by Emma Hand, Legal Intern
Following Labour’s win in the General Election, the King has delivered a speech to the nation to mark the beginning of a new political session. The purpose of the speech is to reveal the new government’s agenda and to address new policies that will be worked on by them. Delivery is always in a ‘neutral’ tone, to maintain the apolitical nature of the monarch.
This speech addressed bills across various sectors. The sectors that were mentioned are real estate, public sector, employment, pensions, financial services, future energy, retail, leisure, digital, commercial dispute resolution, and corporate governance. These bills aim to ‘take the brakes off Britain’ and propel the country forward, both socially and economically. However, in this article the focus will be on employment and pension bills.
What does the Employment Rights Bill entail?
- Ban on Zero-Hours Contracts: Restrictions around not giving an employee an ensured number of hours.
- End to Fire and Rehire: Stops the dismissal and re-employment of workers with worse terms.
- Enhanced Worker Rights: Workers have rights from day one in their job.
- Protection from Unfair Dismissal: Putting a stop to a dismissal that is unjust, a right from day one.
- Strengthened Statutory Sick Pay (SSP): Better SSP means better support for ill employees.
These new policies benefit workers by increasing job security, a pressing issue in modern society. Labour believes in the initiative of ‘making work pay,’ by this they have intent to ensure workers in the UK are provided sufficient income for the work they have done and to help reduce poverty levels, by providing consistent income for example.
Additionally, on the topic of employment, the speech included another bill titled the Draft Equality (Race and Disability) Bill, which includes:
- Equal Pay for Ethnic Minorities and Disabled People: The right of equal pay for everyone, no matter their characteristics, in law.
- Mandatory Pay Reporting: Requires companies to report on ethnicity and disability pay gaps, to ensure transparency and accountability.
Again, these aspects of this bill will benefit workers that are of an ethic minority and/ or are disabled. Labour’s recognition of inequalities in pay from person to person will help ensure that work does not make people feel inferior to others doing the same job, because of their characteristics. Furthermore, making work more equal promotes a sense of stability in the working environment, which is crucial when trying to economically accelerate the UK’s economy, as Labour aim to do.
In addition, a new bill surrounding pensions was mentioned (called the Pension Scheme Bill), this included:
- Increase in Pension Savings: An initiative to increase pension savings for average earners, potentially adding over £11,000 to their pension savings.
- Improved Retirement Income: Improves the financial security of retirement by increasing the amount available to those who have retired, in pension funds via defined contribution schemes.
This bill will again be beneficial as it will increase the economic security of workers, within their pensions. The potential addition of £11,000 will be helpful to retirees in a period in which we do not know what the cost of living will be like in the future.
To conclude, the King’s Speech, which had a record 40 bills proposed, gave a clear idea that workers are at the heart of Labour’s plans to further the UK’s development, giving a sense of reassurance to workers that they will not be left behind during this stage of ‘building Britain up’, but rather they will help pave the way.
