The government has published its responses to four consultations regarding its initiative on labour market reform, 'Make Work Pay'. It plans on strengthening union and workers’ rights in areas like zero-hour contracts, unfair dismissal and sick pay.
In October 2024 Consultations were published covering:
- The application of zero-hours contract measures to agency workers.
- Strengthening statutory sick pay.
- Collective redundancy and fire and rehire.
- Creating a modern framework for industrial relations.
The government response to these consultations has now been published.
Consultation outcome on the application of zero hours contract measures to agency workers
This Consultation received 165 responses from a range of stakeholders and the government will table amendments to the Employment Rights Bill clarifying that where a qualifying agency worker is entitled to a guaranteed hours offer, it will be the responsibility of the end hirer to make that offer.
Main proposals and next steps
- Which party has the obligation to offer guaranteed hours?
- Next steps: The government has tabled amendments to the Employment Rights Bill, clarifying that where a qualifying agency worker is entitled to a guaranteed hours offer, it will be the responsibility of the end hirer to make that offer. The amendments also include a provision that regulations could place obligations on agencies/other entities instead, in certain scenarios.
- Following a guaranteed hours offer, should end hirers be required to pay a transfer fee or use an extended hire period?
- Next steps: The government is not proposing any changes to the current system of transfer fees or extended hirer periods.
- Should both the agency and end hirer have responsibility for providing agency workers with reasonable notice of shifts?
- Next steps: The government has tabled amendments to the Employment Rights Bill placing the responsibility for providing a qualifying agency worker with reasonable notice of shifts on both the employment agency and the end hirer.
- Should legislation prescribe how the agency should be notified of an available shift (and any changes to these) by the end hirer?
- Next steps: The government will not be prescribing in legislation how agencies should be notified of available shifts (and of any changes to these) by end hirers.
- Should the agency be responsible for paying any short-notice cancellation or curtailment payments to an agency worker?
- Next steps: The government has tabled amendments to the Employment Rights Bill, placing the responsibility to pay any short notice cancellation or curtailment payments to agency workers on employment agencies.
- Should the agency be able to recoup the cost of short-notice cancellation or curtailment payments and should this be in legislation?
- Next steps: The government has tabled amendments to the Employment Rights Bill, which would give a right to agencies to recoup the cost of any short notice cancellation, movement or curtailment payments where they have pre-existing arrangements with hirers.
- Should contractual agreements be able to override the legislative provisions allowing agencies to recoup any cancellation or curtailment costs?
- Next steps: The government has tabled an amendment to the Employment Rights Bill which is designed to allow later arrangements to determine whether short-notice cancellation, movement or curtailment payments can be recouped from the hirer or not.
Consultation outcome on 'Strengthening Statutory Sick Pay'
Statutory Sick Pay (SSP) provides a minimum level of support when employees need to take time off work due to sickness, but the government regards the current legislation as flawed, restricting access to sick pay for the low-paid.
The government confirmed that it would introduce changes to the Employment Rights Bill. It would:
- Remove the Lower Earnings Limit as an entitlement condition for Statutory Sick Pay.
- Introduce a percentage rate of SSP. It will be calculated as a percentage of earnings instead of the flat weekly rate.
- See employees either receive a specified percentage of their weekly earnings or the existing flat rate of SSP, whichever is the lower.
- The government plans to set this percentage rate as 80% of normal weekly earnings, which will apply where 80% of an employee’s normal weekly earnings is less than the flat rate.
- The consultation did not ask what the SSP flat rate (currently £116.75 per week, increasing to £118.75 in April 2025 subject to parliamentary approval) should be.
The changes in this consultation apply to England, Wales and Scotland. SSP is a transferred matter in Northern Ireland, however, following extensive engagement with the Department of Communities, both governments agreed to bring forward amendments to extend these changes to Northern Ireland, including the percentage rate of 80%.
Consultation outcome on 'Strengthening remedies against abuse of rules on collective redundancy and fire and rehire'
The plan to Make Work Pay included commitments to strengthen redundancy protections, ending unscrupulous fire and rehire practices and ensuring effective remedies against abuse. There were 195 responses to this Consultation, and they were clearly divided in opinion between employers and trade unions.
