What is the employment rights bill?
The UK’s Employment Rights Bill was introduced in parliament in October 2024.
The Bill seeks to address growing challenges faced by the working population, including insecure work, low pay and poor working conditions.
The bill which has been developed with significant input from trade unions such as UNISON, aims to transform employment rights and promote more equitable and secure working environment.
The Employment Rights Bill packs 28 imposing employment law reforms into its 158 pages.
Although the Employment Rights Bill was published to much fanfare on 10 October 2024, HR professionals are essentially working with what is still just a framework.
Over the next year, the Government will engage in consultation with key stakeholders on a number of the proposed reforms. The outcome of these consultations will shape, or at least influence, the passage of the Bill.
That said, the legislative process does not end with the passing of the Bill. That is just the first step. To bring some of the legislation to life, the Government will need to introduce secondary legislation. Additionally, we expect to see updated guidance and codes of practice, which will help cut through the haze.
Granted, without all this extra detail, it is far too early for us to provide a definitive analysis on how to revamp your organisation's HR policies. Nevertheless, we know that employers are keen to make the most of the current breathing space to stay ahead.
What do I need to know as an employer?
There are several key points of the bill that you should be aware of as an employer, including:
Ending zero hours contracts:
The bill proposes the elimination of zero hours contracts, providing workers with more stable and predictable employment arrangements.
However, if you have employees that prefer zero hours contracts, they have the right to continue with this way of working.
Abolishing Fire and Rehire practices:
The Employment Rights Bill intends to put an end to the practice of fire and rehire which is said to lead to reduced wages, benefits and job security.
Introducing day one rights:
The bill seeks to establish basic employment rights from the very first day of employment, including parental, paternity and bereavement leave. This change is aimed at providing workers with a better work life balance and addresses discrimination concerns.
The two-year service requirement for unfair dismissal looks set to be removed, which means that employees will be able to claim ordinary unfair dismissal from the first day of their employment.
Making flexible working the norm:
Recognising the changing nature or work the bill intends to normalise flexible working arrangements. This could lead to increased productivity and a more inclusive work place.
Under the Bill an employer will be able to refuse a flexible working request on one of the existing grounds only if it is reasonable to do so. Additionally, if the employer refuses a request, it must notify the employee of the ground for refusal and why the refusal is reasonable.
SSP from day one:
The bill seeks to improve sick pay provisions for employees by removing the 3 waiting days to receive Statutory Sick Pay (SSP) as well as removing the lower earnings limit of £123 per week. This change would allow employees to claim SSP from the first day of absence.
As a result of this change, for some low-earners, including those earning below the lower-earnings limit, their rate of statutory sick pay will be calculated as a percentage of their earnings or based on a flat rate, whichever is lower.
Sexual Harassment – a duty on employers:
The Bill imposes a duty on employers to take all reasonable steps to prevent sexual harassment from occurring in the workplace, instead of just reasonable steps.
Additionally, the Bill includes provisions that hold employers liable for third-party harassment if the employer fails to take all reasonable steps to prevent it.
Consultation for redundancies:
The Bill introduces an expanded obligation on employers to engage in collective consultation whenever they are proposing 20 or more redundancies within a period of 90 days. This means that the number of proposed redundancies will need to be counted across the entire organisation, not just at a single establishment.
How will this impact employers?
The Employment Rights Bill will likely lead to significant changes in employment law and the responsibilities of employers.
To comply with new regulations and requirements employers will need to revise and review employment contracts, policies and procedures to ensure they are up to date with the changes.
When will the bill come into effect?
There is no specific timeframe for these measures to be introduced. The changes proposed need to make their way through parliament and this could, and is expected, to take up to 18 months. It is expected that the bulk of the changes will not take place until 2026.
It is important to note also that these reforms will be subject to change. We recommend that during this time you review your policies and procedures ready for the changes in law.
The HR Hero can help you with this so you can rest assured that you have everything in place as and when the changes happen.
How can you help my organisation implement the changes?
As well as monthly exclusive updates to policies, The HR Hero membership clients will each be provided with an Employment Rights Bill Briefing Paper with advice on what needs updating in their policies and procedures and specific action that their organisation needs to take.
If you want to have everything you need to comply with employment law, support your people and protect the business, then come and join our monthly HR Hero membership from as little as £97 per month.
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