Queen’s Speech: Broken promise on employment bill will see “bad bosses celebrating”

The TUC yesterday accused the government of “turning its back” on working people after ministers failed to include an employment bill in the Queen’s Speech.

  • Vital rights ministers had promised like default flexible working, fair tips and pregnancy discrimination protections risk being ditched “for good” 
  • New seafarer minimum wage plans are “unworkable” and won’t prevent a repeat of P&O, warns union body 

The TUC has accused the government of “turning its back” on working people after ministers failed to include an employment bill in the Queen’s Speech. 

The union body said that the government’s broken promise to boost workers’ rights will see “bad bosses celebrating”. 

In 2019, the government announced it would bring forward a new employment bill to improve people’s rights at work, but despite committing to the bill on at least 20 occasions, ministers have shelved the legislation.  

Commenting on the decision to exclude an employment bill from yesterday’s Queen’s Speech, TUC General Secretary Frances O’Grady said: “The prime minister promised to make Britain the best place in the world to work. But he has turned his back on working people. 

“Today, bad bosses up and down the country will be celebrating. 

“No employment bill means vital rights that ministers had promised – like default flexible working, fair tips and protection from pregnancy discrimination – risk being ditched for good. 

“And it means no action on the scourge of insecure work and ending exploitative practices like zero-hours contracts and fire and rehire. 

“After the P&O scandal, dragging our outdated labour laws into the 21st century has never been more urgent. 

“But by shelving the employment bill, ministers have sent a signal that they are happy for rogue employers to ride roughshod over workers’ rights. 

“Enough is enough. This is a government that just doesn’t get it – from the cost of living emergency to the insecure work epidemic.  

“People can’t wait for greater rights and security at work – they need it now.” 

On the seafarer minimum wage enforcement plans, O’Grady added: “This proposal is feeble and likely unworkable. The government has done nothing to tackle the most flagrant labour abuse in years by  P&O.  

“Only stronger employment legislation that boosts worker protections and stops companies firing on the spot will prevent another P&O-type scandal.” 

The TUC says that the following policies were all promised within an employment bill, and are now risk being ditched altogether: 

  • Ensure that tips go to workers in full. 
  • Introduce a new right for all workers to request a more predictable contract. 
  • Create a new single enforcement body offering greater protections for workers. 
  • Extend redundancy protections to prevent pregnancy and maternity discrimination. 
  • Make flexible working the default unless employers have good reason not to. 
  • Allow parents to take extended paid leave for neonatal care. 
  • Introduce a new legal entitlement to one week’s leave for unpaid carers. 

In addition, the government consulted on reasonable notice period for shifts allocated and cancelled, and payments for cancelled shifts, which the TUC points out the government has “since gone quiet on.” 

The union body also highlights that the government promise to make employers responsible for preventing sexual harassment risks falling by the wayside without the employment bill, as the policy needs primary legislation to carry it forward.

In the notes to the 2019 Queen’s Speech, the government said it would bring forward the employment bill to:  

  • Protect and enhance workers’ rights as the UK leaves the EU, making Britain the best place in the world to work.  
  • Promote fairness in the workplace, striking the right balance between the flexibility that the economy needs and the security that workers deserve.  
  • Strengthen workers’ ability to get redress for poor treatment by creating a new, single enforcement body.  
  • Offer greater protections for workers by prioritising fairness in the workplace, and introducing better support for working families.  
  • Build on existing employment law with measures that protect those in low-paid work and the gig economy. 

In the 2019 Conservative manifesto, the following promises were made on employment rights:  

  • We will create a single enforcement body and crack down on any employer abusing employment law, whether by taking workers’ tips or refusing them sick pay.  
  • We will ensure that workers have the right to request a more predictable contract and other reasonable protections. 
  • We will encourage flexible working and consult on making it the default unless employers have good reasons not to.  
  • We have reformed redundancy law so companies cannot discriminate against women immediately after returning from maternity leave.  
  • We will legislate to allow parents to take extended leave for neonatal care, to support those new mothers and fathers who need it during the most vulnerable and stressful days of their lives.  
  • We will look at ways to make it easier for fathers to take paternity leave.  
  • We will extend the entitlement to leave for unpaid carers, the majority of whom are women, to a week. 

