Key Changes to Worker Rights in 2024

National Insurance Contributions (NICs) are a tax on earnings paid by both employees and employers in the UK. Employees have NICs automatically deducted from their wages, while employers also pay a portion based on the salaries of their workers. These funds go towards essential public services like the NHS and state pensions. Currently, employers pay NICs at a rate of 13.8% on salaries above the threshold. However, the Labour government is considering increasing this rate to help plug a shortfall in public finances.

October 2024 introduces several major changes to UK employment law that will directly affect workers in areas such as job security, flexible working, and unfair dismissal protections. These reforms are part of Labour's "New Deal for Working People" and represent one of the most significant updates to worker rights in recent years.

HR Pulse   ​CRS

Here's a breakdown fo the key reforms:

1. Day-One Protection from Unfair Dismissal
   One of the most notable changes is the introduction of day-one protection against unfair dismissal. Under the new rules, employees will be protected from unfair dismissal from their very first day of employment. Previously, employees had to complete a two-year probationary period before qualifying for such protection. CRS
   
   What this means for workers:
   This change enhances job security by giving workers greater protection against arbitrary or unjust dismissal from the moment they start a new job. While probationary periods will still exist, this reform makes it much harder for employers to dismiss workers without valid reasons.
2. Ban on Exploitative Zero-Hours Contracts
   The ban on exploitative zero-hours contracts is another major shift. Many workers have faced unpredictability in their hours and wages due to these contracts. The new law will require employers to offer contracts that reflect the actual average hours worked by the employee, eliminating the uncertainty often associated with zero-hours arrangements​. HR Pulse CRS
   
   What this means for workers:
   This move towards greater transparency and stability will give workers more predictable income and working hours, reducing financial stress. It’s a critical change for those in industries such as retail, hospitality, and care services, where zero-hours contracts have been prevalent.
3. Flexible Working by Default
   The pandemic reshaped the way we work, and the demand for flexible working has only increased since then. Starting in October 2024, flexible working will become a default right for employees from day one of employment. This means that workers can request flexible hours or remote work without needing to provide special justification HR Pulse
   
   What this means for workers:
   This reform allows employees to better balance their work and personal lives, making it easier to adapt to personal circumstances, such as caring for family members or improving work-life balance.
4. Fire-and-Rehire Restrictions
   The controversial practice of firing employees and then rehiring them on less favorable terms, often referred to as “fire-and-rehire,” will now be tightly regulated. Employers will need to follow a fair process, including consulting workers and providing notice, before making any changes to employment terms. This will make it harder for businesses to exploit this tactic during restructurings​ CRS
   
   What this means for workers:
   This change strengthens protections for employees, ensuring that they are treated fairly during times of restructuring or business difficulties. Workers can feel more secure knowing their terms won’t suddenly be downgraded without proper consultation.
5. Enhanced Union Rights
   Labour’s Employment Rights Bill also includes improvements to union access and participation, making it easier for workers to organize and engage in collective bargaining. This is expected to give workers more leverage in negotiating better pay and working conditions HR Pulse

Why Is the Government Introducing These Changes?

These reforms are part of Labour’s broader goal to create a more equitable and worker-friendly labor market. The government has recognized that many workers have been left vulnerable by outdated employment laws and exploitative practices, particularly those on precarious contracts or in low-paying jobs.

By introducing these changes, the government aims to:

• Improved job security for workers across all industries.
• Reduce financial instability by curbing unfair employment practices like zero-hours contracts and fire-and-rehire tactics.
• Foster a healthier work-life balance, making flexible working the norm rather than the exception.

These reforms reflect a shift towards a more protective stance on worker rights, ensuring that employees have stronger safeguards and better working conditions. For many workers, this marks a significant step forward in creating fairer, more secure jobs.

How Youco Helps You Thrive Under These New Laws

At Youco, we’re committed to empowering workers in this new world of work. With these changes in place, it’s more important than ever to work with a company that understands and fully supports your rights. Here’s how Youco can help:

1. Immediate Employment Protection
   With day-one unfair dismissal protection now in place, working through Youco means you’re protected from day one. As your legal employer, we ensure that you’re always treated fairly and that your rights are fully upheld.
2. Job Stability and Predictable Hours
   Youco’s umbrella company model offers you the security of regular pay and employment benefits, while also providing flexibility. You’ll never have to worry about exploitative zero-hours contracts because we ensure that your working hours are stable, and your pay is predictable.
3. Flexible Working Support
   If you’re looking to work flexibly, Youco can support your needs. Whether you want to work remotely, part-time, or set your own hours, we help you find the right balance between professional and personal life.
4. Strong
   Youco’s umbrella company model offers you the security of regular pay and employment benefits, while also providing flexibility. You’ll never have to worry about exploitative zero-hours contracts because we ensure that your working hours are stable, and your pay is predictable.

Looking Forward: Thriving in the New World of Work

The new worker rights laws coming into effect in October 2024 represent a major step forward for employees across the UK. They offer stronger protections, more job security, and greater flexibility, aligning with Youco’s mission to empower workers in the modern workforce. By partnering with Youco, you can take full advantage of these changes and build a future where you are in control of your career.

For more information on the potential tax changes, you can read further coverage from from the links above.

Stay informed, stay empowered, and let Youco take care of the rest.