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Understanding the Employment Rights Bill
Rob Maddocks
On Thursday 10th October 2024, the Government published details of the Employment Rights Bill.
Key features of the Bill are:
- Unfair dismissal to become a ‘day one’ right. This would remove the current two-year qualifying period for protection from unfair dismissal. The Government will consult on a probationary period to assess new employees for their suitability in the role. This is estimated to be for nine months but may well extend to a twelve month probationary period;
- Zero hours contracts – an end to ‘exploitative’ zero-hours contracts. Additionally, employees on zero and low hours contracts will gain the right to guaranteed hours, a right to reasonable notice of a shift and payment for cancellation of shifts at short notice;
- Fire and re-hire – establish a claim of automatic unfair dismissal for employees refusing a contract variation, with some limited exceptions;
- Paternity and parental leave will become day one entitlements, and bereavement leave will be extended to employees who have lost a family member – at the moment it only applies to the parents of a child;
- SSP – remove the current three-day waiting period and the lower earnings limit for statutory sick pay;
- Flexible working to become a default entitlement where it is ‘practical.’ Refusal has to be reasonable on prescribed grounds;
- Equality action plan – large employers with over 250 employees to produce action plans on addressing gender pay gaps and supporting employees through the menopause;
- Enhanced protections for pregnant women and new mothers, including protection from dismissal while pregnant, on maternity leave and within six months of returning to work;
- Contract of employment must contain a statement regarding union rights.
- For trade unions, a lowering of membership thresholds to secure statutory recognition. Obligations imposed on employers to inform workers of their right to join a trade union, an easing of legislation on strike action and a facilitation of electronic balloting.
At present it is estimated that the legislation will come into effect no earlier than 2026, with unfair dismissal reforms to be implemented no sooner than autumn 2026.
Going forward the Government will publish future reforms it calls “Next Steps”, including a ‘right to switch off’, preventing employees from being contacted out of hours, except in exceptional circumstances. It is expected that this will be introduced in a new statutory Code of Practice next year. They will also look to introduce a move towards a single status of worker and transition towards a simpler two-part framework for employment status. This will require a significant amount of consultation before implementation.