The UK's Employment Minister Kate Dearden has stood firm in defence of Labour's overhaul of workers' rights, saying it brings the country into line with global standards. Speaking at the International Labour Organization (ILO) conference in Geneva, she argued that the new law creates a "level playing field" for employees, similar to those enjoyed by workers in other Organisation for Economic Cooperation and Development (OECD) countries.
Key changes introduced through the Employment Rights Act last year – including enhanced sick pay entitlements, strengthened dismissal rights and greater access for trade unions – have been met with criticism from business groups. They warn that these reforms will lead to significant extra costs and may deter companies from hiring new staff, according to Office for National Statistics (ONS) data showing a decline in job vacancies.
However, Ms Dearden stressed the need for labour legislation to be updated and upgraded, highlighting the UK's historic lag behind other developed economies. The minister noted that recent statistics show a significant increase in low-paid workers on zero-hours contracts – a trend she believes can be turned around with more secure working hours.
With industry bodies warning against regulations that could inadvertently remove flexible employment options altogether, Ms Dearden acknowledged the need for a balance between certainty and security for employees and economic growth. She cited constituent feedback highlighting the challenges faced by low-paid workers on unpredictable contracts when budgeting and planning their lives.
The government is currently exploring further advancements in employment rights through consultations, including one on rights for unpaid carers and ongoing research into the impact of artificial intelligence on the labour market. The Labour government also aims to equalise youth rates of the minimum wage with adult rates, although this timeline will be determined by the independent Low Pay Commission. Following recent increases to youth rates – such as an 8.1% rise last year – there are concerns about the potential impact on household finances, particularly for those struggling to make ends meet amidst stagnant wages and rising living costs.