(qlmbusinessnews.com Fri. 11th Oct, 2024) London, UK —
New Workers' Rights: Sick Pay and Parental Leave Set for Major Changes in UK
Millions of UK workers are set to benefit from new rights to sick pay and parental leave, as the government introduces sweeping changes in a landmark reform of employment laws. Under the new Employment Rights Bill, workers will be eligible for statutory sick pay (SSP) from the first day they fall ill, while unpaid parental leave and paternity leave will be accessible from the first day of employment.
The changes, which the government has called “the biggest upgrade to workers' rights in a generation,” are aimed at improving job security and worker welfare. However, some elements of the bill have come under fire for being delayed or diluted, with most changes not set to take effect for another two years following a consultation period.
Deputy Prime Minister Angela Rayner defended the timeline for implementation, stating that the scale of the reforms means some adjustments will take longer. She also pointed out that many companies have already adopted some of the proposed measures ahead of time.
Key measures include the removal of the two-year qualifying period for protection against unfair dismissal, which will benefit approximately nine million workers who have been with their employers for less than two years. However, the introduction of a new nine-month probation period during which workers can still be dismissed without the full protections has raised concerns. It remains unclear under what circumstances unfair dismissal claims can be made within that probation period.
Key Changes in the Employment Rights Bill:
– Statutory Sick Pay: Workers will receive SSP from day one of illness, rather than from the fourth day.
– Lower Earnings Limit: The minimum earnings threshold of £123 per week to qualify for SSP will be scrapped, although a lower rate of SSP will be introduced for lower earners.
– Paternity Leave: Fathers and partners will be eligible for paternity leave from day one of employment, instead of after 26 weeks.
– Parental Leave: Unpaid parental leave will be available from day one, rather than after one year of service.
– Bereavement Leave: Unpaid bereavement leave will also become a day-one right.
– Flexible Working: Employers will be required to consider flexible working requests from day one, with eight business-related reasons available for refusal.
While business groups such as the Confederation of British Industry (CBI) have welcomed the reforms, praising the government’s engagement with both employers and unions, concerns have been raised about how smaller firms will cope with the new regulations. Tina McKenzie, policy chair at the Federation of Small Businesses, criticised the bill as “rushed, clumsy, and chaotic,” warning that small businesses may struggle to adapt to the changes.
The government has also opened consultations on extending probation periods for new employees to nine months, a contentious issue with businesses pushing for longer periods and unions advocating for shorter terms.
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