The Deputy Prime Minister has pledged to “make work pay in Scotland”, as figures revealed parts of the country could see the biggest boost to their employment than anywhere else in the UK.
Speaking ahead of a visit to Glasgow on Thursday, Angela Rayner said the UK Government’s flagship Employment Rights Bill amounts to the “biggest upgrade to workers’ rights in a generation”.
Research from the UK Government has found workers in central Scotland will see the biggest boost to their wages as a result of the changes to workers’ rights.
Around 100,000 of the lowest-paid employees in Scotland are expected to be affected by the changes, including the ban on “exploitative” zero-hours contracts.
Labour’s landmark Employment Rights Bill returns to Parliament today – with millions of workers set to benefit.
We said we’d deliver the biggest upgrade to rights at work in a generation and the growth our economy needs – and that’s exactly what we’re doing. #MakeWorkPay pic.twitter.com/7t1GBA8nN3
— Angela Rayner (@AngelaRayner) October 21, 2024
A zero-hours contract is a type of employment that allows companies to only pay staff when they need them. It can see workers called at short notice to work a variety of hours, rather than a set amount each week like most staff.
Labour’s changes would give workers the right to a contract that matches the number of hours they usually work and would require firms to give reasonable notice and compensation if shifts are altered or cancelled.
The party said the change is needed as the proportion of zero-hours contracts in Scotland has more than doubled since 2013.
Ms Rayner said the UK Government has already delivered the “biggest pay boost on record” after raising the minimum wage.
That will result in an extra £1,400 a year for eligible full-time workers and £2,500 a year for 18 to 20-year-olds, whose wages are lower than their older counterparts.
The UK Government said parts of Scotland which have the highest rates of low pay would benefit the most from these measures.
Ms Rayner, who will later visit BAE Systems in the city, said: “This is a Government on the side of Scottish workers. Our landmark plan to Make Work Pay has already delivered one of the biggest pay boosts on record – and it is working people in Scotland who will benefit the most.
“Our Employment Rights Bill will make work pay in Scotland and tackle the insecurity, inequality and low pay that have held back workers and businesses for too long.
“We know there is business appetite to get going with our reforms and create a more modern, healthier and productive workforce.”
The UK Government said its employment Bill also offer workers statutory sick pay from day one of illness alongside making flexible working the default.
However, firms have raised concerns that the changes will raise the cost of doing business even higher.
Fashion retailer Next announced on Tuesday it will raise the price of its clothes by 1% to offset the cost of wage increases for its staff due to changes by the Government.
It said the rise in the minimum wage also came as the Chancellor hiked national insurance for employers in her Budget.
But Scottish Trades Union Congress general secretary Roz Foyer said: “The Employment Rights Bill, if fully enacted, can be the biggest upgrade in workers’ rights seen for a generation.
“Empowering workers to take a role in the setting of shifts and working hours is a win-win, boosting worker satisfaction and productivity.
“We look forward to working with the UK Government, unions and employer organisations to ensure every worker from every nation has these same rights and same sense of empowerment.”
