Seven million workers to receive sick pay 'from their first day of work' under new Labour plans

6 October 2024, 10:08 | Updated: 6 October 2024, 10:14

More than seven million workers will gain new sick pay, ­maternity pay and protection against unfair ­dismissal in sweeping new Labour plans, reports claim.

The Labour government is reportedly set to announce “once-in-a-generation” changes to worker's rights on Thursday, as they look to grant greater protections to working people.

Under current laws, workers are not entitled to sick pay until the fourth day of their illness. Under the Employment Rights Bill, workers will be able to claim sick pay from the first day they are unwell.

Women will be entitled to apply for maternity pay from their first day on the job and will be given greater protections from unfair dismissal, the report continues.

Probation periods, which can stretch for as long as two years, will allegedly be capped at six months, giving workers further protection against unfair dismissal from the first day at work.

Zero-hour contracts are also set to be axed if deemed “exploitative” under new laws.

There are concerns that the new government plans could incite criticism from businesses in light of the costs and burden associated with the new rights.

"Only Labour could come up with an unfunded tax rise. It won’t just cost the Exchequer, it will hit growth and investment too," Gareth Davies, a conservative MP, told the Mail.

However, Labour has ceded some ground to business leaders, including abandoning a statutory “right to switch off”, the Times newspaper reports.

“The potential for this to be positive is that by further weeding out ‘unfair’ employment practices, the overall quality of jobs in the economy rises, unfair competition is reduced, and potentially more people rejoin the labour market, helping with the UK’s activity problem,” Anna Leach, chief economist at the Institute of Directors, told the Times.

“But there’s the risk of using a sledgehammer to crack a nut and simply making it more costly to hire, and reducing employment opportunities.”

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Paul Nowak, general secretary of the TUC, added: “The Employment Rights Bill, if delivered in full, will make work better for millions of working people … Treating staff well boosts productivity and living standards.”

The plans are part of Labour's pledge to deliver new reforms within 100 days of taking office.