The UK has one of the best workers’ rights records in the world, says UK Government

The UK has one of the best workers’ rights records in the world. As a result of government action, there are now more employees on the payroll than ever before, as we continue to support workers and build a high skilled, high productivity, high wage economy.

The government has protected and enhanced workers’ rights by:

  1. Making sure 2.5 million people received a pay rise in April by raising the minimum and living wage. The largest ever cash increase to the National Living Wage will put over £1000 a year into a full-time workers’ pay packet, helping to ease cost of living pressures. We’re helping younger people too, by lifting the minimum wages for under-23s and apprentices.
  2. Leading the world with one of the highest minimum wages in the world – more generous than those in similar economies such as France, Germany and Japan.
  3. Holding UK businesses to account, ensuring employees are getting what they are owed. In December we named and shamed 208 employers who had failed to pay the minimum wage – taking the total number of employers named since 2014 to around 2,500. We made sure these companies paid back their employees and paid the price with hefty fines for law breakers. We have also quadrupled the maximum fine for employers who treat their workers badly.
  4. Giving the lowest paid in society more control over when and where they work. The government just this week announced it will extend the ban on using exclusivity clauses to contracts where a worker’s guaranteed weekly income is below the Lower Earnings Limit, which is currently £123 a week. This ensures an estimated 1.5 million people have the option to pick up extra work if they want to, further increasing flexibility.
  5. Tackling appalling business practices, such as P&O Ferries firing their employees without consultation. Reporting them to the insolvency service and taking an active role in ensuring they treat their workers fairly, we also recently committed to producing a statutory code on fire and rehire practices to strengthen the rights of all employees. This will clamp down on controversial tactics used by employers who fail to engage in meaningful consultations with employees before making changes to their contracts.
  6. Closing a loophole which sees agency workers employed on cheaper rates than permanent workers.
  7. Recognising the importance of flexible working arrangements by announcing a wide-ranging package of measures to help give employees more flexible working options in the future, including seeking views on making flexible working the default unless employers have good reason not to.
  8. Offering generous leave entitlements, continuing with our aim to make the UK the best place in the world to live and work. Workers get over 5 weeks of annual leave and a year of maternity leave, while the EU minimum for maternity leave is just 14 weeks.
  9. As part of this, we also brought into force a world first, giving parents a new legal right to 2 week’s paid bereavement leave for those who suffer the devastating loss of a child, irrespective of how long they have worked for their employer.
  10. Giving all workers the right to receive a statement of their rights from day one.
  11. Supporting workers throughout the pandemic, taking steps to protect the earnings of workers through furlough, including a new law to make sure furloughed employees who were made redundant received full redundancy payments.
  12. And of course, all this action to support workers’ rights has come alongside the government’s unprecedented £9bn package to support families with the cost of living, including a £150 council tax rebate, and a £200 energy bill discount to cut energy bills for the vast majority of households.

Scottish Secretary responds to Queen’s Speech

Scottish Secretary Alister Jack said: “This is a Queen’s Speech which delivers for Scotland and the whole of the UK.

“Measures in the Queen’s Speech will help us grow our economy, so we can continue to recover from the pandemic, tackle the rising cost of living and level up across the country.

“We will bring in a range of measures to make our country safer, from tackling state-sponsored espionage, to cracking down on modern slavery.

“We will show leadership with a series of ambitious reforms which will support citizens across the United Kingdom.

“We will continue to maximise the benefits of Brexit with legislation to cement our fantastic trade deals with Australia and New Zealand, and remove outdated EU laws. Outside of the EU, the UK will continue to prosper and thrive.”

TUC: A May Day to Remember

May Day is unique. It’s the day in the year when we celebrate the bonds that bring us together as workers and trade unionists. And the fundamental message of May Day – friendship between workers of all backgrounds and nationalities – resonates more strongly than ever before (writes TUC General Secretary FRANCES O’GRADY).

This year, I’m proud to be speaking at the Chesterfield May Day rally, organised by the brilliant local trades council. And I’ll be arguing that even amidst these tough times, by sticking together and organising together, working people can win together.

There’s never been more need for that unity and solidarity. The brutal war in Ukraine casts a terrible shadow. Tech change is transforming our economy and the jobs we do. And the climate emergency demands we get our act together on a just transition to net zero, with good, green, unionised jobs.

In Britain and right around the world, workers also face an intensifying cost-of-living crisis. Energy bills are now rising 14 times faster than wages. One in three parents with pre-schoolers spend over a third of their pay on childcare. And last week, the ONS found that a quarter of people are already struggling to make ends meet – and worse is on the horizon.

