Yesterday's King’s Speech came after an election where big promises were made and an even bigger majority won. The State Opening of Parliament is the first opportunity to see how this new government intends to translate the poetry of campaigning into the prose of governing. They have certainly gone in hard and hit the ground running! 40 key bills included to ‘take the brakes off Britain’ - hence the running! For employers who have been holding their collective breath to see what’s happening about zero-hour contracts, day-one rights, trade union reform, single employment status and other issues, there aren't many surprises.

'My Government is committed to making work pay and will legislate to introduce a new deal for working people to ban exploitative practices and enhance employment rights'

• What does this mean? 
  This refers to the Employment Rights Bill that the Government has promised to introduce within its first 100 days. 
   
• What’s in the Bill? 
  The contents of the Bill are based on the Plan to Make Work Pay document (also referred to as their new deal for working people). As you will know from our previous blogs, there were a lot of promises made in that document. For the purpose of this short blog, we're focusing on the headline issues. 
   
• Ban exploitative zero-hour contracts
  It's no surprise that this is the main headliner. Alongside this is the promise that workers will ‘have a contract that reflects the number of hours they regularly work’ and reasonable notice and potential compensation for shift changes. We will need to wait for the draft Bill for clarification on the definition of exploitative and more detail on the right to predictability. 
   
• Fire and rehire 
  This brings no surprises either. Shrinking back from an outright ban in their bid to retain business support, the wording again is about ending the ‘scourges of fire and rehire and fire and replace’, not outlawing the process altogether. A new more effective statutory code and remedies are promised. 
   
• Day one rights 
  Again confirmation of a day-one right to protection from unfair dismissal, parental leave and sick pay for all workers. More detail on probationary periods and how they will continue to work and what exactly is meant by ‘parental leave’ is needed in the draft Bill.
   
• Statutory sick pay 
  Again, it's no surprise that the lower earnings limit is to be removed as is the waiting period. What is perhaps surprising is that this is in the Bill when it could be done much quicker by secondary legislation.
   
• Establish a Single Enforcement Body 
  Confirmation that this body will be part of their first 100-day promises.
   
• Flexible working a day one right
  An enhancement of the current right to request, but we note that employers will be required to accommodate this as far as is reasonable. Does this leave some right to refuse for employers? Hopefully, the draft Bill will clarify this.
   
• Fair Pay Agreement 
  Confirmation of this collective pay agreement within the adult social care system but again no detail as to how this will work and who will negotiate it and eventually fund it. 
   
• Other provisions
  There are other provisions listed but again no detail. Strengthening protections for new mothers, updating trade union legislation and simplifying the process of statutory recognition. 
   
• National Minimum Wage (NMW)
  This is not included in the Bill but flagged up in the notes, the Government promises to ‘deliver a genuine living wage that accounts for the cost of living and we will remove the discriminatory age bands to ensure every adult worker benefits’. The rates for the NMW are agreed with the Low Pay Commission for implementation every April. We may well see the increase in rates reflecting this promise from April 2025 although the negotiations for the new rates have already begun. The removal of the bands requires secondary legislation which could also be passed relatively easily and quickly. Whilst it isn’t a '100-day' promise of the new Government, it is something we would imagine they would want to implement quickly. 

What is missing?

There was no word on issues such as single worker category or time limits for tribunals. 

What’s next? 

The Government promised that this Bill would be introduced to Parliament within 100 days of entering government. So, they have until 12th October (counting from 5 July) to lay this before Parliament. It is at that point we will hopefully see some detail and confirm which of the promises made in their Plan to Work Pay make it to the Bill. A full parliamentary consultation and process was promised for any new legislation so we don’t envisage the Bill to become law for some time.

‘Legislation on race equality will be published in draft to enshrine the full right to equal pay in law’

• What does this mean? 
  This is referring to the Draft Equality (Race and Disability) Bill. This Bill will contain key aspects: to give a statutory right to equal pay for ethnic minorities and disabled people in the same way as women have a statutory right to equal pay and introduce ethnic and disability pay reporting for employers with over 250 employees. The latter is the more practical change for employers. Whilst we don’t have a measure of the timing for this Bill (it is not one promised within the first 100 days) larger employers may find it useful to start to compile the relevant data alongside their gender pay gap data in preparation for the introduction of the mandatory duty. 

What do we do now?

For now, it's a waiting game until we have more detail in the Bill but you can join our free webinar ‘Now let the changes begin - implications for HR professionals’ on 24 July 2024. From 10.00-10.45am our team will talk through the proposed changes and what preparations employers may want to consider so as to be ready when the vague promises become reality. 

In the meantime, if you have any questions on the above or want to find out more about how we can support you, please contact Anna Dabek.