared to 22 million in 2010. 

The TUC says the findings – which are published as the Employment Rights Bill returns to parliament – show the “urgent importance” of improving the quality of work in the UK. 

In 2022 to 2023 (the latest year for which figures are available) work-related ill-health is estimated to have reduced economic output by £21.6bn. 

Boom in insecure work 

The TUC says the rise in days lost to work-related ill health has coincided with a huge boom in insecure work. 

The union body estimates that over a similar period (2011-2023) the number of people in precarious employment also rocketed by a third to over 4 million. 

A separate report out this week from the Commission for Healthier Working Lives suggests that poor quality work can harm employee health. It states:

“Most health conditions develop outside work, but for a significant number of people, work itself is the cause. Persistent insecurity, workplace discrimination and extreme demands take a serious toll on health. In some cases, poor-quality work is even worse for health than being unemployed.” 

The TUC says driving up employment standards will help improve staff well-being, health and productivity. It will also ensure that more people with disabilities or health conditions can stay in work.  

This view was backed up by polling last autumn which revealed that:  

  • Three-quarters (75 per cent) of managers think that strengthened employment rights will improve employee health, compared to just 4 per cent who disagree  
  • Seven in 10 (74 per cent) believe that strengthening employment rights will improve workforce retention, compared to just 6 per cent who do not.   

Employment Rights Bill back in parliament 

The government’s Employment Rights Bill returned to parliament this week for its report stage. The Bill will deliver “common-sense reforms” which bring the UK closer to the European mainstream on workers’ rights, the union body says. 

The TUC says the legislation will help to deliver better quality work in every corner of the country by cracking down on insecure work and banning exploitative zero-hours contracts. 

TUC general secretary Paul Nowak said: ”Improving the quality of work in Britain is good for workers and our economy. Work related ill-health is costing us hundreds of millions each week – that’s billions of pounds down the drain every year. 

”That’s why the government’s Employment Rights Bill is so important. Cracking down on exploitative practices like zero-hours contracts and giving people more security will boost workers’ health, well-being and productivity. It will also help more people stay in work.  

“We need to turn the corner on Britain’s low-rights, low-pay economic model that has been tested to destruction over the last 14 years. Giving working people more control and predictability over their lives will help create a happier, healthier and more robust workforce.” 

STUC Women’s Conference 2024: Usdaw seeks action on women’s under-representation and support for carers

Retail trade union Usdaw has a delegation of members, reps and officials attending the annual Scottish Trade Union Congress (STUC) Women’s Conference in Glasgow on 23 and 24 October.

Usdaw is seeking to address the under-representation of women in policy and decision making, along with more support for women carers.

Ruth Cross – Usdaw equalities officer says: “Women remain under-represented in political spaces, in peace processes and in all of Scotland’s democratic bodies.

“There are multiple barriers to women accessing politics, particularly Black women, disabled women and LGBT+ women. Women make up 52% of the Scottish population and should be equally represented in our democratic bodies and our movement, but gender parity is far from becoming a reality. Women hold 37% of seats in the Scottish Parliament, 24% of seats in local council chambers and only 36% of public board places. Women are under-represented in politics.

“There are welcome examples of positive progress for women’s representation in Scotland in recent years, but we need to guard against regression and take bold action to make sure progress is sustained in the future. Sexism, misogyny and violence violate women’s right to participate equally in political and public life. Attacks on women in public life are also increasing and more women are withdrawing from public life as a result.

“Evidence shows women bring lived experience to political decision making, resulting in decisions that address violence, human rights abuses and promote more equal access to resources and services. Increased representation for women in politics has a positive impact on both gender equality issues and social policy more broadly. We need to fully integrate women into all our political and union structures and address our specific policy concerns.

“Usdaw is asking conference delegates to support our call on the STUC Women’s Committee to press the STUC and Scottish Government, local authorities, public bodies and political parties to take all steps to create an inclusive and supportive environment for all women and to continue to be vigilant about ensuring women are accurately represented in every aspect of public and political life.”

