One of Labour’s biggest promises during the General Election campaign was a so-called ‘New Deal for Working People’, launched within its first 100 days in office.
Right on schedule, the new government has published legislation it says will deliver on that promise.
Getting these reforms right will go a long way to determining whether Labour’s time in office is a success. The government doesn’t have much money to spend in ways that will have an immediate impact on people’s lives. These new laws are aimed at doing that – at no upfront cost to the public purse.
And because so much of the rest of Labour’s reforms only apply to England, this package of measures will be one of the government’s most important interventions in Scotland.
So what exactly is on offer? Quite a lot – 28 individual reforms to employment law, in total.
Employees will be eligible for maternity, paternity, and bereavement leave from day one. Mothers will be protected from dismissal during maternity leave and within six months of returning to work. Limits to sick pay will be lifted so more workers can get it from the first day they are ill.
Employers will be required to offer flexible working to staff who ask for it. Staff on zero-hours contracts will have the right to a contract based on the number of hours they work over a set period. Ministers say they will close loopholes allowing so-called ‘fire and rehire’ practices.
In addition, larger employers will need to show how they’re taking action to close the pay gap between men and women and treat women going through menopause fairly. A new Fair Work Agency will be created to help enforce new and existing rules and give practical advice to workers, for instance, on claiming the holiday pay they’re due.
There’s no price tag on these measures for the government – but it’s business, particularly small businesses, worrying they’ll be hit with the bill.
In particular, there’s unhappiness at plans to tighten the rules around unfair dismissal. Currently, employers can’t be accused of unfair dismissal within two years of a worker starting a job. Employers worry it will make it harder to change their minds about newer staff, who aren’t up to the job.
From the side of employees, unions are pleased with the commitment to expanding workers’ rights. But there’s also concern that certain details aren’t totally clear yet. A consultation is being launched on making probation periods of up to nine months legally binding – leaving a question mark over the difficult issue of unfair dismissal.
More contentious reforms, like a ‘right to switch off’ by not responding to work calls or emails outside of working hours, are also being left until further consultation is carried out, which could take two years.
The Labour government has to balance the demands of unions and workers with the needs of business and show that these reforms won’t get in the way of its ultimate goal – economic growth.
You can measure that. But ultimately, these reforms are about how the people who are supposed to benefit from them, feel about them.
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