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Details of new rights for workers are due to be announced by the government today, which includes significant changes to sick pay and parental leave.
Ministers described this new Employment Rights Bill – which includes 28 separate reforms – as the biggest boost to pay and productivity in the workplace in a generation.
But, how will this new bill affect our entitlement to sick pay and parental leave?
While the government iron out the finer details, we have spoken to some employment law experts who have shared what they know so far…
Sick pay
What are the proposed changes to sick pay?
“The changes will make Statutory Sick Pay (SSP) available from the first day of illness, eliminating the waiting period, and remove the earnings threshold, meaning that even those earning less than £123 per week will qualify for support,” explains Louise Singh, professional support lawyer working with the national employment, pensions and immigration team at Weightmans.
“Before the proposed reforms, SSP in the UK was available from the fourth consecutive day of illness, meaning workers had to wait three full days without income before qualifying for support.”
This change will be particularly beneficial for lower-paid workers, those with irregular hours and part-timers who were previously excluded.
What are the reasons behind this change?
“The primary motivation for the reform is to provide better support for workers who fall ill, especially in light of experiences during the Covid-19 pandemic, where the gaps in the SSP system were laid bare,” says Singh. “It aims to reduce the financial burden on workers who need to take time off due to illness and promote a healthier workplace culture.”
When will it come into effect?
“The exact date for the new SSP rules to take effect has not been confirmed, but the government has indicated it will be rolled out in phases starting in 2025,” notes Singh.
Will anyone be exempt from this change?
“While the changes are designed to be comprehensive, some very small businesses or newly established companies may initially be granted exemptions or have phased-in requirements due to financial considerations,” highlights Singh. “The specifics of these exemptions have yet to be detailed, so there may still be some workers who do not benefit immediately.”
Parental leave
What are the changes around parental leave?
“Currently, to qualify for paternity leave, an employee must have 26 weeks’ continuous employment before the end of the 15th week before the expected week of childbirth, or in the week when the employee’s partner is notified of a match for adoption and must share responsibility for the care of the child with the child’s mother/adopter,” explains Kate Palmer, employment services director at Peninsula.
“Under the Labour plans, this qualifying service will be removed, and it will become a day one right. The right to take parental leave, which currently requires one year’s service, will also become available from the first day of employment.”
What are the reasons behind this change?
Under Labour’s Plan To Make Work Pay, the party set out its intention to conduct a full review of the parental leave system to ensure it suits the needs of working families.
“In particular, it stated its mission to “reduce the impact of parental income on a child’s opportunities” and for this reason make parental leave a day one right,” says Palmer. “Parental leave in law refers to a specific right to take unpaid time off to take care of dependent children, however with the announcement of changes to paternity leave, it would seem Labour are taking a broader view of parental leave.”
How will this benefit workers?
“It will give them the flexibility to change employers without the worry that doing so will make it harder to meet their family obligations,” says Palmer. “This frees working parents up to seek better employment opportunities and not feel ‘held back’ by their parental responsibilities.”
When will it come into effect?
“Like the sick pay changes, the parental leave reforms are expected to start in 2025, with further details on the implementation timeline to follow,” clarifies Singh.
