Employment Rights Bill Update: Key Changes and Progress
Mark Ridley provides an update in relation to the progress of the Employment Rights Bill
I recently reported a summary of some of the main provisions of the Government’s new, much discussed, Employment Rights Bill.
The new piece of legislation is huge, almost 160 pages, no less. It covers a myriad of different topics, touching on many areas of employment law, as discussed in my previous blog.
So, what’s the latest?
First, the bill had its second reading in the House of Commons on 21st October 2024, without any glitch, as expected.
Helpfully, the Government has published 10 factsheets relating to the forthcoming changes, all to be found on Gov.UK. This includes factsheets on:
- Employment Rights Bill overview;
- Fire and Rehire;
- Bereavement, Paternity and Unpaid Parental Leave;
- Statutory Sick Pay;
- Trade Unions;
- Unfair Dismissal; and
- Zero Hour Contracts.
A cornerstone of the Government’s proposals are the changes to unfair dismissal rights. The relevant factsheet confirms the intention to extend such rights to all employees from day one.
However, the Government states that it recognises that there must be a good fit between the employee and the role.
As such it confirms the intention to introduce a statutory probation period, designed to give employers the confidence to make new appointments.
The suggestion is that the statutory probation period will be 9 months.
An employee’s right to written reasons for dismissal, which currently can be exercised after 2 years of employment will instead be a right from the expiry of the statutory probation period.
Employers will continue to be able to have separate contractual probationary periods.
Much of this will be subject now to consultation.
It is anticipated that this change will impact a huge number of employees. The Government states that up to 9 million employees have been working for their employer for less than 2 years.
The Government has already launched consultation in relation to some of the proposed changes to statutory sick pay. The consultation can be found on the Gov.uk website under the tittle “Making Work Pay: Strengthening Statutory Sick Pay”.
Similarly, consultation in relation to elements of law relating to zero hours contracts (particularly with respect to agency workers) and fire and rehire have commenced. Likewise, these consultations can be found on Gov.uk.
It is fair to say that the Employment Rights Bill will bring substantial changes to employment law for both employees and employers. There will be many more updates as the consultations reach fruition, and as the regulatory meat is put on the bone.
We will endeavour to keep you up to date will developments. In the meantime, if they are not already doing so, employers should soon start considering a review of their recruitment processes and their employment contacts.
This is not legal advice; it is intended to provide information of general interest about current legal issues.