UK Announces New Employment Policies

UK Announces New Employment Policies
Above: UK Prime Minister Sir Keir Starmer speaks at the Trade Union Congress on Sept. 10, 2024. Image copyright: Andrew Aitchison/Contributor/In Pictures via Getty Images

The Facts

  • The UK's Labour government has unveiled 28 individual reforms under its new Employment Rights Bill, including day-one-of-employment protections surrounding wages, firing and rehiring policies, and paid leave.

  • If implemented, which could take two years, the law would protect 9M workers from unfair firing; add 30K fathers to paternity leave and 1.5M to parental leave; and give qualifying employees immediate access to sick pay.

  • It would also ban enforced zero-hours contracts, giving employees the option to opt into minimum-hours contracts or not; require bosses to allow flexible work schedules; and ban firing and rehiring, which it claims is a "loophole" to replace workers or rehire them on reduced conditions.

The Spin

Labour narrative

This bill is a tremendous attempt at protecting workers while also keeping businesses afloat. While the Labour Party is rightfully seeking to end exploitative contracts and unfair termination, it's also being pragmatic by allowing a consultation period to play out before enforcing wage- and hour-related policies.

Tory narrative

Starmer's Labour government has no idea how its policy proposals would impact real-world business owners. It does, however, know precisely how this bill would impact its wallet: With a fifth of the measure dedicated to extending the powers enjoyed by its trade union paymasters, the true purpose of this Labour-serving bill is apparent for all to see.

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