New laws to expand workers’ rights from day one on the job

OVER seven million workers will gain new rights to claim sick pay, maternity pay, and protection against unfair dismissal from their first day at work under Labour's proposed Employment Rights Bill.

The bill, set to be announced on Thursday, marks a significant change in workers' rights, offering greater security and protections, The Times reported.

Key changes include universal entitlement to sick pay from the first day of illness. Currently, workers must wait until the fourth day of illness to qualify, and those earning below £123 a week are ineligible.

Under the new plan, 7.4 million workers who rely on sick pay, and a further one million who earn below the threshold, will benefit. However, businesses have secured a concession to set a lower sick pay rate for those earning below the threshold, a move likely to anger unions, the newspaper reported.

Additionally, women will be entitled to maternity pay from their first day of employment, rather than after six months, with improved protections against dismissal after returning to work.

Fathers will also receive more rights for paternity pay. Probation periods will be shortened from two years to six months, with workers gaining protection from unfair dismissal from their first day.

Employers can still terminate contracts during probation without a full performance management process, provided they give written reasons.

A previous proposal to give workers a statutory “right to switch off” from work communication outside office hours has been scaled back after consultations. Instead of legal requirements, businesses will be encouraged to develop their own guidelines.

The reforms are expected to trigger debate, with businesses expressing concerns about the cost and unions calling for more robust protections. Labour's deadline for introducing draft legislation within 100 days of taking office means further details will be determined later.

Anna Leach, chief economist at the Institute of Directors, noted the reforms could improve job quality and help more people join the workforce but warned of potential downsides if the costs of hiring increase. Paul Nowak, TUC general secretary, said the bill could improve working conditions for millions.

The bill comes after recent public sector pay increases totalling £9.4 billion and is seen as Labour's biggest labour reform effort since taking office.