Paddy Lillis – Usdaw general secretary says: “There is evidence that providing care impacts on almost every aspect of women’s daily lives, decision making and financial circumstances.

“In Scotland, over half of women carers have said that their physical health has been negatively affected as a result of their caring role and a shocking 81% feel stressed or anxious because of their role. Yet their care responsibilities and the effort required to make themselves available to do their jobs is frequently invisible to or ignored by employers.

“The recent scandal surrounding the recovery of overpaid Carer’s Allowance has brought to light the systemic way in which social security is failing carers, although we are pleased that our new Labour Government has moved swiftly by setting up a review to address issues faced by carers.

“The problems with Carer’s Allowance are replicated in the relatively new Carer Payment which is being rolled out in Scotland.  “As it currently stands, Carer’s Allowance is deepening women’s poverty and contributing to their ongoing inequality. The processes currently in place to rectify overpayments cause lasting harm and distress.

“Due to this lack of recognition and support, women carers are often compelled to reduce hours of work, take unpaid or sick leave or give up work altogether. This has a knock-on effect on income, resulting in a higher poverty rate for carers than those without a caring role.”

Usdaw is calling on the Scottish Government to:

  • Promote flexible and paid employment rights that explicitly value the contribution of unpaid carers, no matter what kind of job or contract they have.
  • Improve access to quality and reliable social care.
  • Timetable urgent reform to eligibility for Carer Support Payment that does not restrict carers’ employment decisions.

Westminster Government: How we’re ‘fixing the foundations’

We want to create wealth everywhere, but first we must fix the foundations of our country.

In the first few weeks of this Government, an audit found a £22 billion black hole in the public finances. It means we’ve had to take tough decisions, like means-testing the Winter Fuel Payment. Our Budget in October will be difficult.

But we have already taken action to improve the lives of working people in every corner of the country, from unlocking planning decisions to help build 1.5 million new homes to setting up Great British Energy, to create good jobs and provide clean energy to cut people’s bills in the long term.

Here are some of the things we are doing to fix the foundations of this country.

Setting up a new National Wealth Fund 

Growth is the number one priority of this government. That’s why we set up the National Wealth Fund. 

It is a publicly owned investment fund that will help attract investment into our country, stabilise our economy and create wealth for future generations.  

It will help unlock private investment into the UK by directly investing in new and growing industries, and help create thousands of jobs in clean energy industries.  

Accelerating housing planning 

We’re overhauling our housing system to meet the needs of working people and put communities first.  

Our plan will include introducing mandatory planning targets to aim to deliver on our ambition to build 1.5 million new homes over the next five years.  

The new targets will boost housebuilding in areas most in need, to help more people buy their own homes, and help drive growth – making everyone in the country better off. 

Putting passengers first  We’ll put our rail system back on track with new laws to deliver for passengers.  

They will improve the railways by reforming rail franchising, establishing Great British Railways and bringing train operators into public ownership. 

Protecting taxpayer money 

We’ll introduce legislation that makes sure nobody can play fast and loose with public finances. 

A new Bill will strengthen the role of the Office of Budget Responsibility, meaning significant fiscal announcements must be properly scrutinised and that taxpayers’ money is respected. 

Protecting workers’ rights  

We’ll improve workers’ rights with new legislation – a significant step towards delivering this Government’s plan to make work pay. 

We will ban exploitative zero-hours contracts, end fire and rehire, and introduce basic employment rights from day one.  

And we’re changing the way the Minimum Wage is set so it keeps in line with the cost of living, in a move to put more money in working people’s pockets. 

Launching GB Energy  

Producing clean energy and creating good jobs will be our focus for the rest of the year. Great British Energy, a publicly owned, clean-energy company, will own, manage and operate clean power projects, such as wind farms, across the country.

 Great British Energy will be headquartered in Scotland and paid for by a windfall tax on oil and gas giants. It will invest clean power projects across the United Kingdom, such as wind farms, which are the cheapest forms of electricity generation to build and operate.  

