The King made his speech on 17 July 2024. He spoke more about the first 100 days of the Labour government and revealed some of the rationale behind new employment rights. These rights, discussed in previous posts, are planned to be introduced by the Employment Rights Bill: the biggest upgrade to workers’ rights in over a decade. The rights will be enforced by a new organisation: the Fair Work Agency.

The King pointed out that, although the UK’s rates of employment have increased over the last few years, it has not all been good news. UK productivity since the global financial crisis has been slow. Many employers have not been able to afford to give their workers a cost-of-living pay rise, which means that many people are struggling to meet their financial commitments. This is a problem for those on zero-hour contracts, in particular. Although these contracts suit some people very well, others feel obliged to accept them because there is no better offer of employment available. The number of people doing less secure work, such as this, has increased.

With record numbers of employees off sick, statutory sick pay needs to be reconsidered. Its rules can be complicated, with employers often getting confused about terminology such as qualifying days, waiting days and periods of incapacity for work. The current system is thought to be detrimental to those on a lower wage, who may not qualify for SSP at all. It is also very difficult to combine SSP with a phased return to work after sickness absence, meaning that employees sometimes cannot ease themselves back into work in the most beneficial way for their health.

In addition, gender issues need to be addressed. The national gender pay gap stands at 14.3% and only 52% of employers have published an action plan. Many do not have a menopause policy. Around a quarter of sexual harassment cases in England and Wales take place at work.

With more ‘day one’ rights, it is hoped that employees who are unhappy or who feel underpaid in their jobs will be able to move on to new jobs without letting fear of decreased job security stop them.

We would like to clarify that no immediate changes to handbooks and contracts are necessary, but we have the situation under review.

If you have any questions, please contact us for advice by emailing enquiries@perspectivehr.co.uk or by phoning 01392 247436.