What does the Employment Rights Bill mean for the tech sector?
The Employment Rights Bill includes 28 individual employment reforms, including ending zero-hours contracts and fire and rehire practices, establishing day one rights for paternity, parental and bereavement leave for workers, and strengthening statutory sick pay.
It includes many of Labour's Plan to Make Work Pay proposals related to individual and collective rights.
Accompanying this will be measures to help make the workplace more compatible with people’s lives, with flexible working made the default where practical. Large employers will also be required to create action plans on addressing gender pay gaps and supporting employees through the menopause, and protections against dismissal will be strengthened for pregnant women and new mothers.
Government will also create a Fair Work Agency, with the aim of consolidating various enforcement bodies and ensure robust compliance with employment rights—a crucial step toward safeguarding workers in tech and other fast-evolving industries. This was proposed in our UK Tech Plan, where we called for the establishment of a Single Enforcement Body to help employers, employees and their representatives comply with the law. As well as being adequately funded, any such agency should have a stated remit covering both the formal and gig economy, and incorporate relevant powers and remedies from the existing labour market enforcement authorities.
Another provision influenced by techUK's feedback is the right to request flexible working from day one, where reasonable. We have long advocated for this to be added to day one rights. techUK is glad to see many of it's recommendations being put into action, but capitalising on shifts towards flexible working and reaping the benefits for people and places across the country will require a more strategic approach than we have seen thus far.
Alongside the published Bill, government has published a Next Steps to Make Work Pay document which summarises what further measures will be considered in the later phases of the plan's implementation. This includes commitments to consult on a 'simpler framework' for worker status, and on workplace surveillance technologies.
Much of the Bill will take more than two years to consult on and implement. If the government is serious about growth, it will be imperative to implement these changes in a manner that maintains business confidence and minimises any potential friction in the labour market.
Antony Walker, techUK's Deputy CEO said:
"Improved working conditions, pay and productivity increases depend not just on new legislation, but also on businesses being able to invest in their workforce and the technologies that support them in their day-to-day jobs.
"As the government consults on this significant package of reform it must find the right balance. These reforms should look at providing legal protections for workers, but avoiding overly complex or inflexible regulation that could slow down the creation of new jobs and the employment of people from a range of backgrounds.
"If this balance is struck, there is the opportunity here for a win-win: enabling businesses to raise their productivity by introducing of new technologies, improving training, and providing better working conditions for their employees. techUK and our members look forward to working with the government on these proposals as they are developed."
Authors
Nimmi Patel
Nimmi works on all things skills, education, and future of work policy, focusing on upskilling and retraining. Nimmi is also an Advisory Board member of Digital Futures at Work Research Centre (digit). The Centre research aims to increase understanding of how digital technologies are changing work and the implications for employers, workers, job seekers and governments.
