The King’s Speech: What Employers Must Know

July 23, 2024

By Rachel Ford-Evans

Following Labour’s election win, some of the biggest reforms to UK employment law since the 1970s were announced on 17 July 2024 in the King’s Speech.

The speech announced the two employment bills which are proposed by the new Government, including an Employment Rights Bill, and an Equality (Race and Disability) Bill. These bills are expected to be brought to Parliament by 12 October 2024. In light of this quick turnaround, our employment law experts outline the key points about these bills which employers need to be aware of.

Employment Rights Bill – What will it include?

 We are still waiting to hear exactly what the bill will include; however, it is likely to cover most (but might not yet be all) of the reforms which Labour had promised in their manifesto. We have summarised these proposals here. In particular, the briefing paper published after the King’s Speech confirmed that the Employment Rights Bill will include the following:

• Day 1 rights to bring unfair dismissal claims for all workers, subject only to contractual probationary periods
• Flexible working rights from day 1 of employment
• A potential ban of zero-hour contracts and the right to a new “average hours” contract
• Limitations on the use of ‘fire and re-hire’ to change terms of employment
• Greater rights for trade unions (including a right to access workplaces) and a requirement on all employers to tell employees on day 1 about the right to join a union
• Reforms to the minimum wage, including introducing a flat rate for all over-18s
• Reforms to statutory sick pay, including removing the 3-day waiting period
• Duty to take all reasonable steps to protect employees from harassment in the workplace – including by third parties

Equality (Race and Disability) Bill – What will it include?

Working alongside the Employments Right Bill, this new bill will introduce a new right for employees to bring equal pay claims based on race or disability. Currently, the Equal Pay Act 1970 only allows such claims to be brought on the basis of sex. The bill will also likely make ethnicity and disability pay reporting a mandatory task for employers who employ over 250 people.

When can employers expect to see these bills implemented?

As Labour has committed to introducing these measures within its first 100 days in office, these bills are expected to be published by 12 October 2024. For the majority of changes, they are likely to be brought into law in 2025. Practically, some proposals will also require codes and secondary legislation before they take effect, which may delay their final implementation by a few more months.

What should employers do now?

Given the size of the changes and the relative speed of their implementation, it is essential for employers to get their houses in order now. We recommend that employers start to look at their employment contracts, policies and procedures, and carry out audits of their workforces and risk assessments to work out how they are likely to be affected by the changes as currently proposed.

In the meantime, employers need to keep up to date on what changes are coming and when these are likely to be implemented. Follow our live updates here to stay updated on these changes. Our employment lawyers can offer advice and direction for any employers who are concerned about what they should be doing next.

If you require employment law advice or HR support from our experts, contact Rachel Ford-Evans on 029 2082 9120 or rford-evans@darwingray.com for a free initial chat to see how we can help you.