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Emma O'Connor

Employment


Is this the employment law "moment" we have been waiting for – well maybe? The Employment Rights Bill has perhaps been a worst kept secret, but it has now been published (10 October 2024), although the timetable and main details are awaited. With 28 proposed pieces of legislation is it "clumsy and chaotic" or a "fundamental improvement to working people’s lives?" Emma O’Connor reports on the main headlines.

 

"Clumsy and chaotic", or a "boost to productivity"?

What are the main changes proposed in the Employment Rights Bill 2024, which was unveiled today?

Although, we have been hearing about what is expected for a while now it seems, there are a few curveballs. The Bill is just that – a Bill. It will now go through the Parliamentary process which means parts of it could change. Then it will go out to consultation and (finally) there will be secondary legislation to bring parts of it into law. This will not be a quick fix (the BBC are saying October 2026!) and some aspects will take time. However, once we know more, employers and People Teams can put plans in place. 

 

Key proposals

Rights for employees to be able to claim unfair dismissal under the Employment Rights Act 1996 from their first day of employment and not after completing 2-years continuous service are to be introduced.  Existing automatic rights to claim unfair dismissal remain unchanged.

A new statutory 9-month probationary period will be carved out from the new day-1 right.  This will allow employers to assess a new employee’s suitability for the role; however, if the employee’s post probation dismissal is to be deemed “fair”, expect obligations on employers to ensure an open and transparent probationary period.  Another ACAS code – I would expect so.

New recruits will also have day-one rights to be entitled to paternity and parental leave. 

Parental bereavement leave extended to cover bereavement – I suspect there will be a definition of dependant similar to carer’s leave.

Employees (and workers) will also benefit from changes to the statutory sick pay regime whereby the lower earnings limit will be removed plus the ending of the three-day waiting period before SSP is payable.

A move away from the “Woolworths” establishment principle? A proposal that when counting proposed numbers of people to be made redundant, the employer will have to look beyond the one establishment – this will have huge implications for collective business reorganisations and redundancies/consultations.

 

Other headlines

  • The ending "of" exploitative zero-hours contracts and fire and rehire practices – we will have to wait and see what the definition of an exploitative zero hours contract actually is, as well as how these plans to end certain fire and rehire practices work in relating to the new Code of Practice relating to the practice which has already been published. Although, the proposals regarding fire and rehire look really restrictive for employers.
  • Flexible working to be the default, unless unreasonable for the role to be worked flexibility. The refusal has to be “reasonable” (doesn’t it have to be now?), watch out for “new-ish” statutory grounds for refusing a request, and an employer will have to explain to the employee why their application has been refused. This is going to be one to watch.
  • New protections from dismissal for pregnant women and returning to work mothers, with the latter being protected from dismissal for 6 months after returning to work (save in exceptional circumstances).
  • Larger employers (250+ employees) will be required to produce action plans to address gender pay gaps as well as show how they will support employees through menopause.
  • Plus, a new Fair Work Agency – a new body will be established which brings existing enforcement bodies, to “support employers looking for guidance on how to comply with the law” and enforce employment rights.

Deputy Prime Minister, Angela Rayner has said - “The UK’s out-of-date employment laws are holding our country back and failing business and workers alike. Our plans to make work pay will deliver security in work as the foundation for boosting productivity and growing our economy to make working people better off and realise our potential… Too many people are drawn into a race to the bottom, denied the security they need to raise a family while businesses are unable to retain the workers they need to grow. We’re raising the floor on rights at work to deliver a stronger, fairer and brighter future of work for Britain.”

We shall wait and see – more details to follow once we get them.  Get in touch if we can help guide you through.


Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.

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