New UK government closes in on major employment reform

Britain’s new Labour government will on Thursday take a key step towards delivering major reforms to workers’ rights when it presents its employment bill to parliament, pitting unions against businesses.

Almost 100 days since Keir Starmer became prime minister following his Labour party’s landslide general election win, Britain gets to see the fine detail of the government’s proposed shakeup to employment legislation.

The bill contains key pre-election pledges, including a ban on zero-hours contracts, improvements to sick and maternity pay, and measures aimed at making it harder for employers to sack staff.

“The government will deliver on our promise to the British people of the biggest upgrade to workers’ rights in a generation,” Starmer told parliament Wednesday.

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Since winning power in early July, Labour has acted swiftly to end drawn-out strikes by public- and private-sector workers over pay — notably among doctors in Britain’s free National Health Service (NHS).

“The Employment Rights Bill will ensure work pays, it’ll forge a new partnership with business, and reset the dreadful industrial relations that have cost our economy and our NHS so much in recent years,” Starmer added Wednesday.

Paul Nowak, leader of British umbrella organization the Trades Union Congress, said a fully delivered bill “will make work better for millions of working people”.

He added on the eve of the paper’s unveiling: “Increasing job security is good for workers and business. Treating staff well boosts productivity and living standards.”

But the main opposition Conservatives have warned the proposals amount to business-constricting “French-style union laws”.

Tina McKenzie, whose organization represents millions of UK businesses, warned that “adding to the risks and costs associated with employing people would make small employers think twice about whether and who to hire”.

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“Done wrongly, this bill could damage growth, wages and jobs,” added McKenzie, policy chair at the Federation of Small Businesses.

The bill’s publication comes ahead of Labour’s maiden budget on October 30, when finance minister Rachel Reeves is widely expected to announce tax rises.

Labour says tough measures are needed and claims that the Tories left it with a financial hole totalling £22 billion ($29 billion).