Labour’s flagship Work Rights Bill has cleared its final parliamentary hurdle and is due to come into force before Christmas, marking the most significant expansion of workers’ rights in a generation.
The bill passed its final phase in the House of Lords after Conservative counterpart Lord Sharpe, the shadow business and trade secretary, withdrew a last-minute amendment during parliamentary ping-pong. The move removed the final obstacle to the bill’s passage.
Prime Minister Sir Keir Starmer hailed the moment as an important milestone for staff across the country.
“This is a huge victory for working people across the country,” he said. “We have just introduced the biggest improvement to workers’ rights in a generation. Today our plans have passed through Parliament and will soon come into force.”
The bill applies to England, Scotland and Wales, but not Northern Ireland, and is expected to receive royal assent later this week. Most of its measures require secondary legislation before they come into force.
Under the new law, employees will have access to statutory sick pay and paternity leave from their first day of work. The legislation also introduces increased protections for pregnant women and new mothers.
Labor originally promised to give workers the right to claim unfair dismissal from day one, but backed down in November amid concerns from business groups. Instead, extended protection against dismissal should apply after six months of employment – currently the most significant reform in the bill.
Trade unions welcomed the passage of the bill but warned against further watering down. Unite general secretary Sharon Graham said it must now be implemented “without further dilution or delay”.
“The bill has already been watered down far too much, not least by failing to ban fire and rehire contracts and zero-hours contracts,” she said.
TUC general secretary Paul Nowak described the vote as a “historic day and an early Christmas present for working people across the country”.
“Thanks to this law, working people will finally enjoy greater security, better pay and dignity in the workplace,” he said, calling on the government to implement the reforms “swiftly.”
However, Conservatives criticized the timing of the legislation, arguing that it would harm employment.
“It is ironic that Labour’s job-destroying unemployment law was passed on the same day that official figures confirmed that unemployment has risen every month since the government was in office,” a party spokesman said, pointing to data that showed unemployment rose to 5.1 percent in the three months to October.
Shadow business secretary Andrew Griffith warned the bill would “increase costs for small businesses, freeze hiring and ultimately leave young people and jobseekers paying the price”.
Business groups including the British Chambers of Commerce and the Federation of Small Businesses said earlier this week that they remained concerned about certain aspects of the reforms, but accepted that the bill should now be passed as the six-month waiting period was retained to provide certainty.
Labor lawyers said employers should now shift focus from speculation to implementation.
Florence Brocklesby, founder of Bellevue Law, said: “Regardless of views on the pros and cons of the reforms, employers will welcome the certainty and ability to plan. Implementation should be treated as a major project, with sufficient resources for senior management and HR.”
She warned that the new six-month notice period for unfair dismissals would require stricter recruitment processes and early performance management, while lifting the pay cap would be paramount for employers with large numbers of highly paid employees.
Jo Mackie, employment partner at Michelmores, raised concerns about unlimited compensation claims for unfair dismissal, saying they could “promote claims and scare employers” and potentially deter recruitment.
Dave Chaplin, chief executive of ContractorCalculator, said the reforms risk reducing permanent employment numbers at small businesses.
“For SMEs, a six-month cliff dramatically increases hiring risk,” he said. “The irony is that while the bill strengthens protections for people already working, it increases the barriers for people who want to find a job.”
With royal assent imminent, employers and employees alike are preparing for one of the biggest changes to workplace regulation in decades – the real impact will unfold as the reforms are phased in.
