Advertisement
Christmas Special - Get your first 12 issues for just £12
SUBSCRIBE
Employment

Yes, Labour's workers' rights bill is an upgrade. But the UK still has a lot of catching up to do

The Employment Rights Bill marks a big shift for UK workers. But how much will change? University of Birmingham's Tony Dobbins explores

A health worker wearing PPE

A health worker during Covid wearing PPE that wasn't destroyed or written off. Image: UK government

The Labour government’s new Employment Rights Bill undoubtedly heralds a significant boost in workers’ rights after 14 years of Conservative government espousal of a liberalised flexible labour market model – translated as let the market run its course/let people do as they choose. The problem with this ‘survival of the fittest’ model is that it has created too much in-work poverty, insecurity, precarity, low pay and destitution for far too many people.

As the first phase of delivering the Plan to Make Work Pay, the Employment Rights Bill contains numerous proposals on mainly individual employment rights reforms, including: a new Fair Work Agency for stronger enforcement, better statutory sick pay, protection against unfair dismissal from day one (rather than two years at present, although it seems that there will be a nine-month probationary period for new recruits), a cost of living measure for setting the minimum wage, and making flexible working the default where practical.

Regarding collective employment rights, the government has promised new rights to online union balloting, union access to workplaces, simplification of the union recognition procedure, and to repeal anti-trade union laws enacted by the Conservatives in recent years. It also contains proposals for collective bargaining/negotiating bodies for adult social care and school support staff.

Will the Employment Rights Bill support employer relations?

Elements of the employer community will likely be concerned about the extent and impact of the new rights envisaged. A more positive (or ‘beneficial constraints’) perspective is possible, however, if the new rights are framed as supporting better employers/employment relations and constraining a race to the bottom by more exploitative employers.

Nonetheless, it could take two years or more before we see some of these rights taking effect in workplaces, with further consultations likely and more detail needed to put flesh on the bones of many proposals.

What is missing or diluted in the Employment Rights Bill?

Advocates of stronger workers’ rights will also likely be wary that original proposals on banning zero hours contracts and fire and rehire have apparently been diluted under pressure from business lobbying, with potential loopholes.

Advertisement
Advertisement

Other “wider reforms” are not included in this Employment Rights Bill and have been put on the long finger. Consequently, alongside the legislation, a ‘Next Steps to Make Work Pay’ document has been published, which also outlines some longer-term proposals. This includes guidance (a code of practice) – which is not mandatory – on the right to disconnect from work, and consultation on a move towards a single status of worker (one of the most notable proposals left out of the Employment Rights Bill).

There is lack of clarity on other collective employment rights initially promised by Labour, notably extending sectoral collective bargaining more widely across the foundational economy. This is significant because stronger collective rights are most likely to shift the balance of power in employment relationships.

Other collective employment rights that are missing altogether from government policy documents include board-level worker directors, and stronger rights to form works councils/codetermination forums.

Upgrading from a low regulatory base?

There is some truth when the government claims it is “delivering the biggest upgrade to rights at work for a generation”, yet the UK has a long way to catch-up on employment rights, as measured by The Centre for Business Research Labour Regulation Index (CBR-LRI). The UK currently has one of the most lightly regulated labour markets among advanced economies, notably in a European comparative context.

The test will be how many of the original proposals in the New Deal for Working People remain intact and operational in practice across UK workplaces and improve work and working lives. The risk is that – with workers’ rights starting from such a weak regulatory base – if the Government goes too far to appease business the new framework will be too weak to rebalance power relations at work and shift the dial on one-sided flexible labour markets.

Prisoners of economic orthodoxy?

An important issue will be how the new employment rights framework intersects with economic policy issues, notably whether Labour is serious about pursuing a good jobs agenda and investing in an industrial strategy for the everyday economy in UK regions and repairing public services. Concerns have been expressed that the Treasury appears intent on continuing Conservative austerity and economic orthodoxy (including rigid fiscal/debt rules holding back much needed investment). If so, this would jeopardize the investment required to support better jobs in regional economies like the Midlands and the North of England.

The Budget on 30 October should provide more clarity on the government’s economic direction and how this might impact and interrelate with possibilities for better work and employment rights. 

Tony Dobbins is a professor of work and employment relations at the University of Birmingham.

Big Issue is demanding an end to extreme poverty. Will you ask your MP to join us?

Do you have a story to tell or opinions to share about this? Get in touch and tell us more. Big Issue exists to give homeless and marginalised people the opportunity to earn an income. To support our work buy a copy of the magazine or get the app from the App Store or Google Play.

Advertisement

Change a vendor's life this Christmas

This Christmas, 3.8 million people across the UK will be facing extreme poverty. Thousands of those struggling will turn to selling the Big Issue as a vital source of income - they need your support to earn and lift themselves out of poverty.

Recommended for you

View all
Disabled people losing jobs and 'falling out of work' due to months-long waits for DWP support
disabled person working
Disability rights

Disabled people losing jobs and 'falling out of work' due to months-long waits for DWP support

Pay boost for millions as Labour raises minimum wage to £12.21 an hour – but is it enough?
Minimum wage

Pay boost for millions as Labour raises minimum wage to £12.21 an hour – but is it enough?

Pay rise for thousands of workers as Real Living Wage rises to £12.60 an hour – but is it enough?
real living wage

Pay rise for thousands of workers as Real Living Wage rises to £12.60 an hour – but is it enough?

DWP wants to send job coaches into mental health hospitals. Here's why it's a 'dangerous' idea
Employment

DWP wants to send job coaches into mental health hospitals. Here's why it's a 'dangerous' idea

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Cost of living payment 2024: Where to get help now the scheme is over
next dwp cost of living payment 2023
3.

Cost of living payment 2024: Where to get help now the scheme is over

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know
4.

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know