30 May 2025

Good Jobs Bill

This is a summary of the Minister’s Announcement on 28th April 2025. It is important that Members be aware of the possible changes coming.

 1. Terms of Employment

  • Zero Hours Contracts: Limited to genuinely casual or seasonal work. Right to banded hours reflecting actual work patterns; protections for shift cancellations.
  • Extension of Rights: Written terms of employment to be provided from day one to both workers and employees.
  • Fire and Rehire: Restricted to situations where business viability is at risk.
  • Collective Redundancies: Stronger compliance and inclusion of workers at sea.
  • Agency Workers: Enhanced clarity on terms and abolishment of the “Swedish derogation” (equal pay loophole).

 2. Pay and Benefits

  • Right to Disconnect: Introduction of a statutory Code of Practice.
  • Tips: Mandatory full pass-through of tips to workers.
  • Payslips: Mandatory for all, including breakdown of hours for hourly workers.
  • Holiday Pay: Reference period extended to 52 weeks to ensure fairness.

 3. Voice and Representation

  • Trade Union Recognition: Threshold reduced from 21 to 10 employees.
  • Workplace Access: Unions gain the right to engage with workers.
  • Electronic Balloting: Allowed for trade union votes.
  • Balloting Requirements: To be simplified and sanctions reviewed.
  • Industrial Action Protection: 12-week dismissal protection limit removed.
  • Information Requests: Threshold for triggering formal agreements reduced to 2% (min 10 workers).

 4. Work-Life Balance

  • Flexible Working: Becomes a Day One right; up to two requests per year.
  • Carer’s Leave: One week unpaid, with potential for future paid entitlement.
  • Neonatal Leave: Up to 12 weeks paid leave for parents of babies in neonatal care.
  • Paternity Leave: Increased flexibility, longer eligibility window, and reduced notice.
  • Pregnancy & Parental Return: Enhanced protections from redundancy or dismissal.

Next Steps

  • Executive endorsement is being sought.
  • Bill to be finalized within current mandate (2 years).
  • Engagement and phased implementation planned, with training support via Labour Relations Agency.

There is a downloadable version of this summary below.

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