That’s why the TUC is demanding an Emergency Budget to boost workers’ incomes. From a real living wage and fair pay agreements to a decent rise for public sector workers, there’s plenty we can do. And action on the cost-of-living must include a windfall tax on the excess profits of the energy giants, alongside the equalisation of capital gains and income tax. It’s time to raise tax on wealth, not workers.

As workers struggle, the government is all over the place. Despite promising to upgrade our rights, ministers look set to delay the Employment Bill yet again.

For some reason, the Chancellor seems more concerned about defending legalised tax avoidance, such as non dom status, than real wages, benefits and living standards. And, as Partygate rumbles on, the PM is focused on saving on his own skin: the next “work-related” event he attends could be his own leaving do.

The recent scandal at P&O underlines why we need change. The no-notice sacking of 800 skilled seafarers, and their replacement with cheap agency labour, is gangster capitalism at its worst. I’ve been proud to speak at P&O rallies and take to the airwaves to demand the reinstatement of those workers – alongside tough action against P&O and parent firm DP World.

The TUC will always support workers taking action against injustice. Across the economy, from our railways to our universities, we’re seeing an upsurge in strikes as workers say: enough is enough. With our membership growing for each of the past four years, we are a movement on the front foot.

And on Saturday 18 June, trade unionists will be gathering in London for our national demonstration: We Demand Better. We’ll be demanding action on the cost of living, a decent pay rise for all, and a New Deal for working people. So spread the word among your friends, colleagues and members – book those coaches and trains – and let’s make this a real show of strength and unity.

Have a wonderful May Day – and solidarity to all.

Today (Sunday) is International Workers’ Day, an annual celebration of working people.

After two hard years, when many workers faced extraordinary challenges due to the pandemic, they now find themselves in the midst of a cost of living crisis.

The TUC is using today’s celebration to highlight the vital role unions play in helping their members gain fair pay rises through collective bargaining.

Unionised workers are paid on average five per cent more than other similar workers. This is equivalent to £1,285 a year based on the average wage.

TUC Deputy General Secretary Paul Nowak, who will speak at today’s May Day rally in Trafalgar Square,said: “International workers day should be a time to celebrate. And working people can be proud of how they have brought the nation through the pandemic.

“But they are now in another crisis. The cost of living is racing ahead of their pay. And our Conservative government is doing nothing to help them.

“Working people need the power of government on their side. We need an emergency budget to give direct support with surging bills. And ministers should give working people and their unions stronger powers to negotiate fair pay deals.

“Join us at our national march and rally on 18 June to demand better for working people. Better pay, better rights and a better voice at work through unions. Only stronger unions can deliver a new deal for working people. Whether it’s winning in the workplace, or influencing government, it’s unions that make the difference

“If you’re not in a unionised workplace get together with your workmates and join a union. If there are enough of you, your employer is legally required to sit down and negotiate a fair pay rise with you. But if you’re not in a union, you have little bargaining power. And you lose out – big time.”

Join the march and rally in London, 18 June

What are the rules if you’re temporarily laid off?

If you’re one of the workers who’ve been asked to go on furlough, make sure you know your rights.

The coronavirus outbreak has put the UK economy under immense strain, with businesses across the country shutting down to prevent the spread.

After discussions with trade unions, the government is to plough billions of pounds into a furlough scheme that will see the taxpayer give businesses 80 per cent of the wages of those employees who are temporarily laid off.

This should stop those business suffering a drop-off from making workers permanently redundant. It will ensure that more workers have enough money to cover their bills and leave businesses well-placed to ramp up activity once demand picks up again.

But while measures to protect jobs are welcome, it’s important that employers follow the rules when sending staff on furlough.

And if you’re one of the workers who’ve been asked to go on furlough, make sure you know your rights.

Despite the government having recently published guidance on how the scheme will operate, there are still a number of unanswered questions about the scheme. But this is what we know right now:

Bosses must follow the rules

Bosses can’t just stick workers on furlough or shorter hours.

An employee is regarded to have been laid off during a particular week if the employer does not have sufficient work for the employee and the employee is not paid as a result. (s.147(1) of the Employment Rights Act 1996).

What does your contract say?

If your contract contains the right for the employer to impose a lay-off, they can simply do so.

