Overview

This Employment Bill aims to strengthen workers' rights, clarify employment status, establish an Armed Forces Federation, and introduce worker representative directors on company boards.

Description

The bill makes several key changes:

• Unified Worker Definition: Creates a single definition of "worker" for employment rights, simplifying the current system and making it easier for individuals to claim their rights. The burden of proof in legal proceedings regarding employment status shifts to the respondent (employer).
• Trade Union Rights: Aligns the definitions of "worker" and "employee" in the Trade Union and Labour Relations (Consolidation) Act 1992 with the new, unified definition in the Employment Rights Act 1996.
• Armed Forces Federation: Establishes an Armed Forces Federation to represent service members on welfare, pay, and efficiency issues (excluding individual promotion and discipline, and strike action).
• Worker Representative Directors: Requires qualifying companies (those with 250+ workers, 100+ workers who trigger the right, or £2.5 million+ pre-tax profit) to include worker representatives, comprising at least one-third of the board. These directors focus on bringing the worker perspective, not directly representing worker interests.

Government Spending

The bill doesn't specify exact figures for government spending. However, costs are expected to arise from establishing and supporting the Armed Forces Federation, and potentially from any administrative requirements related to the new worker representative director provisions. Further details on the financial implications will likely be available in later stages of the legislative process.

Groups Affected

• Workers: Potentially benefits workers by clarifying their rights and making it easier to claim them; also empowers workers through worker representation on company boards.
• Employers: May face increased administrative burdens and potentially higher costs due to the changes in employment status and the requirement for worker representative directors.
• Trade Unions: Could see increased membership and influence through the simplified worker definition and the involvement of worker representatives on company boards.
• Armed Forces Personnel: Will gain representation through the newly created Armed Forces Federation.
• Large Companies: Will be directly affected by the requirement for worker representative directors on their boards.

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