On the 10th October the Goverment published the Employment Rights Bill.

We provide a summary of the Employment Rights Bill Announcement and an overview of the key proposed changes below:

Unfinished Legislation: The Employment Rights Bill, though anticipated to be revealed in full today, remains a work in progress. The government has recognised the complexity of the task and is taking a cautious approach, avoiding rushed legislation. This has been acknowledged as a positive step by the Employment Lawyers Association, as wide consultation is necessary for meaningful and practical reform.

28 Planned Reforms: Once completed, the bill is expected to introduce the most sweeping changes in employment law in over a generation, with 28 significant reforms aimed at enhancing workers’ rights. These changes, however, will come at a cost to businesses.

Consultation Process: Labour has shifted its approach from merely fulfilling manifesto promises to understanding the operational realities of governance. It is engaging with stakeholders, including the Employment Lawyers Association, whose members represent both employees and businesses. The consultation will take place over the coming months to ensure the reforms work for all parties.

Key Proposed Changes:

1. Day-One Unfair Dismissal Rights:

The current two-year qualifying period for unfair dismissal claims will be abolished, replaced with a likely nine-month probation period.

This probation period will require a proportionate assessment of an employee’s suitability, including evidence of performance issues and efforts at training before dismissal can be justified.

2. Family and Sick Leave Rights:

Day-One Rights for Paternity, Parental Leave, and Sick Pay: Workers will be eligible for these benefits immediately upon starting employment.

Reduced Waiting Periods for Sick Pay: Lower-paid workers will benefit from shorter waiting periods and quicker access to sick pay.

Protection for Pregnant Women: Rights will be extended, offering enhanced protection from dismissal after returning to work.

3. Limiting ‘Fire and Rehire’ Practices:

The government intends to restrict the practice of dismissing and rehiring workers under less favourable terms, although the exact wording and impact of this restriction remain to be clarified.

4. Zero-Hour Contracts:

While zero-hour contracts will not be banned, workers will have the right to request contracts that reflect the average hours worked over a set period. This is expected to cause challenges, particularly in seasonal industries like hospitality.

5. Flexible Working:

Flexible working will become the default right, subject to practicality. Clear statutory guidance will be necessary to prevent excessive litigation and confusion for employers.

6. Right to Disconnect:

This reform appears to have been delayed and may emerge as a voluntary code rather than a statutory right.

7. Ethnicity-Based Equal Pay Reforms:

The government has committed to expanding the Equality, Race, and Disparity Bill to mandate reporting on ethnicity-based pay gaps, to be enforced by the newly established Office for Equality and Opportunity.

8. Union Reforms:

The bill includes measures to prevent union-led disruptions and aims to reduce lost workdays, enhancing productivity.

Conclusion:

While the bill marks significant progress towards fulfilling Labour’s election promises, the need for further consultation and refinement is evident. The government’s focus on careful, inclusive reform is welcomed, though it will prolong the legislative process.