This will help make our country energy independent, tackle climate change and save families money. And investing in clean domestic power will create jobs and build supply chains in every corner of the UK.

Better worker protections are coming

‘Opponents must stop swimming against the tide’

The UK’s long experiment with a low-rights, low-wage economy is drawing to an end, and employers need to recognise now is not the time for foot-dragging (writes TUC’s TIM SHARP). 

Rupert Soames, president of business lobby group the Confederation of British Industry (CBI), was this week driven to acknowledge that improved workers’ rights is “really good for people who are employed”. 

This matters because bolstering workers’ rights is central to the Labour Party’s New Deal for working people.  

This pledges sweeping but necessary changes including stamping out the exploitative use of zero hours contracts, ending the ability of employers to fire and rehire workers on lower wages, and scrapping the current wait for up to two years for basic workplace protections. 

Such reform is desperately needed. 

Rise in insecure work 

TUC analysis of official figures shows that by the end of 2022 there were around 3.9 million people in insecure employment, a rise of 23 per cent since the coalition took office – almost double the rise of 12 per cent in overall employment growth.  

As Soames, having recently spent eight years as chief executive of outsourcing giant Serco, will be well aware: insecure work disproportionately affects groups of workers who are already discriminated against in the workplace, such as Black and minority ethnic (BME) workers. 

Over half of those living in poverty are in working households – and this rises to three quarters of children living in poverty.

Even the current government promised 20 times to introduce an employment bill. But the pledge remains unfilled. 

Faltering economy 

Meanwhile, the flawed idea that weak workers’ rights means a stronger economy and higher productivity has been tested to destruction.  

As the Resolution Foundation has pointed out: “Labour productivity grew by just 0.4 per cent a year in the UK in the 12 years following the financial crisis, half the rate of the 25 richest OECD countries (0.9 per cent).” 

Moreover, things are getting worse not better. Economic growth is flatlining with the country teetering on the brink of recession. 

The relentless undermining of wages and incomes has repercussions on spending in the economy, with household consumption failing. 

This is why Richard Walker, boss of grocery chain Iceland, switched support to Labour citing concern about the impact of the rising cost of living on their customers. 

Higher pay and greater security are clearly in the interests of both workers and businesses, for they mean more spending and more revenues for business. 

Watering down 

Soames warned that “European model” of stronger worker rights, while benefiting those in work, is “really bad for people who are unemployed because companies are terrified to take them on”. 

This suggests some in business are oblivious to the events of the past decade or so.  

The Marmot review, for example, recognised that insecure and poor quality employment is associated with an increased risk of physical and mental health worsening. That in turn leads to absence due to illness, and worklessness.  

No wonder businesses continue to complain of staff shortages. 

Indeed his language is reminiscent of the apocalyptic and entirely inaccurate warnings that a national minimum wage would lead to two million more unemployed.  

The incoming Labour government in 1997 was right to disregard claims from the Right that the minimum wage would cost millions of jobs.  Now there is a wealth of evidence, over 25 years of the minimum wage, that it has protected the lowest paid with no employment effects at all. 

It should take unevidenced claims about the New Deal in the same spirit. 

Behind the times 

While some in the business lobby are dragging their heels, previous advocates of unconstrained free markets now advocate reform. 

The OECD’s 2018 Jobs Strategy finally put to bed its long standing celebration of flexibility and market fundamentalism.  

 “Countries with policies and institutions that promote job quality, job quantity and greater inclusiveness perform better than countries where the focus of policy is predominantly on enhancing (or preserving) market flexibility,” it said. 

In the UK, the Institute for Fiscal Studies warned that: “Higher earnings inequality, with low real earnings growth, and a very different labour market from 40 years ago have placed the world of work in a much more unequal and divisive place. To halt or reverse this trend requires significant attention be devoted to ways to restore and reinvigorate real earnings growth and to generate decent jobs with good career opportunities in an inclusive way”. 

Conclusions 

A radical and effective programme is long overdue both for workers – whether currently in employment, looking for work or will be joining the jobs market in future – and for the wider economy. 

