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UK workers' rights reform not expected until 2026

UK workers' rights reform not expected until 2026

 


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British workers will have to wait until the end of 2025 or even 2026 for some of the government's major employment reforms to begin.

Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds are due to meet business and union leaders on Tuesday ahead of the government's own deadline for publishing draft legislation.

Labor has pledged to enact jobs legislation within 100 days of forming the party, which is due to be published on Thursday.

The package of around 75 measures is at the heart of Labour's program to get wages paid and includes protection against unfair dismissal from the first day of employment, new rights to working hours, flexible working and the right to stop working outside contractual hours.

The government is trying to assure workers it is on their side as it prepares for the budget on October 30, when it is expected to make difficult decisions on taxes, benefits and public spending.

Officials said it would take more than a year for some key measures to be implemented, and more complex reforms would take much longer to complete.

One business group leader added that they haven't seen much of this before 2026. “There is a feeling of…let’s get it right from the beginning…the mood is to use secondary legislation to give time for anything that is controversial.” For consultation.

Those involved in the meetings with civil servants hope the legislation published next week will provide a framework on which ministers can boast that they have achieved their 100-day target.

The bill is expected to include powers for ministers to pass regulations that will eventually fill policy gaps.

It could take three months for the bill to pass through parliament, followed by 12 weeks of consultation, with more time needed to pass relevant secondary legislation.

Two government officials said it was realistic to think it could take between a year and 18 months for some major measures to be implemented in the workplace.

It will be at least another year, possibly longer, until everything is sorted out, one person said.

This applies to provisions such as first-line protections against unfair dismissal, a ban on zero-hours contracts and a crackdown on employers who use dismissal and rehire tactics.

In some areas, changes are relatively simple and faster to implement. This includes repealing trade union laws, strengthening the right to flexible working and extending statutory sick pay.

Clarifying bereavement leave rights and strengthening protection for pregnant workers can also be achieved quickly.

However, some wider reforms, including a separate review of the UK's parental leave system, a rewrite of workers' employment status and the introduction of collective bargaining in the care sector, are not part of the bill and are likely to be extended until 2027.

The promised right to switch off may be addressed in a later code of conduct.

A lobbyist for a second business group said ministers had become pawns of luck by setting a 100-day deadline. And added: “We found out that there are a lot of very important things that are not easy to design, and how many of them still remain.” work out.

One of the most controversial issues is how to design statutory probation periods to ensure that employers follow a fair process when dismissing new employees after the current two-year protected entitlement period is abolished.

The second lobbyist said we don't yet know how fair dismissal procedures will work or what rights will apply during that period, adding that it could be years before any measures take effect.

He pointed out that ministers were already wary of the risk of a surge in employment tribunal claims if there were any ambiguities about the new rules.

Some companies are really worried about being sued, another company official said.

Colin Leckey, partner at law firm Lewis Silkin, said changes to the unfair dismissal eligibility period could come into effect in the first half of 2025, but allow ministers time to adjust.

A postponement to 2026 is also possible, he added.

The ban on so-called zero-hours contracts may also take time to improve. Labor planned to deliver this through new contract rights to reflect the number of hours workers regularly work over a 12-week reference period.

But companies and unions are concerned this could cause problems in sectors where there are seasonal surges in demand.

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