UK has some of the ‘weakest’ workers’ rights in the Western world. Can Labour fix this?

The UK has among the worst workers’ rights protections in the Western world, experts have warned – but “fair pay agreements” (FPAs) could help fix this.

Labour’s flagship workers’ right package is currently making its way through parliament. The government has pledged to toughen protections for people on zero-hours contracts, entitle agency workers to compensation for cancelled shifts, and punish union-busting employers.

Announcing 250 new amendments to the bill on Tuesday (4 March), deputy prime minister Angela Rayner described the bill as “the biggest upgrade to workers’ rights in a generation”.

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“For too long millions of workers have been forced to face insecure, low paid and irregular work, while our economy is blighted by low growth and low productivity,” she said. 

These changes have been disparaged by business bodies – but warmly welcomed by unions.  Nonetheless, they may not go far enough, experts and campaigners have said.

“The fundamental problem that we’ve got in the UK is that our labour rights are weaker than any other Western democracy, bar the US,” warned Ewan McGaughey, a professor of labour law at King’s College London. 

“Many of the provisions [in the Employment Rights Bill] are welcome, but the long term problem is that you need what we call fair pay agreements.”

Under fair pay agreements – a form of collective bargaining arrangements – representatives of workers and employers negotiate minimum standards for pay and terms and conditions for their sector. Labour have proposed an FPA for the adult social care sector – but every other sector has been excluded.

What changes have been announced to the Employment Rights Bill?

When Labour published the landmark legislation last year, it touted it as “transformative” for employee rights. Changes included a statutory right to flexible working and a ban of “unscrupulous” fire and rehire practices: the Big Issue dug into the details of the bill here. 

Labour announced a flurry of amendments yesterday. These included higher sick pay for low-paid workers than previously expected and bereavement rights for parents who have suffered a miscarriage before 24 weeks gestation. 

Agency workers on zero-hour contracts will also be eligible for compensation if their shifts are cancelled without notice. Scroll down for a more detailed list of changes.

The amendments will benefit the most vulnerable people in society the most, said Nye Cominetti, principal economist at the Resolution Foundation. 

“While all workers are covered by new rights and expanded sick pay, in reality low-paid workers stand to gain most as their job security is far lower than that enjoyed by middle and higher earners,” he said.

One-in-12 of the poorest fifth of workers are currently employed on a zero-hours contract, making them more than ten times as likely to be on one as high earners.

The Recruitment and Employment Confederation (REC) warned that the changes could “undermine” the “flexibility” that zero-hour contracts offer some workers.

But Ben Harrison, director of the Work Foundation at Lancaster University, said it would help end the endemic precarity of Britain’s labour market – particularly for young people. 

Workers aged 16-24 are 5.9 times more likely to be on zero-hour contracts than older workers

“The news that the proposed ban of exploitative zero-hours contracts will include agency workers suggests [that] government intends to resist pressure to dilute reforms,” he said. 

“Currently, more than a million workers face unpredictable hours due to these contracts, undermining their financial stability and health. This reform will help ensure workers enter a labour market where good jobs offer both security and flexibility.”

What’s not in the workers’ rights bill?

Nonetheless, parts of the bill represent a “missed opportunity,” McCaughey said. One significant omission is the fair pay agreements across all sectors.

In its New Deal for Working People, Labour promised to “establish a fair pay agreement in adult social care, to drive up pay and conditions” and to “assess how and to what extent fair pay agreements could benefit other sectors and tackle labour market challenges”.

The bill will cover adult social care workers with a fair pay agreement.

“What the government has said is that they want to test it there, see how it goes, and then maybe they’ll do something for everyone else,” McCaughey explained. “But there is no reason to delay at all.”

“What we want is collectively agreed pay-standards across all jobs. So if you go to Denmark, Sweden, Norway, all the rich countries – in more equal countries, then that’s what they have.”

The bill also fails to create a “single status of worker”, a reform that would see Uber drivers and other self-employed gig economy workers gain rights like sick pay.

Before the election, Labour promised to implement this reform. But for now, it’s been excluded from the bill. 

“They’re waiting for another review to see whether we get a single status of worker,” McGaughey said. “So it remains the issue that not enough people are covered by labour rights.”

Cominetti from the Resolution Foundation urged the government to consolidate their planned reforms by providing “greater clarity over workers’ employment status”.

What are the new amendments to the Employment Rights Bill – and how will they impact you?

Despite certain failures, it’s clear that the government’s reforms will significantly alter the world of work. Some of the most significant amendments announced on Tuesday (4 March) are:

Fire and rehire

Companies that “fire and rehire” – dismiss someone and reemploy them on more favourable terms – will cop a serious fine. They may have to pay workers 180 days of pay in compensation, double the current penalty. 

Sick pay

The plan outlines an entitlement for sick pay from a worker’s first day in a job. At present, employees are not entitled to sick pay until the fourth day that they are unwell.

Currently, people earning less than £123 a week cannot claim sick pay. But the amendments tabled today would see them entitled to 80% of their average weekly earnings or statutory sick pay (£116.75) per week – whichever is lowest.

Trade unions and Fair WorkAgency

Currently, workers have to give their employer 14 days notice of strike action; the bill will lower that to 10 days. 

The government may also lower barriers to union recognition in a work place. At present, there can be a ballot for union recognition if 10% of the workforce is a member of a union. The government considered lowering it to 2%; the amendment tabled today will give the secretary of state the authority to lower the 10% threshold.

Another amendment will give the Fair Work Agency, or FWA, more power to crack down on exploitative practices. It will “be given real teeth to act as an enforcement body to protect workers”, said Caspar. 

“It will be empowered to act to enforce holiday pay and to take punitive action where companies fail to keep adequate records on it. It will also be able to bring civil proceedings in the employment Tribunal and will be able to recover costs and charge penalties where laws are broken.”

Employers that block union access to workplaces will be fined. 

The FWA will be able to “obtain communications data and carry out surveillance and covert intelligence as part of its investigations”.

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