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Ministers will on Tuesday unveil amendments to their employment rights bill that will beef up protections for workers in key areas such as zero-hours contracts, despite having pledged to listen to business concerns when finalising the measures.
More than 200 new amendments to the employment rights bill will be published on Tuesday, fleshing out the details of some of those policies that are designed to tilt the balance of power from bosses to workers.
Employers are concerned that the sweeping package — including greater rights for trade unions and a crackdown on practices such as zero-hours contracts and “fire and rehire” — will drive up costs on top of the increases in taxes and minimum wage rates they already face from April.
The government said last month that business leaders were “pushing at an open door” in their attempts to water down some elements of the employment rights bill.
Angela Rayner, deputy prime minister, said the bill was aimed at “turning the tide” on an economy “blighted” by insecure work, low growth and low productivity. Jonathan Reynolds, business secretary, said the aim was to fulfil “the UK’s full potential by attracting the best talent and giving business the confidence to hire”.
The changes “carefully consider different views and needs of workers, businesses and the whole economy”, the government added on Tuesday.
But several of the fresh changes to the package will beef up the rights of workers even further, according to people with knowledge of the details.
These amendments include higher sick pay for low-paid workers than previously expected, higher penalties imposed on companies that use “fire and rehire” practices, stronger rights to bereavement leave after miscarriages, and the inclusion of agency workers in the looming ban on “exploitative” zero-hours contracts.
Agency workers will have to be offered a contract guaranteeing a minimum number of hours each week, and those on zero-hours contracts will be made eligible for compensation if their shifts are changed at short notice.
Another amendment will give parents the right to two weeks of bereavement leave after suffering a miscarriage before 24 weeks’ gestation. Parents already have a right to bereavement leave in cases where they have lost a child after then.
The changes will also ban employers from “flooding” workforces to try to influence the process of union recognition ballots — such as by bringing in large numbers of workers on temporary contracts beforehand.
The government will also double the penalty imposed on companies that use “fire and rehire” practices, meaning they could be forced to pay the worker 180 days’ worth of pay — up from the current 90 days.
The amendments also include extending sick pay to all workers from day one — instead of day four — for the first time. Measures will also force employers to pay sick pay to those earning under £123 a week for the first time at 80 per cent of their wages, the highest of three proposals in a recent consultation.
Another amendment will give greater powers to a Fair Work Agency, or FWA, to crack down on exploitative practices, with powers to bring civil proceedings against rogue employers at employment tribunals and issue civil penalties — including fines — to employers breaching pay-related rights.
The FWA will also be able to “obtain communications data and carry out surveillance and covert intelligence as part of its investigations”, the government will say.
The amendments come the day after MPs on the business and trade committee called on the government to tighten protections in order to prevent “rogue employers” from exploiting possible loopholes.
Martin McTague, chair of the Federation of Small Businesses, said that two-thirds of small businesses were not hiring new employees and a third could reduce their workforces as a result of the overall package.
“We are saying these are significant problems, we are not crying wolf, we are saying that these will have really damaging effects and if the government needs to grow it needs small business on its side,” he told BBC Radio 4’s Today programme.
Angela Rayner, deputy prime minister, insisted that the government would still introduce a “right to switch off” through changes to codes of practice — after reports at the weekend that the policy, which is not part of the bill, would not be pursued.
