Overview

• The Employment Rights Bill proposes removing the three-day waiting period and earnings threshold for statutory sick pay, allowing payments from the first day of illness.
• Labour argues the reforms will reduce infection spread, improve worker productivity, and address gaps exposed during the COVID-19 pandemic.
• Conservative peers, including Lord Hunt of Wirral, caution that the changes could lead to increased short-term absences, particularly in sectors like hospitality and retail.
• Government estimates place the cost of the sick pay changes at £15 per employee, with assurances that the impact will be monitored as part of broader workers' rights reforms.
• The Bill, currently under review in the House of Lords, also includes provisions for flexible working, guaranteed hours, and harassment protections.