The wait is over for the publication of the new Employment Rights Bill which is 158 pages long!
Following a press release and a statement from the Secretary for State and Business about the Benefits of the Employment Rights Bill being a pro-worker, pro-business plan, the government has published the Next Steps to Make Work Pay paper to provide businesses and workers clarity on how Government intends on delivering on the plan.
The government has also announced plans to establish a new Fair Work Agency bringing together existing enforcement bodies.
The Next Steps to Make Work Pay paper details that the Bill will bring forward policy measures including:
- ‘Day 1 rights’ of employment, including entitlement to paternity leave, and unpaid parental leave as well as protection from unfair dismissal while allowing employers to operate a statutory probationary period for new hires. Establishing bereavement leave, and making flexible working the default ‘where practical’
- Addressing one-sided flexibility by banning exploitative zero-hours contracts, abolishing the scourge of fire and rehire and strengthening provisions on collective redundancy
- Establishing the Fair Work Agency
- Bringing forward measures to modernise Trade Union laws
- Improving pay and conditions through a Fair Pay Agreement in adult social care, re-establishing the School Support Staff Negotiating Body, and re-instating the 2-tier code for procurement
- Increasing protection from sexual harassment, introducing gender and menopause action plans and strengthening rights for pregnant workers
- Strengthening Statutory Sick Pay – the lower earnings threshold for SSP will be removed, as will the 3-day waiting period.
Some highlights from the Employment Rights Bill itself, as we have read so far…
- Zero-hours – Guaranteed hours provision (s1), right to reasonable notice of shift (s2) and cancellation of (s3)
- Removal of predictable terms provisions (s5) – this confirms that the ‘Workers (Predictable Terms and Conditions) Act 2023 due to come in this month is not coming into play. Instead, it is expected that other legislation around Guaranteed hours will supersede this.
- Flexible working – refusal has to be reasonable and explained to employee with reference to the grounds of refusal (s7)
- ‘Parental’ removed from bereavement leave (s14)
- Full liability for third party harassment (s16)
- Protected disclosures – allegations of sexual harassment will be covered (s18)
- Unfair dismissal – removal of qualifying period (s19)
- Fire and Re-hire – it will be unfair to dismiss an employee for refusing a contract variation unless they are not replaced. Exception for genuine need to avoid serious financial issues that may threaten the business (s22)
- Collective redundancy – limits on consultation and number of employees affected apply across the whole business rather than just at one establishment (s23)
- Equality action plan – the regulations may require employers 250< to produce a plan regarding gender equality (s26)
- s1 statement – to include statements of union rights (s45)
- A Part 3 Section on Pay and Conditions in Particular Sectors – implications for employers of School Support and Adult Social Care.
What isn’t in the Bill but is in the Next Steps to Make Work Pay:
- Requirement for large employers to report their ethnicity and disability pay gap
- The ‘right to switch off’
- A move towards a single status of worker
- Reviews into the parental leave and carers leave systems
How will the Changes be Implemented?
The Leader of the House of Commons has announced the second reading of the Employment Rights Bill will be on 21 October 2024. The second reading is normally the main debate on a Bill. However, not all changes will come into effect following the 2nd reading. A limited number of targeted consultations will seek views on several areas to inform the government’s next steps. For instance, consultation on what the percentage replacement rate for those earning below the current flat rate of Statutory Sick Pay should be,.
Consultation will also take place to ensure the bill’s provisions on zero hours contracts are effectively and appropriately applied to agency workers, as well as on reforms to modernise and update trade union laws so they are fit for the modern economy, with the potential to inform further amendments during the bill’s passage.
As is typical with employment legislation, further detail on many of the policies in the bill will be provided through regulations, and in some cases codes of practice, after Royal Assent. This government states it understands that adjusting to these new reforms will take time and is committed to ensuring that all stakeholders receive appropriate time to prepare for these changes ahead of their commencement.
Consultation on these reforms is expected to begin in 2025, meaning that the majority of reforms will take effect no earlier than 2026. Reforms of unfair dismissal will take effect no sooner than autumn 2026.
We will continue bringing you more in depth content on the changes along with the timescales for each enactment.
You can be assured that we will keep up-to-date with the changes that are afoot and will have the resources to support our clients. So, you can relax that working with us means you will be up-to-date and compliant.
