The Employment Rights Bill

Quick Summary: The Employment Rights Bill is set to bring the most significant reforms to UK employment law in decades. As it progresses through Parliament, these changes are designed to modernise outdated regulations and improve worker protections. While some details are still being finalised, implementation is rumoured to be in the next 18 to 24 months.

What is the Employment Rights Bill?
A Bill is a proposed law and only becomes an Act once approved by the House of Commons, House of Lords, and receives Royal Assent from the reigning monarch. Until then, changes may occur as the Bill progresses through various stages. We will keep you updated throughout this period.

Deputy prime minister Angela Rayner said: “This government is delivering the biggest upgrade to rights at work for a generation, boosting pay and productivity with employment laws fit for a modern economy. We’re turning the page on an economy riven with insecurity, ravaged by dire productivity and blighted by low pay.”

Key Changes:

  • Day one right to unfair dismissal: The current two-year qualifying period for unfair dismissal claims will be abolished. Employees will now be protected from unfair dismissal from their first day, ensuring there are robust processes being followed internally within organisations to justify the dismissal.
  • Statutory probation period: A new statutory probation period (proposed to be 9 months) will be introduced, giving employers flexibility while offering employees fair protection. This will be the first time probation periods will be recognised properly in employment law and so the processes around this in practice are not yet known.
  • Statutory Sick Pay (SSP): Immediate access to SSP, with the removal of the three-day waiting period and the lower earnings threshold of £123 per week.
  • National Living Wage: Ensuring the Low Pay Commission take into consideration the cost of living when setting the national living wage and removing the age bands, meaning younger workers are entitled to the same pay as older ones.
  • Zero-hour contracts: Employees have the right to a guaranteed hours contract if they have worked regular hours over a defined period (said to be 12-weeks). Workers will also be entitled to reasonable notice of shift changes and compensation for cancellations.
  • Paternity and parental leave: Parental and paternity leave will be available from day one of employment, removing the current qualifying period.
  • Pregnancy protection: Stronger protections for pregnant employees and new mothers, extending protections from dismissal while on maternity leave and for six months after returning.
  • Flexible working: The default option where practical unless the employer can prove it is unreasonable and ensuring the employer provides an explanation in writing to the employee on why they deem a refusal as reasonable.
  • Sexual Harassment Prevention: This is a huge and extremely important topic for all UK employers and is covered in more detail here. Specifically it includes liability on the employer for actions from third-parties in relation to Sexual Harassment. You must take action on this as an employer.

Other Proposed Changes

  • Ending fire and re-hire: Employers will no longer be able to fire employees to rehire them on less favourable terms, except in exceptional cases.
  • Bereavement leave: A clear standard will be set by establishing the right to bereavement leave, specifically the removal of parental so everyone is entitled.
  • Increasing tribunal time limits: Allowing more time for workers to bring forward claims.
  • Fair tip distribution: Ensuring that tips are allocated fairly to workers, preventing employers from withholding them. Read our article here
  • Collective redundancy consultation: This will require employers to consult with staff collectively if there are 20 or more affected employees across the whole business as opposed to one site.

What’s Still Unclear?
Some proposals, like the right to switch off, and the move to a single status of worker, are still subject to government consultations and legal clarifications. Finalised details may change as the Bill progresses.

Adam Oats – HR Manager
10th October 2024

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