Employment Rights Bill – Important Highlights

HR Smart’s View

There is no need to panic! These are proposals and are not coming into law just yet. In fact, they are not likely to come into force until 2025 at the earliest. There is a legislative process to go through and these proposals are likely to change by being strengthened, weakened or even dismissed.  HR Smart will keep you up to date with any legislative changes so that you do not miss anything.

Employment Rights Bill – What it Says

Unfair dismissal to be made a day one right

current two-year qualifying period for  protection from unfair dismissal proposed to be removed. The Government will consult with businesses and business representative bodies on a statutory probation period for new hires to assess their suitability for a role.

Use of exploitative zero-hours contracts will be brought to an end

employees on zero, casual and minimal hours contracts will gain the right to be offered a guaranteed hours contract if they work regular hours during a defined period.

Unscrupulous fire and rehire practice

end the process whereby employers can force one set of contract terms to cease and immediately introduce new terms with lesser benefits and remuneration.

Paternity rights, unpaid parental and bereavement leave

allow day one rights for workers and employees.

Statutory Sick Pay

three-day waiting period and lower earnings limit to be removed.

Strengthen the current flexible working laws

make the default to allow flexible working where there is no reasonable reason not to allow it.

Large employer action plans

requirement for large employers to produce action plans that address gender pay gaps and support employees through the menopause.

Protections for pregnant women and new mothers

protections against dismissal whilst pregnant, on maternity leave and within six months of returning to work.

Fair Work Agency to be established

aims to bring together existing enforcement agencies to help enforce employee rights. e.g. holiday pay.

Repeal the Minimum Service Levels legislation

This legislation was originally introduced to stifle strike action by unions and their members.

Amend method for setting National Living Wage

Provision proposed to be introduced by adjusting for cost of living levels when setting rates and removing age bands to avoid discrimination.

Next Steps – Labour’s Plans

The Labour Government have also published a document called Next Steps. This document outlines intended guidance and best practice for employers to follow. Some of the main points of interested are listed below:

Right to switch off

measures to avoid employees being contacted out of hours by employers, except in exceptional circumstances.

Commitment to end pay discrimination

proposal to expand the Equality (Race and Disparity) Bill  announced on 17th July 2024, to make it mandatory for large employers to report ethnicity and disability pay gaps

Single status of worker

proposal to transition away from the current self-employed, employer and worker statuses towards a simpler two-part framework for employment status.

Parental leave and carers leave

Review of current systems and processes in place.

Summary

Not all of the above proposed changes will affect every business. Whilst it may look daunting, many of the proposed changes only propose small changes to existing legislation and some of these may not come to fruition depending on the legislative process.

We would however advise all businesses to review their recruitment and employee management processes to be ready for any day one rights. You should also review any casual or zero-hours contracts currently in use to ensure they are not ”exploitative” or comprise of a regular work pattern. These areas are likely to have the largest impact on how you manage your employees in future.

Should you have any queries or questions on any of the above, then please contact me at jon@hrsmartuk.com or call us on 01903 754107.