But it needs to be for a reasonable period of time, not indefinite.

Collective agreements between employers and unions will normally include provision for minimum payments if employees are laid off for a period.

If it’s not in the contract, then the employer needs your written, informed consent. And they have to make it clear how long the lay-off will be.

The lay-off has to be kept under review and the employer must seek further consent if it lasts longer than expected.

What happens if this isn’t in your contract and you say “no”?

If an employee or their union objects to the lay-offs, the employer cannot simply impose it.

If workers say “no” and the employer attempts to press ahead, employees can resign and claim unfair constructive dismissal, and possibly also claim a statutory redundancy payment.

Or they can continue in employment but claim any shortfall in pay under the unauthorised deduction of wages laws.

This is especially helpful if you haven’t got the two years’ service needed to claim unfair constructive dismissal.

How much will I get paid?

The government will stump up 80 per cent of the wage costs of those laid off. It will also cover employer costs such as their National Insurance and pension payments at the minimum legal level.

It will only cover basic salary and not commission payments and is capped at £2.500 a month. This means that, as it stands, those who currently receive piece work “bonuses” would see their income fall substantially.

Employers can, and we believe should where they can afford it, top up wages to 100 per cent.

If your pay varies, your employer can claim for the higher of either the same month’s earnings from the previous year or average monthly earnings from the 2019-20 tax year.

Who does it cover?

Employees who are paid via Pay as You Earn payroll, which is likely to include a number of agency workers as well as those working via zero hours arrangements. They must have been on the organisation’s payroll as of 28 February 2020.

The scheme also covers employees who were made redundant since 28 February 2020, if they are rehired by their employer.

But, as it currently stands, those workers who have gone onto short-time working will not be covered by the scheme. Those workers will not have their wages topped up to normal levels.

What about the self-employed?

The self-employed (or at least most of them) are covered by a separate Self Employed Income Support Scheme.

Am I entitled to redundancy payments?

An employee who has agreed to furlough (or to short-time working) either for four consecutive weeks or for a total of six weeks (no more than three being consecutive) in any period of 13 weeks can resign and claim a redundancy payment.

How do employers decide who goes on furlough?

Employers must use a fair process for selecting employees for furlough and be very clear about why they are making certain decisions.

They must be careful not to discriminate against particular groups of workers who are protected by equality law, either directly or indirectly.

For example, they must not choose to furlough a worker because their race or because they are pregnant, to do so would be direct discrimination.

Similarly, they should not ask disabled workers to agree to a temporary lay-off to avoid putting in place reasonable adjustments that would allow them to continue working during the current outbreak.

Examples of indirect discrimination would be selecting workers for furlough because of their caring commitments, a group of workers in which women are overrepresented.

I have two jobs. If I am furloughed from one, what happens to the other?

Each furlough arrangement applies to a single job you do. So you can continue working in one job while furloughed from another. The pay cap applies to each employer individually.

Can my employer give me work to do during furlough?

No. A furloughed employee can take part in volunteer work or training, as long as it does not provide services to or generate revenue for their employer.

But if you are asked to do training you must be paid at least the minimum wage/National Living Wage, even if this is more than the 80 per cent of wage that will be subsidised by the government.

Tim Sharp, TUC

Call for clarity on EU workers

worker

The UK Government must reassure workers they will not lose out after the EU referendum outcome, First Minister Nicola Sturgeon and STUC General Secretary Grahame Smith said yesterday. The STUC also supported the call to give all EU citizens currently resident in the UK reassurance they can continue to live, work and study here without restriction.

The appeal comes as Theresa May prepares to take over as Prime Minister later today.

On Monday the Westminster government said there has been no change to the rights and status of EU nationals in the UK, and UK nationals in the EU, as a result of the referendum.

In a joint statement, the Cabinet Office, the Home Office and the Foreign & Commonwealth Office said:

The decision about when to trigger Article 50 and start the formal process of leaving the EU will be for the new Prime Minister. The UK remains a member of the EU throughout this process, and until Article 50 negotiations have concluded.

When we do leave the EU, we fully expect that the legal status of EU nationals living in the UK, and that of UK nationals in EU member states, will be properly protected.

The government recognises and values the important contribution made by EU and other non-UK citizens who work, study and live in the UK.

I have lived in the UK for more than 5 years. What does the vote to leave the EU mean for me?

