After the national election, the new Government committed to publish its proposals for reforming the employment law within 100 days. With just days to go, the much-anticipated Employment Rights Bill was published on 10 October 2024.
It’s being described as the biggest improvement in workplace rights in a generation, and here’s an overview of the key proposals.
Unfair dismissal
The proposal to grant unfair dismissal rights on the first day has been controversial. Currently, two years of service is required.
There will be a new official test period. This will give employers time to properly assess the suitability of the individual. At that time, employers will be able to use the “easy touch and no go method” when firing someone who is not suitable for the job.
The government is opting for a formal nine-month trial period and will consult on this in 2025. However, the change in unfair dismissal will not be before the fall of 2026.
In certain circumstances, there is already extensive protection against unfair dismissal from day one, such as dismissals related to conscription or for health and safety reasons.
Zero hour workers
It is reported that 84% of workers who work 0 hours would prefer to have guaranteed hours. If someone works regular hours over a fixed period, they will be entitled to a guaranteed hours contract, but workers can remain on zero hours contracts if they wish. They will have the right to reasonable notice of the shift and the right to pay for canceling the shift or changing it at short notice.
Burn and re-rent
The government said “eliminating unfair employment practices is a priority”. This includes firing and rehiring new, often unfavorable, terms and conditions. It will automatically be unfair to fire someone who refuses to agree to a variation of their contract except in certain circumstances. For example, if volatility ensures that a business can continue as a going concern when there is “no real alternative”. This may be difficult to prove in many cases.
Supporting working families
Flexible working will be automatic for all employees unless the employer can demonstrate that it was reasonable to refuse the request for stated business reasons. Currently, there is a right to bereavement leave, and there will be a general right to bereavement leave. There will also be improved protection for pregnant women and new mothers returning to work. Finally, parental leave and maternity leave will be entitled to one day. Currently, one year and 26 weeks of service are required respectively.
Statutory sick pay
The minimum wage limit and the current three-day waiting period before SSP is paid will be removed so that SSP is available from the first day of sickness absence.
Protection from harassment
We wrote about the new duty that will come into force on 26 October 2024, which requires employers to take reasonable steps to prevent sexual harassment of their employees.
The Bill extends this so that employers are obliged to take all reasonable steps. Future legislation may also specify what constitutes appropriate measures, such as publication programs or policies.
Protection from third-party harassment, which was removed from the Equality Act 2010 in 2013, will be restored.
Finally, disclosure of sexual harassment will count as a “qualifying disclosure” for impeachment purposes.
Joint renewal
The collective bargaining obligation arises when 20 or more workers are fired from a “single facility.” The Bill makes it clear that the liability will apply when the limit is reached across the organisation, not at a specific location.
Equality at work
Large employers (more than 250 employees) will need to develop action plans on how to address their gender pay gap and how to support employees going through the menopause.
Industrial relations
The Bill contains a number of provisions, including an obligation on employers to provide employees with a written statement about their right to join a union. The Government will also repeal the Government’s previous trade union legislation, including the controversial (and never implemented) provisions relating to minimum service levels.
Force
Currently, many enforcement bodies report to different government departments, but the new Fair Work Agency will bring this together.
What happens next?
The Bill did not refer to topics such as the right to “opt out” or report the racial and disability pay gap. This was mentioned in a separate document published on the same day outlining the government’s long-term plans.
The second reading of this Bill takes place on 21 October 2024. Various consultation activities will be carried out throughout 2025, and we can expect more scrutiny of the Bill in the coming months.