Employment Rights Bill – update
The Employment Rights Bill, introduced by the Labour government on 10 October 2024, represents a comprehensive overhaul of the UK’s employment law which aims to enhance worker protections and modernise workplace practices.
Since the introduction of the Bill, we have refrained from publishing too much detail in our updates due to several significant factors influencing the clarity and accuracy of available information.
Firstly, the Government has undertaken multiple rounds of redrafting in response to consultations and parliamentary scrutiny, leading to substantial changes and amendments to the initial proposals. Additionally, widespread circulation of speculation as to the final draft has created uncertainty regarding the precise details and implications of the Bill.
Moreover, we believe it is wise for organisations to avoid prematurely implementing workplace policy adjustments based on speculative interpretations of the proposed reforms.
Given these circumstances, our decision was to withhold commentary until sufficient clarity and certainty emerged regarding the final content and direction of the Bill. With the Bill now progressing through the House of Lords, and key provisions becoming clearer, we are pleased to provide this key provisions summary.
Key provisions of the Employment Rights Bill
The Bill encompasses a wide range of reforms designed to improve employment conditions.
Protection against unfair dismissal
It introduces day-one rights for employees against unfair dismissal. Regulations are expected to set out a ‘light touch’ dismissal approach allowing dismissal during an ‘initial period’ of employment.
Fire and rehire
It restricts an employer’s ability to use fire and rehire to change terms and conditions of employment. It will also be automatically unfair to dismiss an employee for refusing to agree to a change in their contract of employment, unless the employer can demonstrate the need to make the change and show evidence of financial difficulties.
Collective redundancies
It introduces a new threshold test for collective redundancies.
Guaranteed hours and zero-hours contracts
It introduces rights to guaranteed hours, reasonable notice for shifts, and compensation for cancelled or altered shifts. Dismissals will also be automatically unfair in certain circumstances relating to guaranteed hours.
Flexible working
It requires any refusal of a flexible working request to be reasonable, explained in writing and why the refusal is considered reasonable. The current eight business reasons for refusal are retained.
Statutory sick pay (SSP)
It grants eligibility from the first day of illness and sets a lower rate of SSP to ensure broader coverage.
Family leave enhancements
It removes the qualifying period for paternity leave and allows fathers to take paternity leave following shared parental leave. The Bill introduces statutory bereavement leave rights from day one of employment, expanding support for employees experiencing the loss of a loved one. Protection against dismissal will be strengthened for pregnant women, those who have been pregnant and those taking or returning from a period of statutory family leave.
Anti-harassment measures
It amends the Equality Act 2010 to impose duties on employers to protect employees from third-party harassment and to take all reasonable steps to prevent sexual harassment in the workplace.
Establishment of the Fair Work Agency
It proposes the creation of the Fair Work Agency, a new body empowered to enforce employment rights, including initiating tribunal proceedings on behalf of workers who choose not to take action themselves. This agency aims to strengthen compliance and address exploitation in the workplace.
Repeal of the Strikes (Minimum Service Levels) Act 2023
It includes provisions to repeal the Strikes (Minimum Service Levels) Act 2023, which had imposed minimum service requirements during industrial action. This repeal signifies a shift in the regulation of industrial action and trade union activities.
Changes to trade union recognition thresholds
It proposes lowering the threshold for trade union recognition, allowing unions to seek bargaining rights with as little as 2% membership within a workplace, down from the current 10%. This change is intended to facilitate union representation, particularly in sectors with historically low union presence.
Re-establishment of the School Support Staff Negotiating Body (SSSNB)
It re-establishes the SSSNB, originally formed under the Apprenticeships, Skills, Children and Learning Act 2009 and later abolished by the Education Act 2011. The SSSNB’s role is to negotiate and set terms and conditions for school support staff, aiming to standardise employment conditions across state schools.
Comments
Trade unions have expressed support for the Bill, viewing it as a significant step toward preventing the exploitation of workers and addressing issues such as fire and rehire practices.
Some business groups have raised concerns about the potential impact of the Bill on employers, particularly regarding the administrative burden and costs associated with the new regulations.
Next steps
As the Employment Rights Bill progresses through the legislative process, it will undergo further scrutiny and potential revisions in the House of Lords. Stakeholders from various sectors continue to engage in discussions to balance the interests of workers and employers, aiming to ensure that the final legislation effectively addresses the evolving needs of the UK’s labour market.
The majority of these reforms are not anticipated to take effect until 2026. We will produce more detailed updates as the legislation and its impact become clearer.
Need support with your HR?
Our support means you can focus on education, while we take care of your organisation’s HR needs.
Our expert advisers are experienced in supporting schools with all aspects of staff management consultancy and recruitment. Our education HR specialists can support your school with a flexible and cost-effective service. Get in touch for a free quote about how we can help you.
The personnel section of our CEFMi website contains policies and information on a wide range of personnel issues. Get a free trial of CEFMi – a comprehensive resource for school managers containing over 7,000 pages of text. No other website offers such a complete service specifically written for schools.