The government will today set out the first round of amendments to the employment rights bill as it passes through parliament, following consultation and responses with business groups, trade unions and wider civil society.

First introduced in October as part of Labour’s Plan to Make Work Pay, the government describes the proposed legislation as the “biggest change to workers’ rights in a generation”, and aims to boost both productivity and security for workers. 

In a press release issued this morning (4 March) ahead of the full amendments being published, the government confirmed some details of the changes, and said its plan was a “core part of the mission to grow the economy, raise living standards and create opportunities for people across the country”, with the amendments “tackling the low pay, poor working conditions and poor job security that has been holding the UK economy back”. 

Deputy prime minister Angela Rayner said: “For too long millions of workers have been forced to face insecure, low-paid and irregular work, while our economy is blighted by low growth and low productivity.

“We are turning the tide – with the biggest upgrade to workers’ rights in a generation, boosting living standards and bringing with it an upgrade to our growth prospects and the reforms our economy so desperately needs.” 

Paul Nowak, TUC general secretary, said many of the policies were “long overdue and necessary”. 

“Everyone deserves security and respect at work. These common-sense reforms will improve the quality of jobs in this country, boost growth and put more money into people’s pockets,” he added.

This is what we know so far…

Agency workers are included in zero-hours ban

Agency workers will be included in plans to ban zero-hours contracts, with the government aiming to ensure agency work does not become a “loophole” in the plans to end the “exploitative” contracts. All workers will be able to access a contract reflecting the hours they regularly work, leading to increased security to receive reasonable notice of shifts and proportionate pay when shifts are cancelled at last minute. The government said the plans will still allow employers to retain flexibility in how they manage their workforces. 

Tania Bowers, global public policy director at the Association of Professional Staffing Companies, called the move “concerning and highly disappointing” given industries such as education and healthcare were in “dire” need of qualified temporary resources. 

“This news means that highly skilled and highly paid agency workers that are often required at the last minute will be more difficult to place in temporary positions,” she said, noting that schools, for example, cannot guarantee the hours that a supply teacher will be needed for.

“This will have a detrimental impact on the public who rely on these resources. A catch-all method to employment regulation doesn’t set the UK up for success in terms of skills growth and is an unfair approach for the recruitment supply chain,” she warned.

According to a BBC report, agency workers whose shifts are changed or cancelled at short notice would also be eligible for compensation, although no further details have been clarified.

Sick pay will be capped at 80 per cent of salary

While the government previously confirmed removal of the three-day waiting period and lower earnings limit to receive statutory sick pay (SSP), this morning’s press release confirmed workers too ill to work will either receive SSP or 80 per cent of their weekly pay, whichever is lower.

Work and pensions secretary Liz Kendall said “no one should ever have to choose between their health and earning a living, which is why we are making this landmark change”. 

Rachel Suff, wellbeing adviser at the CIPD, welcomed the progress so far, but noted that a minority of low earners could still be worse off only receiving 80 per cent of their salary when ill. 

“There also needs to be further review of SSP to make it more flexible; for example, to help employees with fluctuating health conditions. More flexibility in how SSP is paid could help support people with phased returns from sick leave, when they may be fit for some work but cannot return to their usual hours,” she said. 

Suff urged the government to ensure a long enough lead time for businesses, noting that “sufficient support and guidance” for employers would be “vital” to ensuring the measures worked.

‘Fire and rehire’ rules will be tightened

The government plans to double the maximum period of the protective award for collective redundancies from 90 to 180 days, meaning employment tribunals will be able to grant larger awards to employees for failures to meet consultation requirements. It aims to “enhance the deterrent against employers deliberately ignoring their collective consultation obligations and ensure it is not financially beneficial to do so”. 

There will be protections for umbrella company employees

The government has set out aims to ensure workers employed by an umbrella company can access the same rights and protections as those directly employed by a recruitment agency. It noted plans for “enforcement action” to be taken against umbrella companies that do not comply.

Bereavement leave for miscarriage will be offered

Although not confirmed by the government, the Guardian has reported that an amendment to the bill will give two weeks’ bereavement leave to parents who experience a pregnancy loss before 24 weeks’ gestation. Currently, parents have a right to bereavement leave when they have lost a child or had a stillbirth after 24 weeks. 

Jonathan Reynolds, the business secretary, told ITV’s Good Morning Britain in January: “I know how important it is. Like a lot of people I’ve had some experience of this myself. It’s very, very difficult.”

This breaking People Management story will continue to be updated as further details are published