The Employment Rights Bill is a significant legislative reform impacting worker rights in the UK.
- Proposed changes include day-one unfair dismissal rights and a shift to flexible working as the standard.
- Zero-hours contracts may see a transformation with rights to guaranteed hours for regular work patterns.
- The Bill includes measures to prevent unscrupulous employment practices like firing and rehiring.
- Large employers will be required to address gender pay gaps and menopausal support.
The new Employment Rights Bill marks one of the most substantial overhauls in UK employment law for decades. The proposals aim to modernise work rights, giving employees day-one unfair dismissal rights, which some deem controversial, as currently, a two-year service period is required. There is also a plan for a new nine-month statutory probation period, allowing employers to assess new employees’ suitability without major obligations during this time. This reform is under consultation for 2025, yet full implementation is expected no earlier than autumn 2026. Notably, certain protections, such as those around whistleblowing or health and safety, already offer day-one cover.
A significant portion of the workforce on zero-hours contracts may experience notable changes. Currently, 84% of these workers prefer guaranteed hours. The Bill proposes that those with regular work patterns over a defined period can demand guaranteed-hours contracts, though the flexibility of zero-hours remains an option if preferred. Rights to reasonable shift notices and compensation for last-minute cancellations are also included.
The government is prioritising the ending of exploitative employment practices, specifically targeting the ‘fire and rehire’ strategy. Under the new Bill, dismissing an employee for rejecting unfavourable contract changes will be automatically unfair, barring scenarios where the business has no viable alternatives to continue operating. Proving such circumstances remains challenging, potentially limiting the application of this provision.
Flexible working is set to become the default expectation for all employees, with employers needing to justify any refusal based on specific business reasons. This shift supports parental and bereavement leave becoming day-one rights, enhancing protections for pregnant employees and those returning to work. The proposed reforms also advocate for removing the lower earnings limit and the waiting period for statutory sick pay, making it available from the first day of illness.
Employers will face new mandates to prevent workplace sexual harassment with a legal obligation to take all reasonable steps towards this end. The Bill seeks to reinstate protection from third-party harassment, which was retracted in 2013, and include sexual harassment revelations as whistleblower disclosures. Additionally, collective consultation requirements will broaden to include organisational-wide employee thresholds, enhancing the scope of current practices.
Larger employers, defined as those with more than 250 employees, will need to develop action plans to address gender pay discrepancies and menopausal support, signifying an heightened responsibility towards workforce inclusivity. Further, the Bill requires employers to inform workers of their trade union rights and plans to consolidate enforcement agencies into a single Fair Work Agency.
While the Bill outlines numerous changes, it notably omits issues like the right to ‘switch off’ and ethnicity or disability pay gap reporting, which await future consideration. The Bill’s second reading is anticipated on 21 October 2024, with detailed consultations to unfold through 2025, promising thorough examination and adaptation of the proposals.
The Employment Rights Bill outlines sweeping changes aimed at modernising UK labour laws and enhancing employee protections.
