Money Box Live: Changes to Rights at Work
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This Moneybox Live episode examines the landmark changes introduced by the new Employment Rights Act, which came into force on May 6, 2026, marking what the government calls the most significant update to workers' rights in a generation. Host Felicity Hanna is joined by experts John Palmer from ACAS and employment lawyer Karjul Nathwani, along with Employment Rights Minister Kate Dearden, to unpack key reforms including statutory sick pay from day one of illness, expanded paternity leave from the first day of employment, and bereaved partner leave of up to 52 weeks. While these changes are framed as empowering for workers and improving fairness, concerns are raised by small business owners like Paul Bowen of Bowen's Pies, who fear the added costs will strain already tight budgets. The episode also explores the creation of the new Fair Work Agency, tasked with consolidating enforcement of labor rights, though critics question whether it will be adequately funded. The discussion highlights a tension between worker protection and business sustainability, with the government emphasizing that the reforms are designed to support both economic resilience and employee security.
Statutory sick pay is now available from day one of illness, removing the previous three-day waiting period and expanding eligibility to 1.3 million more workers.
Paternity leave is now available from day one of employment, though the two-week duration remains a point of criticism compared to international standards.
Employers will bear the full cost of statutory sick pay, with an estimated additional £15 per employee annually, though the government argues this is manageable.
The new Fair Work Agency consolidates labor enforcement bodies to improve efficiency, but questions remain about its funding and capacity to enforce rights effectively.
Unfair dismissal rights are now available after six months of service instead of two years, with the removal of the cap on compensation.
…and 2 more takeaways available in PodZeus
Introduction to the New Employment Rights Act
“It's been called the most significant change to workers' rights in a generation.”
Day-One Sick Pay and Employer Concerns
“I can't afford to hire someone or pay for cover of someone and pay someone to sit at home as well.”
Paternity and Bereaved Partner Leave Reforms
“The partner essentially can take up to 52 weeks of leave in that situation to make sure that they can take care of the child.”
Government Response and Business Pushback
Employment Rights Minister Kate Dearden defends the reforms, emphasizing their role in building a more secure and resilient economy. She acknowledges business concerns but asserts that the cost is manageable and that the reforms are balanced.
The New Fair Work Agency and Enforcement Challenges
The creation of the Fair Work Agency is discussed, with its goal of consolidating labor enforcement bodies. However, concerns are raised about underfunding and the agency’s ability to effectively enforce rights, especially given past under-enforcement of minimum wage laws.
“If you are poorly, you shouldn't have to make that decision between not going to work and not being able to pay your bills.”
“It's been called the most significant change to workers' rights in a generation.”
“Two weeks is just simply not enough for dads and especially not for mums either.”
Host
Guests
Kate Dearden
person
ACAS
organization
John Palmer
person
Karjul Nathwani
person
Fair Work Agency
organization
Stockport
place
BBC Sounds
media
Radio 4
media
Osborne & Wise
organization
Resolution Foundation
organization
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