Employment Rights Bill Introduced to Parliament

Today the Government introduced the Employment Rights Bill to Parliament, which marked the first significant step towards implementing employment legislation reforms.  This was set out in the governments ‘Plan to Make Work Pay: Delivering a New Deal for Working People together with a document called ‘Next Steps to Make Work Pay’. This sets out the Governments vision and objectives on how the reforms will happen and the additional wider reforms that the Government plans to deliver.

What Was Covered

The 150 page bill is wide reaching and at Chime HR, we are currently carrying out a detailed review of its contents in order that we can update you further as soon as possible.  In the meantime, the key changes as outlined in ‘Next Steps to Make Work Pay’ are as follows:

• Protection from unfair dismissal will be made available from day one for all workers.  You will continue to be able to operate probationary periods to assess new hires and there will be a lighter touch process which you will need to follow if you wish to dismiss an employee who is not right for the job.  The Government will consult on what this lighter-touch process will involve but it is envisaged that you will need to hold a meeting with the employee in order to explain the concerns with regards to their performance. The length of the probationary period is also going to be consulted on further but at the moment the Government is favouring a nine month period, together with consulting  on the compensation regime for successful unfair dismissal claims made during the probationary period and any changes that will need to be made to the ACAS Code of Practice on Disciplinary and Grievance procedures.
• Making unpaid parental leave and paternity leave day one rights.
• Introducing a new statutory right to bereavement leave.
• Making flexible working the default from day one with employees being required to accommodate requests as far as is reasonable.
• Ensuring workers who are on zero hours and a low number of guaranteed hours, have the right to a contract that reflects the number of hours they regularly work over a 12 week period.
• Workers will get reasonable notice of any changes to their shift pattern and there will be a requirement for proportionate compensation where shifts are curtailed or cancelled at short notice.
• The establishment of a new single enforcement body called the Fair Work Agency, in order to strengthen the enforcement of workplace rights.
• Legislation with regards to ending the ‘unscrupulous’ practices of ‘Fire and Rehire’ and ‘Fire and Replace’ will be reformed in order to provide effective remedies.   The Government has confirmed that it intends to maintain the ability of employers to restructure in order to remain viable where there is genuinely no alternative.
• Provisions will be strengthen on collective redundancy.
• Statutory sick pay will be strengthened by the removing of the lower earnings limit and also the removal of the three day waiting period which will make statutory sick pay available to all workers.
• Increased protection from sexual harassment.
• Protections for pregnancy women and new mothers will be strengthen to make it unlawful to dismiss a women who has had a baby, for six months after her return to work except in specific circumstances.
• Larger employers will need to address their gender pay gap through the introduction of gender pay gap action plans.
• Large employers will be required to public menopause action plans which will set out how they will support workers going through the menopause.

Next Steps and Timing

Most of the policies will require further consultation on the technical details before they can be implemented and much of the Employment Rights Bill is an ‘enabling’ piece of legislation.  This means that it simply provides the Government with the powers to introduce the individual elements at a later stage and enables the Government to lay down the foundations.  Additional time will be needed to refine the proposals and it is envisaged that amendments to the legislation will need to be made as they go through Parliament. The majority of reforms will take effect no earlier than 2026 with reforms to unfair dismissal not coming into effect any sooner than Autumn 2026, until then the current qualifying period will continue to apply.

The Government has also confirmed that it plans on making other changes in due course including:

• Updating trade union legislation, removing certain restrictions on trade union activity and simplifying the process of statutory trade union recognition.
• Adapting measures relating to zero hour contracts to agency workers.
• By the end of the year launching a Call for Evidence, on the tightening up of the ban on unpaid internships.
• Removing age brands so that every worker benefits from a genuine living wage.
• Introducing the ‘right to switch off’ which will allow workers to disconnect and not be contacted by their employer outside of working hours through a statutory code of practice.
• Conducting a review of the parental leave system and reviewing the implementation of carers leave.
• Merging workers and employees into one single status of worker and transitioning towards a simpler framework for employees and making clear differentiations between workers and the genuinely self-employed.
• Modernising health and safety legislation and guidance.
• Lengthening employment tribunals limitation periods.
• Launching a Call for Evidence to look at a wide range of issues relating to TUPE regulations including how they are implemented.
• Consulting with ACAS on the enabling of employees to collectively raise grievances concerning conduct in the workplace.
• Encouraging employers and trade unions to sign up to the Dying to Work Charter which helps support terminally ill workers.
• Introduction of measures to support disabled people and those with health conditions to enter and stay in work.

Equality (Race and Disability) Bill

The Government has confirmed that it will be producing an Equality (Race and Disability Bill) and will begin consulting on this legislation in due course with a Bill published during this parliamentary session.  The Bill will:

• Extend equal pay rights to protect those suffering discrimination on the basis of race or disability.
• Introduce mandatory ethnicity and disability pay reporting for large employers to help close ethnicity and disability pay gaps.
• Ensuring the outsourcing of services can no longer be used by employers to avoid paying equal pay.
• Implement a regulatory and enforcement unit for equal pay.