The King’s Speech: key employment takeaways

In the King's Speech on 17 July 2024, the new labour government set out its agenda for the next few months, as part of which there is much employment related change on the horizon. 

What changes can we expect? 

The Government has confirmed that they are set to introduce two new employment related bills: 

• An employment rights bill; and 
• A draft equality (race and disability) bill. 

The employment rights bill is likely to include the following changes: 

• Rights to parental leave, sick pay and protection from unfair dismissal will become a day one right and employees will no longer need to have qualifying service (subject to special rules for probationary periods). 
• A ban on the use of zero-hour contracts. 
• The ending of "fire and rehire". 
• Removal of the lower earnings limit and waiting period for statutory sick pay. 
• The ability to work flexibly will become the default position for all workers and employers will be required to accommodate flexible working as far as is reasonable. 
• Enhanced protection for new mothers. 
• The creation of the Fair Work Agency to enforce workplace rights. 
• Reform to laws relating to industrial action. 

Of the above, the most significant change is likely to be the removal of the requirement for qualifying service before employees can present a claim for unfair dismissal. At present, subject to some limited exceptions, employees must have two years' service before they are able to bring such a claim. 

The draft equality (race and disability) bill is likely to include the following changes: 

1. A statutory right to equal pay for ethnic minorities and disabled people. 
2. The introduction of mandatory ethnicity and disability pay reporting for employers with more than 250 employees. 

When are the changes likely to come into effect? 

At present, it is not clear when the draft equality (race and disability) bill, is likely to come into effect. 

The Government has indicated that the employment rights bill will be introduced within the first one hundred days of the new government (which is in October). However, it is likely to take several months before the bill is finalised and becomes law. As such, employers and employees alike are unlikely to have to grapple with the changes until the new year.