Ministers have tabled amendments to the bill, which will see workers in low-paid roles entitled to 80% of their weekly salary or the current rate of Statutory Sick Pay – whichever is lower – as sick pay from the first day of illness.
Currently, to qualify for Statutory Sick Pay, you must have been ill for more than three days in a row and earn an average of at least £123 per week.
The Government said it will ensure the safety net of Statutory Sick Pay is available to those who need it the most, making it a legal right for all workers for the first time.
Ministers said the changes will also reduce the number of people going to work when ill and therefore the spread of infections in the workplace – boosting productivity and benefitting businesses.
Liz Kendall, Work and Pensions Secretary, said: “For too long, sick workers have had to decide between staying at home and losing a day’s pay, or soldiering on at their own risk just to make ends meet.
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“No one should ever have to choose between their health and earning a living, which is why we are making this landmark change.
“The new rate is good for workers and fair on businesses as part of our plan to boost rights and make work pay, while delivering our Plan for Change.”
Changes to zero-hours contracts
Another amendment to the Employment Rights Bill concerns zero-hours contracts. The Government said all workers, including up to 900,000 agency workers in the UK, should be able to access a contract that reflects the hours they regularly work. It said amendments to the bill would ensure that agency work does not become a loophole in its plans to end exploitative zero-hours contracts.
Ministers said the contracts will offer increased security for working people to receive reasonable notice of shifts and proportionate pay when shifts are cancelled, curtailed or moved at short notice – while retaining the necessary flexibility for employers in how they manage their workforces.
Paul Nowak, TUC’s general secretary, said: “Everyone deserves security and respect at work. These common-sense reforms will improve the quality of jobs in this country, boost growth and put more money into people’s pockets.
“Policies like banning exploitative zero-hours contracts, ensuring protection from unfair dismissal from day one, and tackling ‘fire and rehire’ are long overdue and necessary.
“This is about creating a modern economy that works for workers and business alike. Driving up employment standards in Britain will stop good employers from being undercut by the bad and will mean more workers benefit from a union voice.”