As TUC general secretary Paul Nowak told the CBI conference last year: “Decent employers will recognise the promise of Labour’s economic reset and work with unions to boost productivity, skills and security at work.” 

Now is not the time for foot-dragging. The economy needs a major reboot and the opponents of change need to get out of the way. 

Scottish workers and employees will now receive the same minimum level of paid annual holiday leave

For those individuals with a permanent zero hours, causal or term time only contract, the recent landmark legal judgment made by the Supreme Court represents a positive step forward in terms of their employment rights. 

According to the ruling, all employees and workers in the UK will now receive the same minimum level of paid annual holiday leave, regardless of how many hours they work. The Supreme Court was asked to rule over whether their leave entitlement should be calculated proportionally as full-time employees or whether it should be calculated by ignoring the weeks they do not work.

It ruled that the amount of annual leave for workers and employees who have a permanent contract which is in force for the full year but who are employed for some weeks of the year should not have their holiday entitlement calculated on a pro-rata basis. This is a significant development for the 78,000 Scottish residents that are currently in employment on a zero-hours contract.

Tina Chander, Head of the Employment Law Team at Wright Hassall, said: “The Supreme Court ruling once again brings the topic of zero-hours contracts to the fore, as workers and employees are now entitled to a full year’s statutory holiday entitlement which is currently 5.6 weeks per annum.

“Generally speaking, zero-hours contracts are attractive to employers, employees and workers that prefer the flexibility to choose when they work, instead of having a strict full-time regime, which may not be wanted by either party.  

“If you have a zero-hours contract, your employer does not have to give you any minimum working hours, and you do not have to accept any work offered. That being said, you can still be classed as an employee or worker.

“There are some significant distinctions between employee and worker status. For example, if you are classed as a worker then you are entitled to national minimum wage, paid holiday, rest breaks, protection from discrimination and protection from whistleblowing.

“However if you are classed as an employee, you are also afforded  the legal protection to not be  unfairly dismissed and you are entitled to statutory redundancy pay, so it is vital that Scottish employers and employees familiarise themselves with existing contracts and rights, especially in light of this recent development.”

16,000 workplace opportunities secured through Young Person’s Guarantee

Over 600 employers sign up

More than 16,000 young people across Scotland have been offered workplace opportunities through the Young Person’s Guarantee.

Over 600 employers have signed up to the initiative which aims to connect 16-24-year-olds with an apprenticeship, work experience, volunteering, internships, enterprise opportunities and mentoring.

Up to £45 million is being invested in the Young Person’s Guarantee in 2022-23 as part of the ongoing commitment to support young people

Youth Employment Minister Jamie Hepburn met young people working for BAM Construction on the new £60 million North east hub health and care centre in Parkhead, Glasgow.

Mr Hepburn said: “It has been hugely encouraging to see the important role these young people are playing in the construction of this new health centre which will be a vital community asset in the east end of Glasgow for decades to come.

“I would like to thank BAM Construction, and all employers signed up to the Young Person’s Guarantee, for the opportunity they are helping to give our 16-24-year-olds. This will play a key part in our economic recovery.

“With results day just a couple of weeks away, it’s important for young people to realise there are a number routes into the workplace. 

“Our Developing Young Workforce (DYW) co-ordinators will continue working across secondary schools in Scotland to link people with local employers, while the introduction of the free bus pass and job grant are also aimed at helping young people into positive destinations.”

Sandy Begbie, Young Person’s Guarantee Implementation Group chair, said: “From the beginning of the Young Person’s Guarantee I’ve stressed the importance of young people being connected to all available opportunities.

“It is great to see how many employers of all shapes and sizes have demonstrated their support and belief in young people by committing to the Guarantee.

“As representatives of Scotland’s industry and employers it remains crucial we work together to communicate to young people that although their futures may still seem uncertain, opportunities are out there and continue to grow.”

The Scottish Government committed up to £45 million in the budget to support young people in Scotland towards employment, training and apprenticeships through the Young Person’s Guarantee,  other education, training, skills investment and through the jobs grant.

