The King’s Speech: Enhancing Employment and Renters’ Rights

His Majesty King Charles III has set out the government’s priorities and proposed policies for the next parliamentary session at the State Opening of Parliament last week. Amongst other proposals, the reform of employment law, a pillar of Labour’s election campaign, along with the Renters’ Rights Bill has drawn our attention.

Employment Rights Bill

The King’s Speech has promised a new employment-related bill, the Employment Rights Bill. One of the aims of the Bill is to ‘introduce a new deal for working people to ban exploitative practices’.  The proposal is to address the rise in insecure work, mostly in the form of zero-hour contracts, which has grown to 1.18 million people in the UK in 2023. The proposal is to ensure that workers have a right to an employment contract which reflects the hours they usually work and that workers get reasonable notice of any changes to shift patterns.

Additionally, numerous other employment changes have been proposed in the King’s Speech. Notably, Labour intends to provide day-one rights on parental leave, sick pay, and protection from unfair dismissal for all workers, although employers will be able to operate a probationary period. In addition, the new government also plans to make it unlawful to dismiss a woman who has had a baby for six months after her return to work, ‘except in specific circumstances’.

Labour has pledged to introduce the Employment Rights Bill within the first 100 days of the new parliament. The Bill will need to be drafted and published and pass through both houses of parliament.

Employers therefore do not need to take immediate action as it could take some time before the new legislation is introduced. In anticipation of the change to zero-hours contracts, employers may want to review their current workforce to identify which staff may be affected. Any other necessary steps will depend on the introduction of the Employment Rights Bill, and we will provide further updates when it is published.

Renters’ Rights Bill

The Renters’ Rights Bill will include the abolition of so-called “no fault” evictions, strengthen tenants’ rights to challenge unfair rent increases, end rental bidding wars by letting agents, and give tenants the right to ask for pets. It will also be illegal for landlords to discriminate against tenants on benefits or with children when selecting tenants.

In the introduction to the King’s Speech, the Prime Minister stated that his government ‘will make sure everyone can grow up in the secure housing they deserve’, and the proposals concerning the Renters’ Rights Bill certainly seem to solidify this pledge.

Alongside the reforms, Labour will introduce ‘Awaab’s Law’, named after Awaab Ishak, a two-year-old who died from mould exposure in his socially rented home in 2020, which ensures that reports of damp must be swiftly addressed by landlords.

The Renters’ Rights Bill is intended to impose tighter restrictions on landlords to ensure tenant security, while also introducing ‘Awaab’s Law’ to promote prompt action on issues arising from mould and damp. Emphasising the government’s commitment to secure housing in the King’s Speech, these proposals highlight Labour’s dedication to housing reforms. We will provide further updates when the bill is published.

For more information on The King’s Speech and enhancing employment and renters’ rights, speak to the team.