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.