Committees

BTC launches major new inquiry into flagship Employment Rights Bill

1 November 2024

The newly re-formed Business and Trade Committee is launching its first call for evidence in a major new inquiry into the Government’s flagship Employment Rights Bill.

The new Government has announced a comprehensive overhaul of employment law in what it is calling the ‘biggest upgrade to workers’ rights in a generation.’  The ‘Plan to Make Work Pay’ sets out the Government’s agenda to boost wages, reduce insecure work and grow Britain’s economy. 

Chair quote

Chair of the BTC Rt Hon Liam Byrne said: “The employment rights bill is one of the flagship reforms proposed by the new government. Many of its proposals were inspired by the malpractice exposed by our committee in firms like P&O. That’s why we’re determined to explore how to make sure this new Bill is good for our economy, stops bad firms undercutting the good and provides the right protections and voice for workers in our 21st century economy.”

The Bill currently passing through Parliament sets out to: 

  • Ban exploitative zero-hours contracts  
  • End ‘Fire and Rehire’ and ‘Fire and Replace’  
  • Make parental leave, sick pay and protection from unfair dismissal a day one right  
  • Strengthen statutory sick pay  
  • Make flexible working the default from day one  
  • Strengthen protections for pregnant women and new mothers returning to work   
  • Strengthen protections from sexual harassment at work  
  • Strengthen legislation around the allocation of tips  
  • Strengthen protections around collective redundancy  
  • Introduce a new right to bereavement leave  
  • Establish a new Single Enforcement Body, called the Fair Work Agency  
  • Establish Fair Pay Agreements in the adult social care sector  
  • Reinstate the School Support Staff Negotiating Body  
  • Upgrade Trade Union legislation 

The Committee is launching this inquiry, which will take written and oral evidence with a view to informing the later stages of the Bill’s passage through Parliament, to help assess whether it will achieve these aims.

Areas to consider include: 

  • How the Bill will contribute to the Government’s stated goal of achieving the fastest growth in the G7
  • Whether the Employment Rights Bill will adequately protect workers, improve security at work and raise living standards in every part of the country 
  • The impact the Bill will have on businesses, in particular investment rates, start-up rates, the supply of labour and the employment rate
  • How to ensure adequate protection against exporting poor labour standards, including concerns over forced labour in international supply chains

The Business and Trade Committee is now inviting all interested individuals and organisations to submit written evidence in the following areas:   

Protecting workers  

  • Does the Employment Rights Bill adequately safeguard the workers it seeks to protect?  
  • Are there weaknesses or loopholes in the Bill that could be exploited or have unintended consequences?  
  • Are there areas of employment law not covered by the Bill that weaken workers’ protections?  
  • Can the measures in the Bill be adequately enforced? What are the barriers to setting up a Single Enforcement Body (Fair Work Agency) and how can these challenges be overcome?  
  • Will the proposed trade union reforms improve working relationships between workers and businesses, and hence, productivity and enable voice at work?  

Impact on businesses  

  • What impact will the areas covered by the Employment Rights Bill have on small, medium and large businesses?  
  • What impact will these measures have on staff retention, hiring practices, probationary periods and wages?  
  • How will other areas set out in the Plan to Make Work Pay impact businesses?  
  • What impact will strengthened protections, such as day one rights, have on the hiring practices of businesses, UK employment rates and UK investment rates?  
  • To what extent could the Employment Rights Bill cause businesses to offshore employment and continue with weaker workers’ protections abroad?  

Economic growth and wealth creation

How will the Plan to Make Work Pay impact:  

  • Economic growth?  
  • Productivity levels?  
  • Rates of investment?  
  • Business start-up rates?  
  • Supply of labour?  
  • Employment levels?  
  • Incomes?  
  • Household wealth?  
  • What solutions or actions are required by Government, businesses and workers to effectively support the labour market while boosting productivity and protecting workers’ rights? 

Submit evidence

If you have evidence on any or all of these questions please submit it by Friday 6 December 2024 through the evidence portal on the BTC website.

Please have a look at our guide to submitting written evidence and if you require assistance to submit your evidence you can find more information under the same page.

Further information

Image credit: UK Parliament