Following the general elections, the new government committed to publishing its proposals for labor law reform within 100 days. With just a few days to go, the upcoming Employment Rights Bill of 10 October 2024 has been published.
It is described as the biggest upgrade to rights at work for a generation, and below is an overview of the key proposals.
Unfair dismissal
The proposal to grant first-day unfair dismissal rights has been controversial. Currently, two years of service are required.
There will be a new legal probation period. This will give employers time to properly assess someone’s suitability. During that period, employers will be able to adopt a “lighter and less stressful approach” when dismissing someone who is not suitable for the job.
The government favors a statutory probationary period of nine months and will consult on this matter during 2025. However, unfair dismissal reform will not take place before the autumn of 2026.
In certain circumstances, there is already extensive protection against unfair dismissal from day one, such as dismissal for whistleblowing or on health and safety grounds.
Workers without hours
Reports indicate that 84% of non-hours workers prefer to have guaranteed working hours. If someone works regular hours over a specified period, they will be entitled to a guaranteed hours contract, but workers can remain on zero-hours contracts if they prefer. They will also have the right to reasonable notice of the shift and the right to receive payment for canceling or changing a shift at short notice.
Fire and reemployment
“Ending unscrupulous hiring practices is a priority,” the government said. This includes termination of dismissal and re-appointment on new terms and conditions, which are often less favourable. It would be automatically unfair to dismiss someone who refuses to agree to a change to their contract except in certain circumstances. For example, if the change ensures that the business continues as a going concern as there is “no real alternative”. This may be difficult to prove in many cases.
Supporting working families
Flexible working will be the default position for all workers unless the employer can prove that it was reasonable to refuse the request for specific business reasons. Currently, there is a right to paternity leave, and there will be a new general right to bereavement leave. Protection for pregnant women and new mothers returning to work will also be improved. Finally, paternity leave and paternity leave will become a one-day right. Currently, one year of service and 26 consecutive weeks of service are required.
Statutory sick pay
The current earnings threshold and three-day waiting period before SSP is paid will be removed so that SSP will be available from the first day of sickness absence.
Protection from harassment
We have written about the new duty that will come into effect on 26 October 2024, which requires employers to take reasonable steps to prevent sexual harassment of their workers.
The bill expands this so that employers are obligated to take all reasonable steps. Future legislation may also define what constitutes reasonable steps, such as publishing plans or policies.
Protections from third party harassment, which were removed from the Equality Act 2010, will be reinstated in 2013.
Finally, disclosures of sexual harassment will be considered “qualifying disclosures” for whistleblowing purposes.
Mass repetition
The obligation to collective consultation arises when 20 or more employees are dismissed “in one enterprise”. The draft law clarifies that the obligation will apply when the minimum is reached throughout the organization, rather than in a specific institution.
Equality at work
Large employers (more than 250 employees) will be required to prepare action plans on how to address gender pay gaps and how to support employees going through menopause.
Industrial relations
The draft law contains several provisions, including requiring employers to provide workers with a written statement about their right to join trade unions. The government will also repeal union legislation passed by the previous government, including controversial (and never used) provisions relating to minimum service levels.
Implementation
Currently, many enforcement bodies are under different government departments, but the new Fair Work Agency will bring these bodies together.
What will happen next?
The bill did not mention topics such as the right to “switch off” or reporting the pay gap due to race and disability. This was mentioned in a separate document published on the same day which sets out the government’s long-term plans.
The second reading of the Bill will take place on 21 October 2024. Various consultation processes will take place throughout 2025, and we can expect a great deal of scrutiny of the Bill in the coming months.