- The government will bring forward an amendment to the Employment Rights Bill to double the maximum period of the Protective Award from 90 to 180 days.
- A Protective Award is a penalty awarded by an employment tribunal against an employer for not complying with the collective redundancy consultation requirements. It can be awarded when more than 20 employees are made redundant from one location within specific timeframes.
- Employment tribunals will continue to have the discretion to vary the length of the protected period, up to a maximum of 180 days.
- The government will issue further guidance for employers on consultation processes for collective redundancies, in due course. This will provide guidance to employers of all sizes on best practices when fulfilling their collective redundancy obligations.
- The government decided that 'interim relief' would not be an effective remedy to strengthen compliance or deliver additional benefits as this measure would cause increased pressure on tribunals, employees and employers when taken alongside the other changes proposed in this area.
- With both Collective Redundancy and Fire and Rehire law undergoing significant changes in the Employment Rights Bill, there will be additional discussions with employers and employees to review the impact and implementation of these changes before additional remedies, such as interim or injunctive relief, can be considered.
- As of 20 January 2025, the legislation means that in a collective redundancy scenario, where an employer has also not followed the Code of Practice on Dismissal and Reengagement, the employment tribunal may apply an uplift in compensation of up to 25% to a protective award. As the protective award is being doubled from 90 to 180 days the 25% uplift could now increase the protective award by up to the equivalent of 45 days compared to the current 22.5 days.
Consultation outcome on 'Creating a modern framework for industrial relations
Again the Consultation was issued in October 2024 based on the government's belief that trade union legislation has presented a significant barrier to effective, positive industrial relations in the UK. There were 165 responses leading the government to produce a new set of amendments to the Employment Rights Bill (ERB).
In summary, the government intends to introduce the following measures:
- An improvement to the process and transparency around trade union recognition, including streamlining the recognition process and strengthening protections against unfair practices. "This will prevent the voice of working people being undermined in the statutory recognition process and rebalance the recognition process".
- Extending access provisions to cover digital access in line with modern-day workplaces. This would allow union news and updates to be available on the employer's intranet. It also establishes a framework under which trade unions can access employees. If an agreement cannot be reached, then the Central Arbitration Committee (CAC) can impose an agreement.
- As part of the government's efforts to remove unnecessary 'bureaucratic hurdles', it will abolish the 10-year requirement for unions to ballot their members on the maintenance of a political fund. Instead, members would still be given notice of their right to opt out every 10 years.
- The government recognises the importance of striking a balance between allowing for effective strike action, while also ensuring that employers can reasonably prepare. It will simplify the current information requirements on industrial action ballots and notice to employers. requiring trade unions to provide a 10-day notice period for industrial action.
- The government will make balloting more accessible by delivering eballoting.
- The government will also extend the expiry of a mandate for industrial action from six to 12 months.
Details of all the consultation responses and government reactions can be found in the individual reports listed below.
Useful guides on this topic
Consultation: Application of new zero-hours contract measures to agency workers
As part of the Government’s plan to 'Make Work Pay', a consultation on ‘the application of zero hours contract measures to agency workers' has been released. This consultation seeks feedback on how the new measures should be applied to agency workers.
Consultation on strengthening statutory sick pay
As part of the Government’s plan to 'Make Work Pay', a consultation on ‘strengthening statutory sick pay' has been released. This consultation outlines key changes to be made to the current criteria for statutory sick pay and seeks views on the implementation of these new measures.
Collective redundancy and fire and rehire consultation
As part of the Government’s plan to 'Make Work Pay', a consultation 'Making Work Pay: collective redundancy and fire and rehire' has been released. This seeks views on strengthening remedies against abuse of rules on collective redundancy and fire and rehire.
Consultation: Creating a modern framework for industrial relations
As part of its ‘ Making Work Pay’ commitment, the Government has opened a consultation on creating a modern framework for industrial relations.
External links
Government Response to: Consultation on the application of zero hours contracts measures to agency workers
Government Response to: Strengthening Statutory Sick Pay
Government Response to: Strengthening remedies against abuse of rules on collective redundancy and fire and rehire
Government Response to: Creating a modern framework for industrial relations