  • EU nationals who have lived continuously and lawfully in the UK for at least 5 years automatically have a permanent right to reside. This means that they have a right to live in the UK permanently, in accordance with EU law. There is no requirement to register for documentation to confirm this status.
  • EU nationals who have lived continuously and lawfully in the UK for at least 6 years are eligible to apply for British citizenship if they would like to do so. The eligibility requirements can be found here.

 What if I have lived in the UK for less than 5 years?

  • EU nationals continue to have a right to reside in the UK in accordance with EU law. EU nationals do not need to register for any documentation in order to enjoy their free movement rights and responsibilities. For those that decide to apply for a registration certificate, there has been no change to government policy or processes. Applications will continue to be processed as usual.
  • Non-EU family members of EU nationals must continue to apply for a family permit if they wish to enter the UK under EU law, and they do not have a residence card issued by a member state. There has been no change to government policy or processes, and applications will continue to be processed as usual.
  • Extended family members of EU nationals must continue to apply for a registration certificate (if they are an EU national) or residence card (if they are a non-EU national) if they wish to reside in the UK. There has been no change to government policy or processes, and applications will continue to be processed as usual.
  • Irish nationals enjoy separate rights, under various pieces of legislation, which allow Irish nationals residing in the UK to be treated in the same way as British nationals in most circumstances. There is no change to this position.
  • Croatian nationals might continue to need to apply for a registration certificate to be allowed to work in the UK under the transitional arrangements that were put in place when Croatia joined the EU in 2013. The type of registration certificate that they might need will depend on whether they need permission to work in the UK, and what they will be doing. There has been no change to government policy or processes, and applications will continue to be processed as usual.

 Does the government plan to remove EU nationals from the UK?

There has been no change to the right of EU nationals to reside in the UK and therefore no change to the circumstances in which someone could be removed from the UK.

As was the case before the referendum, EU nationals can only be removed from the UK if they are considered to pose a genuine, present and sufficiently serious threat to the public, if they are not lawfully resident or are abusing their free movement rights.

worker2

However the First Minister is seeking reassurance from Theresa May that these exisiting EU workers rights will be protected.

Ms Sturgeon met the STUC General Council yesterday to discuss fair work and progressive workplace practices in light of the immediate and long-term implications for the Scottish economy of the referendum result, where she also reiterated her message that her government will pursue all options to protect Scotland’s position in Europe.

The First Minister said: “I welcome today’s discussions with the STUC General Council. I want to stress that this government will work with STUC and trade unions to share information, listen and understand priorities and concerns, and make clear, here and further afield, that Scotland remains a stable, attractive and fair place to do business.

“Scotland has a fundamentally strong economy and we will continue to work with employers and trade unions to boost productivity, innovative workplaces and inclusive growth. We will pursue every option to protect Scotland’s position in Europe and, by extension, the interests of EU citizens who live and work here.

“I call on the new Prime Minister, Theresa May to give an immediate guarantee that the existing rights of the 173,000 EU nationals in Scotland will be protected.

“In Scotland we have fostered a distinctive and a positive approach to fair work focusing on economic and social benefits for all.

“The European Union has been instrumental in strengthening and protecting workers’ rights and enshrining key employment rights relating to pay, safe working conditions and the right to unionise. I firmly believe that EU membership delivers many social, economic and cultural benefits for individuals, business and communities across Scotland.

“We will pursue every option to protect Scotland’s position in Europe, and all the many benefits which that brings in terms of workers’ rights and social protections. That includes our place in the single market and the free movement of people.”

Grahame Smith, General Secretary STUC said: “We share the view of the First Minister that the best place for Scotland is firmly within the European Union. We are further assured that the FM is exploring every available option to retain Scotland’s membership within the European Union and is moving to positively address some of the challenges that have arisen in respect of the attitude of the Westminster Government. We look forward to continuing to work closely with the Scottish Government to ensure that our shared commitments to inclusive sustainable economic growth continues.”

First Minister: “Workers’ rights are human rights”

First Minister to deliver Jimmy Reid Memorial Lecture

jimmy-reid-win

The UK Government’s Trade Union Bill does not reflect the reality of industrial relations in Scotland and does not contain a single proposal that would be passed by the Scottish Parliament, First Minister Nicola Sturgeon will say tomorrow. Continue reading First Minister: “Workers’ rights are human rights”