The Employment Rights Bill – what’s the latest?

On 21 October 2024, the Employment Rights Bill (Bill) had its 2nd reading in the House of Commons. The government launched four consultations, which seek views on some of the provisions detailed in the Bill. The consultations are important information gathering exercises, outcomes of which may result in amendments to the Bill as it passes through Parliament. The consultations are as follows:

1.???? Zero hours contracts

The consultation relates to agency workers and whether various measures proposed in the Bill should be applied to them. The Bill introduces the right to a guaranteed hours, although workers will not be required to accept them. There are also provisions for shift work and the right to compensation for curtailed or cancelled shifts at short notice.?

Consultation closes on 2 December 2024.

2.???? Collective consultation and fire and re-hire

In addition to the trigger for collective consultation (20 or more dismissals) applying to the whole business (as opposed to just in one establishment), the Bill also proposes to lift the protective award cap where the employer fails to properly collectively consult. The two options being considered in the consultation are to increase the protective award from 90 to 180 days’ pay per affected employee, or to remove the cap on the protective award altogether (leaving it up to the employment tribunal to decide).

The Bill also restricts an employer’s ability to fire and re-hire in order to change employees’ terms and conditions of employment. The consultation also seeks views on interim relief and whether it should be available to employees who make unfair dismissal claims following fire and re-hire practices.

Consultation closes on 2 December 2024.

3.???? Statutory sick pay (SSP)

The Bill sees workers being entitled to sick pay from the first day of illness (the initial three day waiting period will be removed). Also, the lower earnings limit will be removed so that everyone is eligible for SSP. The consultation relates to the calculation of SSP for low earners, as their payments will be based on a percentage of their earnings. The Department of Work and Pensions are seeking views on what the percentage should be.

Consultation closes on 4 December 2024.

4.???? Trade union

The Bill introduces extended provisions for trade unions activities such as allowing rights of access, creating clear rules for organising, representing and negotiating as well as requiring employers to give workers a written statement notifying them of the right to join a trade union. The consultation is seeking views on various trade union laws and practices proposed in the Bill.

Consultation closes on 2 December 2024.

In addition to the consultations, the Department for Business and Trade has published ten factsheets on various topics contained within the Bill. The factsheets provide further details of the measures highlighted in the Bill, such as policy intent and how the provisions will work.?

We will keep you updated on further developments, but in the meantime, if you or your organisation require any assistance, please contact a member of the Employment, Pensions & Immigration department who will be happy to help.