How the employment rights bill should be improved

The Employment Rights Bill currently being scrutinised in Parliament marks a significant step forward for workers and trade union rights in the UK. Described by Paul Nowak, General Secretary of the Trades Union Congress (TUC), as “the biggest upgrade to workers’ and trade union rights in a generation,” the bill seeks to dismantle decades of restrictive policies and enhance employment protections. While the bill is a milestone, it requires critical amendments to fulfil its potential and truly transform the landscape of workers’ rights.

Addressing historical setbacks

For over 40 years, trade unions have faced challenges stemming from policies that created a “hostile environment” for organising and bargaining. These setbacks contributed to stagnating wages and weakened collective representation. The Employment Rights Bill seeks to reverse some of these effects by repealing contentious laws such as the Strikes (Minimum Service Levels) Act 2023 and parts of the Trade Union Act 2016.

The bill’s proposals are particularly relevant given high-profile examples of unfair employment practices, such as British Gas’s “fire and rehire” tactics, P&O Ferries’ mass layoffs, and the precarious working conditions at companies like Deliveroo and Hermes. By addressing these issues, the bill signals a commitment to improving working conditions across various sectors.

Promising provisions

The bill introduces several positive measures:

• Day-one rights: Workers gain immediate rights to claim unfair dismissal and access paternity, parental, and bereavement leave.
• Restrictions on fire and rehire: Employers face new limits on these controversial practices, although some loopholes remain.
• Guaranteed hours contracts: Workers will have the right to request guaranteed hours, addressing the insecurity of zero-hours contracts.
• Modernised union balloting: Simplified procedures aim to improve union recognition and facilitate industrial action.

While these provisions lay a foundation for fairness, they often represent only partial solutions, requiring further refinement to deliver their full promise.

Union perspectives on improvement

Trade unions are urging Parliament to strengthen several areas of the bill to ensure its effectiveness. Among their priorities:

1. Sectoral collective bargaining
   Unions advocate extending fair pay agreements beyond social care to other industries. As Paul Nowak noted during a bill committee meeting, sectoral bargaining is essential for achieving widespread wage fairness and productivity.
2. Workplace access
   Unions seek a definitive right to access workplaces, both physically and virtually, to engage with employees and organise effectively.
3. Fire and rehire protections
   Unite and other unions have voiced concerns about loopholes that could allow employers to justify fire and rehire tactics. They propose measures requiring employers to provide financial transparency and demonstrate necessity through forensic audits before taking such actions. Mick Lynch of the RMT emphasised the need for legally enforceable mechanisms, such as injunctive relief, to prevent exploitative practices.
4. Zero-hours contracts
   Despite introducing the right to guaranteed hours contracts, the bill’s current wording may still allow exploitation. Stronger safeguards are needed to ensure these rights benefit workers in practice.

Broader stakeholder demands

Beyond union concerns, stakeholders are calling for additional reforms. Campaigners highlight the need for improved sick pay provisions and support for kinship carers, who often face financial insecurity due to limited workplace rights. The government must also address the issue of a single employment status, which could simplify protections for all workers and close gaps in the current system.

Long-term impact

Although the bill represents a landmark achievement, its immediate impact will depend on the government’s willingness to incorporate these proposed changes. Early implementation within this Parliament’s term is crucial to allow workers and unions to realise the benefits and build momentum for further progress.

The potential of the Employment Rights Bill lies not just in its passage but in its ability to deliver a fairer, more productive economy. High-skilled, high-paid jobs are attainable if collective bargaining rights are strengthened and employment protections are fully realised.

Conclusion

The Employment Rights Bill has the potential to revolutionise the UK’s approach to workers’ rights, but it must go further. Trade unions and other advocates are right to push for amendments that close loopholes, enhance collective bargaining, and protect workers from exploitation. A robust, inclusive approach to employment law is not just a win for unions but a necessary step towards a prosperous, equitable economy.

By listening to these calls for improvement, the government can ensure this bill lives up to its promise of being the most significant advancement in employment rights in a generation.