Sir Keir Starmer has pledged to “level up workers’ rights” via a series of employment reforms included in the King’s Speech.
The Prime Minister vowed to deliver “security, respect and dignity at work” for “every person”, as his government unveiled an Employment Rights Bill.
It marks the legislative framework for Labour’s so-called New Deal for Working People – promised in its 2024 manifesto – and now dubbed the government’s plan to make work pay.
King Charles said: “My government is committed to making work pay and will legislate to introduce a new deal for working people to ban exploitative practices and enhance employment rights.”
Sir Keir said: “We will level up workers’ rights, so every person has security, respect and dignity at work, we will create a new industrial strategy and invest in cleaner, cheaper British energy, and we will harness the power of artificial intelligence as we look to strengthen safety frameworks.”
The Employment Rights Bill is intended to create a new partnership between business, trade unions and workers, and the government has pledged to bring it forward within 100 days.
It has sparked backlash from businesses and lobby groups, including the CBI chief Sir Rupert Soames, and then further outcry from trade union leaders over the apparent watering down of measures in light of many firm’s scrutiny of Labour’s proposals.
Promised reforms include banning exploitative zero-hour contracts, ending fire and rehire, and making parental leave, sick pay and unfair dismissal protection available from day one.
But the government says it will still continue to ensure firms can operate probationary periods for new hires.
The bill is also expected to contain measures to make flexible working the “default from day one”, to boost protections for new mothers, establish a Fair Work Agency to act as the single enforcement body, and establish a fair pay agreement in the social care sector.
Trade union legislation will also be updated to be “fit for a modern economy”, the government added, including “removing unnecessary restrictions on trade union activity”.
Labour also says that in addition to these measures it will deliver a “genuine living wage” and remove “discriminatory” age bands.
Following the speech, Jack Kennedy, senior economist at jobs website Indeed, said a crackdown on zero-hours contracts “was among the top job-related concerns” in the run-up to the election, and “could signal a move in the right direction for many workers”.
He added that “addressing wage concerns” was another key element of the government’s manifesto pledges and said: “This will come as a boost for lower-paid sector workers, which continue to drive UK wage growth.”