The 2024 King's Speech introduced several pivotal bills aimed at, among many other reforms, revolutionising employment in the UK. These initiatives underscore Labour's commitment to improving workers' rights, job security, and overall workplace conditions, marking one of the most significant overhauls in recent years.

What we can expect

Updates to the Employment Rights Bill

The bill bans exploitative zero-hour contracts, ensuring workers have more predictable and stable employment terms. This move aims to provide greater job security and financial stability for many workers who have faced uncertainty under such contracts. Businesses will need to offer more predictable and stable employment terms. Companies that rely on flexible staffing models will need to adjust their workforce management strategies to comply with the new regulations

The legislation prohibits the controversial "fire and rehire" practices, where employers dismiss employees only to rehire them under less favourable terms. This change seeks to protect workers from unfair treatment and sudden contract changes that disadvantage them and will mean organisations will have to adopt a more thoughtful approach to restructuring and contract negotiations, ensuring that any changes in employment terms are fair and just.

A new bill to introduce measures to make parental leave and statutory sick pay available from day one of employment. This policy is designed to support workers from the start of their employment, promoting a more inclusive and supportive work environment. Businesses must prepare for immediate compliance as this will impact payroll management and require updated onboarding processes to ensure that new hires are aware of their rights from day one.

Living Wage and Minimum Wage Adjustments

Reforms to the Low Pay Commission will ensure that the minimum wage becomes a genuine living wage, aligning it more closely with the cost of living. This initiative aims to improve the standard of living for low-wage workers across the UK. Labour costs will increase for some organisations which may lead to price adjustments for goods and services.

By providing basic employment rights from the first day of work, the legislation ensures that all employees have immediate access to protections and benefits, fostering a fairer workplace from the outset.

Support for Pension Savers

The Pension Schemes bill targets the 15 million people saving in private-sector pension schemes. It proposes measures to consolidate multiple pension pots automatically and introduces a new framework to enhance the amount available for retirement, potentially saving the average earner over £11,000 in their pension pots. Companies will need to ensure compliance with new regulations and possibly offer more attractive pension benefits to retain talent.

Skills and Training Initiatives

Establish Skills England to create a new partnership with employers to enhance workforce training and development. This initiative aims to address skill gaps and ensure that workers are well-prepared for the demands of modern industries. The emphasis on skills training and development will require businesses to invest more in employee training programs. Partnerships with educational institutions and training providers will become essential to ensure that the workforce meets evolving industry demands.

Reform of the Apprenticeship Levy to make the apprenticeship system more effective and responsive to the needs of both employers and apprentices, thus supporting continuous skill development and career progression.

The legislative changes introduced in the King's Speech 2024 reflect a comprehensive approach to improving the UK’s economic and social landscape. Businesses will need to adapt to new employment laws, wage adjustments, and economic policies that promote stability and growth. While these changes present challenges, they also offer opportunities for businesses to innovate, invest in their workforce which in turn will contribute to a more equitable and sustainable economy.

If you’d like to discuss the above, get in touch with myself or a member of the team via info@cathedralappointments.co.uk.

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