A Summary of the Summary
The last week has been a really busy one for anyone in the world of HR.
Last Thursday, as predicted the Employment Rights Bill was released. There is some good stuff in it, some really bad news for employers in it, and some stuff which, if implemented properly, has the potential to be good. As with all things legal, the devil will be in the detail and we don’t have the detail yet.
The Bill is 158 pages long. The Government have also released 104 pages of explanatory notes and there is a memorandum for the European Court of Human Rights which is 58 pages long.
I have written an 11 page summary document which is summarised further below. Please do take a read of this and if you are going to be impacted by any of these changes (hint: all employers will be), then grab yourself a copy of my longer summary with commentary and thoughts by hitting the button below.
Summary of the Summary
The proposed new Employment Rights Bill, championed by Angela Rayner, aims to introduce significant changes to UK employment law, with implications for businesses of all sizes. However, the legislation is raising concerns due to its rushed nature and perceived bias towards large, unionized companies, potentially leaving small and micro businesses vulnerable.
Key points include:
1. Bereavement Leave: Extension to cover all employees who lose a loved one, though many businesses already offer similar or better provisions.
2. Unfair Dismissal: Day-one rights for protection from unfair dismissal could complicate dismissals during probation, while a proposed statutory 9-month probation period might provide a legal framework for terminating poor performers.
3. Flexible Working: Employees will have the right to request flexible working from day one, making it the default. Businesses will need robust processes to defend any refusal of such requests.
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4. Parental and Paternity Leave: Increased rights for employees from day one, allowing them to request parental leave, potentially impacting business training and probation periods.
5. Protection from Dismissal: Extended protections for pregnant employees and those returning from family leave may make it harder to manage poor performance or restructure businesses.
6. Third-Party Harassment: Employers will face full liability for harassment by third parties, potentially challenging for businesses in industries like hospitality or care.
7. Statutory Sick Pay (SSP): Reform to introduce SSP from day one and removal of the lower-earning limit could increase costs for employers, particularly small businesses.
8. Zero-Hour Contracts: Proposals aim to reduce exploitative contracts by introducing guaranteed hours and notice requirements while preserving flexibility for workers who prefer it.
Many of these changes, including those affecting redundancy, equality action plans, and sector-wide collective bargaining, will require careful navigation by employers. Business owners are advised to audit their contracts, policies, and procedures to ensure compliance. It is anticipated that consultations will start in 2025 with implementation expected from 2026.
Business owners should consider their compliance strategies early, as the changes could have significant operational and financial impacts. While the Bill aims to protect workers, the balance appears heavily tilted in favour of employees, leaving employers with more responsibilities, increased costs and potential risks.