The UK Government has reintroduced its Employment Rights Bill, promising to transform the working conditions of 10 million people across the country. The bill, which returned to Parliament today (21 October), is aimed at improving rights for workers, including increased paternity leave, greater job security, and the elimination of insecure work.
Deputy Prime Minister Angela Rayner stated that the legislation will offer significant upgrades to workers’ rights, particularly benefiting those in low-paid, unstable jobs. “We’re delivering real change for working people across the country, while driving our mission for growth and making people better off,” she said. “This landmark legislation will extend employment protections to millions more workers.”
One of the key reforms under the Employment Rights Bill is an extension of paternity leave, with an additional 30,000 new fathers set to qualify. Workers in some of the UK’s most deprived areas could see income savings of up to £600 per year. These savings are especially significant for the 2.4 million people on irregular contracts or zero-hours agreements, who often face hidden costs from unpredictable work schedules, such as expensive childcare or transport fees.
The government’s impact assessment, published today, suggests the bill could bring positive, though small, direct effects on the UK’s economic growth. By addressing poor productivity, job insecurity, and strained industrial relations, the bill aims to improve overall working conditions and living standards.
Business Secretary Jonathan Reynolds emphasised the government’s focus on securing better conditions for workers while boosting the economy. “From our very first day in office, this Government has moved to restore security for working people,” Reynolds said in Parliament. “This legislation will deliver a new deal for working people. It will help fix our broken labour market, and tackle the poor pay, poor working conditions and job insecurity that have been holding our economy back.”
Under the bill, several key protections will be introduced, including the right to guaranteed hours and proper notice for shift cancellations. Workers impacted by last-minute changes in their schedules will be compensated, potentially saving up to £120 million per year across the workforce. Sectors like hospitality, which accounts for 20% of low-paying jobs, stand to benefit greatly.
The legislation will also extend the right to unpaid parental leave to 1.5 million workers, introduce bereavement leave for up to two million people annually, and make flexible working the default option for many employees. Additionally, the bill seeks to create a level playing field for businesses, ensuring that good employers are not undercut by those offering lower standards.
The government is consulting on several reforms, including removing the waiting period for Statutory Sick Pay (SSP) and eliminating the Lower Earnings Limit. These changes would make SSP available to employees from their first day of sickness, extending it to an additional 1.3 million people.
The reforms, developed with input from businesses and trade unions, aim to make work pay, raise living standards, and foster a more secure, productive workforce across the UK.