Firstly, apologies for the above image. Apparently, this is what Artificial Intelligence imagined what I looked like when I was reading through the 158 pages of the new Employment Rights Bill.
Secondly, if this is the first time that you’ve heard of the Employment Rights Bill:
- Lucky you; and
- Please can I have the location of the cave you’ve been hiding in for the last few days?
Anyway, the Bill is here at last with some serious reforms, along with a "Next Steps" document outlining future plans. That said, there’s no need to panic because many of the reforms aren’t likely to take effect until 2026 and after consultations on some of the Bill’s proposals.
Here’s my nutshell summary of some of the main parts of the Bill.
Unfair Dismissal:
- New day one protection against unfair dismissal, but with a light-touch procedure for dismissals due to capability, conduct, legal bar or some other substantial reason during an "initial (probationary) period" (likely 9 months).
- Consultation needed to clarify procedures, compensation regime, and termination processes.
Stronger Harassment Laws:
- Employers must take "all reasonable steps" to prevent sexual harassment. Third-party harassment liability extended to all protected characteristics, not just sexual harassment.
Trade Union and Collective Rights:
- Easier for unions to gain statutory recognition, access workplaces, and take industrial action. Restrictions on strikes to be repealed.
Collective Redundancy Changes:
- Employers must count redundancies across all workplaces (not just one site) when determining collective consultation requirements.
Fire and Rehire Restrictions:
- Automatically unfair to dismiss an employee for not agreeing to a contract change. The only exception is if the employer can prove that the change was essential to address financial difficulties threatening the business's viability, and the employer could not reasonably avoid the need to make the change.
Zero-Hours Contracts:
- No outright ban, but new rules require employers to offer guaranteed hours after a reference period. Reasonable notice required for shift changes or cancellations with proportionate compensation for cancelled shifts.
Flexible Working:
- Refusals of flexible working requests must be reasonable, but no change in penalty (capped at 8 weeks’ pay). The employer will also have to explain in writing to the employee why their refusal is reasonable.
Gender Pay Gap Reporting:
- Employers with more than 250 employees will be required to publish and implement an equality action plan. This plan must outline steps taken on prescribed gender equality matters, including addressing the gender pay gap and supporting employees through the menopause.
Family Leave:
- Day one rights introduced for paternity and parental leave.
Statutory Sick Pay:
- Sick pay will be payable from day one of sickness, with no lower earnings limit.
Bereavement Leave:
- Bereavement leave will be extended to all workers, adapting the current parental bereavement leave regime to include all eligible bereaved individuals. Secondary legislation will define the types of relationships to the deceased that qualify for bereavement leave.
Single Enforcement Body:
- Creation of a "Fair Work Agency" to enforce employment rights, starting with minimum wage and holiday pay, with potential expansion.
So, there’s your summary. Obviously, there’s a lot more detail in the Bill itself which I’ll share over the coming months as the Bill progresses through Parliament and the consultations get under way.
Right, I’m off to have a chat with my AI contraption about why it thinks I should look like a 70-year-old City trader.
Until next time.
Darren
