Protections for workers will be strengthened, the government has said, as it unveiled hundreds of amendments to the employment rights bill.
Labour fought the 2024 general election on a manifesto promising to change the UK’s “outdated employment laws”.
A central policy in Sir Keir Starmer’s manifesto has not made it into the bill, meaning people will not have a right to “switch off” outside work hours.
Deputy prime minister Angela Rayner said the government has had “really constructive dialogue” with trade unions and business, and hinted they may bring in the “switch off” right through another mechanism.
The policy would allow workers to ignore work-related emails and calls outside office hours, including the right to refuse to take on extra work at the weekends.
Ms Rayner said the amendments show the government is “proudly pro-business and pro-worker”.
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However, employers are concerned that the new employment laws will push costs up further, in addition to the increase in taxes and the minimum wage coming in from April.
The 250 amendments also do not include any changes where employers had raised their biggest concerns, including the introduction of day one protection against unfair dismissal, a large upgrade of union rights and a near-ban on the use of “fire and rehire” tactics.
Here are the main amendments explained:
Ban on zero hours contracts for agency workers
Agency workers will be included in a new law, meaning workers should be able to access a contract that guarantees a minimum number of hours every week.
The government said this will ensure agency work does not become a loophole to end zero-hours contracts.
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It will offer “increased security” for workers to receive “reasonable notice” of shifts and proportionate pay when shifts are cancelled, curtailed or moved at short notice.
Unions welcomed the amendment but the Recruitment and Employment Confederation, which represents agency workers, said the change should not “undermine” the “flexibility” that zero-hour contracts offer some workers.
Statutory sick pay for all workers from day one
Employees earning below £123 a week – about 1.3 million people – unable to work due to sickness will receive the lowest of either 80% of their average weekly earnings or the current rate of statutory sick pay.
They will receive sick pay from the first day of sickness absence, instead of the current fourth day.
The government said this will mean people can take time off to recover, instead of dropping out of work entirely, and reduce infection spread to boost productivity.
However, the British Chambers of Commerce said allowing sick pay from day one could lead to higher absenteeism that smaller firms may struggle with.
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Increased period of protection for collective redundancy
Employment tribunals will be able to grant employees 180 days of pay, instead of 90, if their employer fails to meet redundancy consultation requirements.
The government said this will “enhance the deterrent” against employers ignoring their obligations to consult on collective redundancies and will ensure they do not benefit financially from not consulting properly.
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A ‘modern framework’ for industrial relations
The legal framework in which trade unions operate will be updated so it aligns with “modern work practices”.
Industrial relations will be “underpinned by collaboration, proportionality, accountability” to balance the interests of workers, businesses and the wider public, the government said.
It added further details will be revealed later.
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‘Umbrella company’ workers to have same rights as others
People paid through umbrella companies – used by recruitment agencies to pay temporary workers – will have the same rights and protections as those employed directly by a recruitment agency.
Enforcement action will be able to be taken against umbrella companies who do not comply.
The Employment Rights Bill has been through its first and second readings, and the committee stage, where it is scrutinised by a committee of cross-party MPs.
It is now heading to the report stage on 11 March, where all MPs can debate the amendments before it goes to the third reading, when MPs will vote on the bill.
