On 12th August 2024, in response to a written question, Baroness Jones of Whitchurch confirmed that the Government will deliver its Plan to Make Work Pay in full.
What will change under the Plan to Make Work Pay?
The plan includes:
- An extension to day one employment rights to include parental leave, sick pay and protection against unfair dismissal
- Making flexible working the default position for all workers
- Updating trade union legislation and simplifying the process of statutory recognition
- Banning zero-hour contracts
- Ending fire and re-hire practices
- Removing the age bands that apply to National Minimum Wage and the National Living Wage and establishing a single adult rate
- A move towards a single status of worker and transition towards a simpler two-part framework for employment status that differentiates between workers and genuinely self-employed people
- The timeline for employees to bring employment tribunal claims being extended from 3 months to 6 months, in line with the Law Commission recommendation made in April 2020.
What happens next?
Baroness Jones confirmed that ministers are identifying the best way to deliver the plan. The Employment Rights Bill will likely contain the majority of the proposals outlined above and is set to be introduced within the first 100 days of government.
The Government has also extended the Low Pay Commission’s remit to recommend an increased National Living Wage which will apply from April 2025. This will take into account the cost of living for the first time.
Steps are also being taken to recommend a National Minimum Wage rate for 18 to 20-year-olds to narrow the gap with the National Living Wage, a clear step towards achieving the Government’s ultimate aim of a single adult rate.
The Employment Rights Bill should be introduced by 13th October 2024 and may be subject to amendments as it progresses through both Houses of Parliament. This could take several months, so it is unlikely that changes brought in by the Bill will come into effect before early 2025.
The Government has described their proposals as the “biggest upgrade to workers’ rights in a generation.” Employers can expect to see significant changes to employment law in the coming months.
Where can I see the plan in more detail?
You can view the full Plan To Make Work Pay here.