The Employment Rights Bill arrived on 10 October 2024, since then the government have launched further information on the measures set out in the bill and they have opened 4 separate consultations. It is fair to say that matters are moving at pace.
The Next Steps to Make Work Pay document provides helpful easy to understand detail on the proposed changes. I have reviewed this and pulled out 6 areas that I think will be important for business owners to be aware of:
https://assets.publishing.service.gov.uk/media/6707a5eb92bb81fcdbe7b62b/next_steps_to_make_work_pay.pdf
1. Removal of the 2-year qualifying period for unfair dismissal
Employees will be given the right not to be unfairly dismissed from their first day of employment. The Bill allows for employers to operate a probationary period providing an initial period of employment with a lighter-touch process for employers to follow to dismiss an employee who is not right for the job. The government will consult on how this will operate but has suggested the period will be 9 months and a process will need to be followed before employment is terminated.
2. Establishing new right to Bereavement Leave
At the moment the only legal right for an employee to have time off for bereavement is following the death of a child – this is called Parental Bereavement Leave. This will be extended to cover other bereavements and employees will be entitled to one weeks leave. Further detail will be published to specify the relationship with the person who has passed away to define when bereavement leave will apply.
3. Changes to Zero Hours Contracts
The Bill will give those on a zero hours contract and those on contracts with a “low” number of hours the ability to move to guaranteed hours contracts which reflects the hours they work over a 12 week period. Alongside this the legislation will ensure that workers get reasonable notice of changes in shifts with proportionate compensation for any shifts cancelled.
4. Protection from Third Party Harassment
The protection against harassment in the course of employment will be extended to harassment from third parties. Third parties are customers, suppliers and anyone an employee comes into contact with during the course of their employment. Employers will have a duty to deal with harassment from a third party and to take all reasonable steps to prevent harassment.
5. Changes to Statutory Sick Pay rules
The Employment Rights Bill will change SSP rules so that it will be payable from the first day of absence and there will be no requirement to earn above the current lower earnings limit to be eligible. The rate will be defined as a fixed amount or a maximum percentage of earnings where the employee earns less than the fixed amount.
6. Ending Fire and Rehire
This practice is used where an employer has a business need to support changing terms and conditions of employment. Where they cannot seek agreement from staff the law now gives the option to terminate employment and offer to re-engage on new terms and conditions (known a Fire and Re-hire). This will become unlawful, the new legislation only gives very narrow circumstances where this will be possible.
Consultation will now begin and continue during 2025 with the majority of these reforms expected to take effect in 2026.
Although there will be a long lead in time my advice at the moment for business owners is to:
1. Ensure you have an established probationary period process that is working smoothly
2. Review your use of Zero Hours contracts and assess if they reflect the hours your staff work on a regular basis
3. Ensure you have a clear policy on harassment, your managers are trained on how to implement it and your staff are comfortable reporting harassment. This will mean your business is in a good place to make changes as new legislation comes into force.
Please feel free to get in touch with me if you have any questions about this new legislation.
Email: [email protected]
The Next Steps to Make Work Pay document provides helpful easy to understand detail on the proposed changes. I have reviewed this and pulled out 6 areas that I think will be important for business owners to be aware of:
https://assets.publishing.service.gov.uk/media/6707a5eb92bb81fcdbe7b62b/next_steps_to_make_work_pay.pdf
1. Removal of the 2-year qualifying period for unfair dismissal
Employees will be given the right not to be unfairly dismissed from their first day of employment. The Bill allows for employers to operate a probationary period providing an initial period of employment with a lighter-touch process for employers to follow to dismiss an employee who is not right for the job. The government will consult on how this will operate but has suggested the period will be 9 months and a process will need to be followed before employment is terminated.
2. Establishing new right to Bereavement Leave
At the moment the only legal right for an employee to have time off for bereavement is following the death of a child – this is called Parental Bereavement Leave. This will be extended to cover other bereavements and employees will be entitled to one weeks leave. Further detail will be published to specify the relationship with the person who has passed away to define when bereavement leave will apply.
3. Changes to Zero Hours Contracts
The Bill will give those on a zero hours contract and those on contracts with a “low” number of hours the ability to move to guaranteed hours contracts which reflects the hours they work over a 12 week period. Alongside this the legislation will ensure that workers get reasonable notice of changes in shifts with proportionate compensation for any shifts cancelled.
4. Protection from Third Party Harassment
The protection against harassment in the course of employment will be extended to harassment from third parties. Third parties are customers, suppliers and anyone an employee comes into contact with during the course of their employment. Employers will have a duty to deal with harassment from a third party and to take all reasonable steps to prevent harassment.
5. Changes to Statutory Sick Pay rules
The Employment Rights Bill will change SSP rules so that it will be payable from the first day of absence and there will be no requirement to earn above the current lower earnings limit to be eligible. The rate will be defined as a fixed amount or a maximum percentage of earnings where the employee earns less than the fixed amount.
6. Ending Fire and Rehire
This practice is used where an employer has a business need to support changing terms and conditions of employment. Where they cannot seek agreement from staff the law now gives the option to terminate employment and offer to re-engage on new terms and conditions (known a Fire and Re-hire). This will become unlawful, the new legislation only gives very narrow circumstances where this will be possible.
Consultation will now begin and continue during 2025 with the majority of these reforms expected to take effect in 2026.
Although there will be a long lead in time my advice at the moment for business owners is to:
1. Ensure you have an established probationary period process that is working smoothly
2. Review your use of Zero Hours contracts and assess if they reflect the hours your staff work on a regular basis
3. Ensure you have a clear policy on harassment, your managers are trained on how to implement it and your staff are comfortable reporting harassment. This will mean your business is in a good place to make changes as new legislation comes into force.
Please feel free to get in touch with me if you have any questions about this new legislation.
Email: [email protected]