What does the Employment Rights Bill mean for your business?

The Government presented an Employment Rights Bill on 10^th October 2024 unveiling plans to significantly reform employment practices.

Before we discuss these changes and how they could impact your business, we must highlight that the points discussed are not current legal changes. 

A Bill is a proposal to change an existing law or create a law that must pass through various stages before it becomes law. This can take around 18 months and the proposal can vary several times between a Bill and becoming Legislation that must be followed.

What are the key points of the proposed Employment Rights Bill?

• Protection from Unfair Dismissal: Presently an employee must have been employed for at least two years to pursue an “ordinary” claim of unfair dismissal against a company before the employment tribunal. The Bill proposes to give employees this a day one right. 

There is an indication that this reform will not take place until Autumn 2026.

• Probation Periods: Currently there are no laws dictating the duration of a probation period. The Bill proposes setting a statutory probation period for new workers. 

• Statutory Sick Pay: Presently a worker must earn a lower earnings limit to and be off sick for 3 qualifying days before being entitled to SSP. The Bill proposes to remove the lower earnings limit for all workers reduce the waiting period before being eligible for SSP. 

• Zero-Hour Contracts: Put an end to zero-hour contracts, unless employees request them. 

• Fire and Rehire Practices: Put measures in place to end these types of practices.

• Parental Rights: To be strengthened and made available as a day one right, removing a requirement of continuous employment before an employee is eligible. Further, enhanced protection against dismissal will be strengthened for pregnant women and new mothers.

• Bereavement Leave: To set a clear standard for employers by establishing a new right to bereavement leave.

• Flexible Working: To become the default, unless the employer can show it is not reasonable. 

• Sexual Harassment: Employers to take “all reasonable steps” to prevent sexual harassment of workers, this is further than the existing requirement to take “reasonable steps”. 

• A Fair Work Agency: Shall be created to enforce rights such as holiday pay and supporting employers. 

• Equal Pay: Large employers will be required to create action plans on addressing gender pay gaps and the Government will review of the application of the National Minimum Wage.

These are just some key features of the proposals under the Employment Rights Bill and other measures such as a right to “switch off and a move towards a single status of worker are also under review for reform. 

Presently, the provisions of the Employment Rights Bill are not in force and you are not required to change your workplace practices. We share this information at this time to keep you informed of potential changes to support with future planning within your business. 

We will keep you updated about any changes that may affect your business. If you have any questions, please contact your HR Consultant at Stallard Kane. If you want to discuss your HR and Employment Law needs, please email us at hr@skaltd.co.uk, and one of our team members will get in touch with you.