Important Updates to Employment Rights Bill 2024

Mark McKeating, Partner.

At our last HR Breakfast seminar on 28 November 2024, we broke the news to the attendees of further employment law changes set to be rolled out in the Employment Rights Bill. These changes are set out in an Amendment Paper.

Claims Limitation Period to ‘double’

The standout piece is that the government is proposing to extend the time limit for bring all Tribunal claims from 3 months to 6 months. This is likely to happen in 2026.

Currently, claimants must file all claims other than redundancy pay and equal pay within three months (as extended by early conciliation via ACAS) of the qualifying date, or risk having their case struck out due to time bar.

The proposed changes are likely to increase the number of claims raised and reduce the number of cases dismissed early in proceedings due to timing issues.

Our opinion

This reform has been talked about for a number of years. It is recognised that it is likely to help pregnant workers or those on maternity leave who are arguably the most disadvantaged by the current 3-month limitation.

There is already significant strain on the Employment Tribunal and ACAS in managing claims. In some cases, we are seeing listings of hearings falling 18 to 24 months from issue of the claim form. Undoubtedly the Tribunals and ACAS will require some significant investment over the next few years to meet the anticipated increase of claims.

Employers may also need to adjust their data retention policies on account of the longer period of limitation.

Other proposed changes

• The initial period of employment (within the new framework for ‘day 1’ unfair dismissal rights), is proposed to be between 3 and 9 months. Previously the government suggested that it could be up to 9 months.
• Changes to the rules on payments when shifts are cancelled, moved or curtailed at short notice, include giving the tribunal discretion on whether to make an award, and further discretion as to what that payment should be, taking account of the ‘seriousness of the matter’.
• Adding menstrual problems and menstrual disorders to the definition of “matters related to gender equality” which, under separate Regulations, employers may be required to produce equality action plans on.

This is an indication of the growing awareness of issues relating to menopause in the workplace. Some employers are already ahead of the game by appointing menopause champions and sharing ideas for how to support colleagues. It seems this progress will soon be reflected in law.

• Clarification that the right of trade unions to access workplaces will not extend to any workplace which is also a dwelling.

The following changes are also proposed by other politicians in the Amendment Paper:

• A clause which would render void any non-disclosure agreement insofar as it prevents the worker from making a disclosure about harassment (including sexual harassment).
• A clause prohibiting the use of ‘substitution clauses’ in employment, worker or dependent contractor contracts.

Given the range of new laws set out in the Employment Rights Bill here, this is unlikely to be the last set of updates to be added. Many of the reforms will also be subject to consultation in 2025 before the law is implemented in 2026.

If you would like to discuss any of the above points please contact Mark McKeating at mark.mckeating@kuits.com or call 0161 832 3434.