Ban on ‘exploitative’ zero-hours contracts won’t happen until 2027

By Andrew Quinn

Ban on ‘exploitative’ zero-hours contracts won't happen until 2027

A ban on “exploitative” zero-hours contracts and “day-one” protections against unfair dismissal will not come into force until 2027. UK Government ministers have opted for a “phased” rollout of the changes to balance workers’ rights with “the practical realities” of running a company. Prime Minister Keir Starmer has hailed the Government’s flagship Employment Rights Bill as “the single biggest upgrade to workers’ rights in a generation”. Its measures include bolstered rights to parental leave, a crackdown on “fire and rehire” practices and the removal of the lower earnings limit and waiting period for statutory sick pay. Under plans outlined in a “roadmap” published by the Government on Tuesday, some changes will be implemented immediately after the Bill receives royal assent. But others will take two years to come into effect. After the legislation has passed, Conservative-era rules restricting industrial action in sectors including health and education will be abolished as the Strikes (Minimum Service Levels) Act 2023 will be instantly appealed. New protections against dismissal for striking workers will also come into effect after the Bill makes it onto the statute books. Changes to sick pay, protections for whistleblowers, “day-one” paternity leave and unpaid parental leave and reforms to strengthen financial security for staff facing mass redundancies will take effect in April 2026. In October 2026, measures to end “unscrupulous” fire and rehire practices, tightened tipping laws aimed at ensuring workers take home a fair proportion of gratuity will be implemented, the Government said. Measures to strengthen right of access for trade unions and protect employees from harassment are now also due to come into effect next October under the roadmap. Finally in 2027, the Government says it will have implemented full gender pay gap and menopause action plans, bereavement leave, a ban on the “exploitative” use of zero-hours contracts. It will also bring in “day-one” rights to protection against unfair dismissal, improved access to flexible working, and strengthened protections against dismissal for pregnant women and new mothers. Business Secretary Jonathan Reynolds said: “By phasing implementation, our collaborative approach balances meaningful worker protections with the practical realities of running a successful business, creating more productive workplaces where both employees and employers can thrive.” GMB general secretary Gary Smith said: “GMB members now know when these much-needed improvements will happen – we urge good employers not to wait; do the right thing and make these changes a reality today.” To sign up to the Daily R ecord Politics newsletter, click here

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