What does the Employment Rights Bill mean for your Business?

10th October 2024

Sticking to commitment to introduce the biggest reform to Employment Law in 30 years within the first 100 days in office, the Government has published the Employment Rights Bill late this morning. Spanning 158 pages, the Bill contains wide ranging employment reforms covering the full spectrum of employment rights from hiring to firing.

Whilst the Bill is yet to undergo the usual Parliamentary scrutiny and may therefore be subject to change, given the size of the Government’s majority, significant amendments seem unlikely and there appears to be a real impetus for the legislation to be passed with the second reading of the Bill already scheduled to take place on 21 October. Whilst the Bill does not specify when it will come into force, there is widespread reporting that this is unlikely to be until October 2026 to give employers time to prepare.

Below are the key highlights of the Bill. Given its wide-ranging scope, we will provide more detailed analysis of the bill and the steps you should take to prepare your business for the changes over the coming weeks and months. To receive these updates directly, sign up for our newsletter here if you have not already done so.

TERMINATION OF EMPLOYMENT
Unfair dismissal

 

  • two-year qualifying period for unfair dismissal protection will be removed
  • employees will have the right not to be unfairly dismissed from day 1
  • consultation on a new statutory probation period to allow for assessment of an employee’s suitability
Fire and rehire
  • only permitted where the business would not survive without it
Redundancy consultation
  • the trigger for collective consultation (currently 20 or more employees) will be dependent on the number of redundancies across the whole organisation, rather than in a particular establishment.
TUPE
  • additional protections will be introduced to protect public sector workers in outsourcing contracts

DISCRIMINATION
Sexual harassment

 

  • duty to prevent sexual harassment (which comes into force this month) to be extended to require employers to take all reasonable steps to prevent sexual harassment
  • reporting of sexual harassment to have equivalent protection to whistleblowing
Third party harassment
  • reintroduction of the new duty to take all reasonable steps to prevent third parties from harassing employees
  • reasonable steps to be specified
Equality action plans
  • regulations may be introduced to require large employers (those with over 250 employees) to develop and publish a gender equality action plan addressing the gender pay gap and to support employees going through the menopause.

CONTRACTS AND EMPLOYMENT TERMS
Sick pay
  • qualifying period for SSP and lower earnings limit to be removed
Zero hours

 

  • obligation to offer guaranteed hours to qualifying workers
  • guaranteed hours will need in most cases to reflect the hours worked by the worker in the relevant reference period
  • fixed or limited term guaranteed hours will only be permitted where it is reasonable
Shifts
  • requirement to give employees reasonable notice of shifts and cancellation of shifts
  • compensation for cancelled, moved or curtailed shifts in certain circumstances
Tips
  • consultation must take place before the first version of a written tips policies is produced
  • policies to be reviewed at least every 3 years

FAMILY FRIENDLY
Flexible working
  • greater onus on employers to explain why it is reasonable to refuse a flexible working request because of the ground relied on (which are similar to the current grounds)
Parental leave and paternity leave
  • qualifying periods (currently one year’s service for parental leave and 26 weeks’ service  ending with the week 14 weeks prior to the expected week of childbirth for paternity leave) to be removed
Bereavement leave
  • introduction of leave of up to one week for all bereavements
Protection from dismissal
  • greater protections against dismissal for those who exercise family friendly rights

TRADE UNION AND COLLECTIVE RIGHTS
Contracts
  • employee’s terms must include confirmation of their right to join a trade union.
Access
  • increased rights for trade unions to access the workplace to represent, recruit and organise workers and to facilitate collective bargaining
Recognition
  • reduced membership requirements
Activities
  • increased protections for time off and the provision of facilities for trade union officials
Blacklisting
  • increased protections against blacklisting
Ballots and industrial action
  • relaxation of the turnout and support thresholds
  • increased protections for those who participate in industrial action
  • repeal of minimum service levels

ENFORCEMENT
Enforcement officers
  • power to appoint enforcement officers
  • establishment of an advisory board of 9 members to represent employers and trade unions and to include independent experts
  • will have the power to enter premises and obtain documents
  • will have the power to require undertakings to be given

In addition to the Bill the Government have also published a “Next Steps” document setting out further ambitions to expand employment law reform covering (subject to consultation):

  • a right to switch off
  • reform of employment status
  • reviews into parental and carers leave.

If all of this is not enough to contend with, announced in the King’s Speech was also an Equality (Race and Disability) bill which is likely to introduce a requirement for large employers (those with more than 250 employees) to produce ethnicity and disability pay gap reports (which you can read more about here).

Please contact the employment team on 0161 832 3434 or email info@kuits.com for advice on how these changes will impact your business and the steps you should take to prepare.

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