The Labour Party has introduced its long-anticipated Employment Rights Bill, which proposes sweeping reforms to employment law. In this short blog, we’ll have a look at the proposed changes and discuss what they could mean for employees and employers alike.
From the outset, it’s important to understand that not all of these changes are guaranteed to become law. The proposals are subject to consultation and even if they are to be implemented, that implementation will likely take time.
Let’s examine each proposal in turn.
Unfair dismissal and day one rights
Perhaps the biggest change to come out of the bill is the change to unfair dismissal rights. As the law stands currently, employees need two years of continuous service to bring an unfair dismissal claim (save for in limited circumstances).
Under the new proposals, that would change to allow employees protection from unfair dismissal from day one of their employment. This ‘day one right’ would mean employees could challenge their dismissal from the very beginning of their employment.
Alongside these changes, the bill also includes plans for a structured probationary period, during which employees could still be dismissed if certain conditions are met. Speculation around what these conditions may be include the need for a meeting prior to dismissal or an extended list of ‘fair’ reasons for dismissal.
Notably, the bill seeks to abolish ‘fire and rehire’ practices which have been used by some employers to change employee terms and conditions by dismissing them and offering re-employment on new terms. Under this proposal, employers won’t be able to make these changes so easily.
New day one rights:
Under the new bill, other day-one rights include:
- Paternity leave – New fathers could benefit from improved access to paternity leave by the removal of the 26 weeks’ service eligibility criteria
- Unpaid parental leave – The one year’s service requirement would be abolished meaning that even new starters would have the right to unpaid leave to care for their children
- Paid parental bereavement leave – Currently, an employee needs 26 weeks service to be entitled to paid bereavement leave when dealing with the death of a child
Family-friendly and anti-discrimination rights
The bill proposes a raft of family-friendly workers’ rights alongside some strengthening of anti-discrimination rights.
- Flexible working requests – Employers will be required to automatically grant flexible working requests unless there is a practical reason not to do so
- Gender pay gap – Large employers will be expected to take action to address and close the gender pay gap
- Pregnancy and maternity protections – The Bill introduces stronger protections for pregnant women and new mothers, including protection against dismissal while pregnant, on maternity leave, and for six months after their return to work
- Menopause support – Employers will be required to provide support for employees going through the menopause.
Supporting low-paid workers
Another important aspect of the bill addresses some of the issues faced by low-paid workers, particularly around pay and job security. Key proposals include:
Statutory sick pay (SSP) – SSP would be payable from the first day of absence, removing the current requirement for three waiting days.
Another key proposal is to stop the practice of paying different minimum wage rates based on age. Currently, the breakdown of minimum wage rates is as follows:
- National Living Wage (NLW) – £11.01 per hour
- 21 to 22-Year-Olds – £10.18 per hour
- 18 to 20-Year-Olds – £7.49 per hour
- 16 to 17-Year-Olds – £5.28 per hour
- Apprentice Rate – £5.28 per hour
Under the new bill, this disparity will be removed and all low-paid workers will have the same band of pay.
Zero-hours contracts, a contentious issue for years, could also see reform. The Bill proposes giving workers on zero-hours contracts the right to a guaranteed-hours contract if they regularly work consistent hours over a specified period.
On one hand this may provide greater job security , however the reality of zero hours contracts is that they are often wanted by both employees and employers where flexibility is required.
What Next?
These are ambitious proposals and if enshrined into law, will require large-scale action from employers across the UK. That being said, we expect that the final version of the bill will undergo significant changes as it progresses through consultation and parliamentary scrutiny.
While it’s sensible to think about these potential changes, how they might affect your operation and what adjustments you might need to make, it’s also important to remember that the implementation of any new rights is unlikely to happen for at least another 12 months.
Here at the Gorvins Employment team, we’ll continue to monitor developments and keep you updated on any changes.
If you’ve got concerns and want to know more about how the bill could affect your business, call our employment team today. We’ll give you the support and advice you need to put a plan in place. Call us on 0161 930 5151, email us at enquiries@gorvins.com or fill in the online form.