Young people and employers can find opportunities and support at:

 youngpersonsguarantee.scot 

Can your employer force you back into the office?

There have been reports of people being forced back to workplaces without proper consultation, even as Covid-19 cases remain high, or forced to stay at home due to money-saving office closures (writes TUC’s ALICE ARKWRIGHT). Employers should consult with unions to manage this period positively – rather than issuing directives.

So, what can you do if you feel like you’re being forced to stay at home or go back into the office?  

Talk to your colleagues

If your boss is asking you to return to the workplace or stay at home and you don’t feel comfortable, you should speak to other members and your union rep immediately – they may feel the same about the situation. 

If you raise the issue collectively with your employer, they’re much more likely to listen. Employers shouldn’t be imposing changes on anyone. You and your colleagues should clearly lay out what you want and why it’s beneficial for both you and your employer.  

There’s still limited access to childcare at the moment, so parents and carers may need specific arrangements. Your boss should be working with you and your workmates to understand this.  

And suggesting pay cuts for home workers, as we’ve heard in the media, is the last thing employers should be doing. People have shown huge flexibility during the pandemic and worked hard to keep the country going – now is not the time to be making threats.   

Brush up on health and safety 

There are lots of factors that your employer needs to think about at this time. Primarily, health and safety – is your workplace safe to be in and has your employer considered the mental health impact of returning to the workplace? 

This could include feelings of isolation with continued homeworking or anxiety about returning to the workplace. Our latest webinar provides all you need to know on health and safety at work since government restrictions were lifted.  

Know your rights 

You have certain rights when deciding where to work: 

  1. Employment contract 

Check your employment contract. You might have a “place of work” included and, it could be a breach of contact if your employer unilaterally imposes a change of location, without consent. This is important if your employer is saying you must work from home permanently.  

  1. Safety 

The virus hasn’t gone away, and workers will want to know what their employer is doing to keep them safe. It’s a legal requirement for bosses to carry out a workplace risk assessment. Employers must also carry out the actions that come from their risk assessment – this could include continuing with home working where possible.  

If you think there is a serious or imminent danger to you or your colleagues, you may have the right to leave work depending on the specific circumstances. The relevant law is Section 44 of the Employment Act 1996 and it covers all employees. More information on your health and safety rights on returning to work can be found here

And remember, your employer still has a duty to keep you safe when you’re working from home – see our guidance on risk assessments for homeworkers.

  1. Flexible working requests

Under current law, all employees have the right to request flexible working arrangements, this can include a request to change your location either permanently or for part of your working time. Any employee can make a request, you don’t have to be a parent or carer, but you must have been in the job for 26 weeks and you can only make one request per year.  

Employers have to review these requests fairly and respond within 3 months. They can turn down requests for ‘business reasons’ – but we’re campaigning for better flexible working rights for everyone. 

  1. Reasonable adjustments 

Employers have a legal duty under the Equality Act 2010 to proactively make reasonable adjustments to remove, reduce or prevent any disadvantages that disabled workers face. The law recognises that to secure equality for disabled people, work may need to be structured differently, support given, and barriers removed. This can include working from home.  

If you’re a disabled worker and have been working from home successfully during the pandemic, continuing to work from home could be a reasonable adjustment that your employer can provide, should you want it – but bosses must also provide reasonable adjustments in the workplace.  

  1. Right to time off in emergencies to look after children 

There are huge gaps in childcare provision leaving parents without the support they need to juggle work and care. If your employer has given you short notice to return to the workplace, by law anyone classed as an employee has the right to take time off work to help someone who is dependent on them in an unexpected event.

A dependent includes children but also a partner, someone you live with or a person who relies on you to make care arrangements. If you’re looking at any of these options, talk to your union and they can support you.

Finally, if you’re not in a union, join one.

Unionised workplaces have negotiated for additional access to flexible work and support to manage care that goes way above what you get under the law.  

You’re better off in a union – joining a union today

We’re currently running a survey on flexible working – have your say

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