Employment Rights Bill
What Employers should know
The UK Employment Rights Bill (ERB) is set to introduce significant changes that will impact workers and employers alike. These changes span everything from zero-hour contracts to Statutory Sick Pay (SSP) and flexible working arrangements. Although many of these changes will not come into force until 2026, as an employer, understanding the nuances of these proposed changes is essential to remain compliant and adapt to the evolving workplace landscape.
Here’s a comprehensive look at the key provisions of the ERB and what they mean for employers:
1. Zero and Low-Hours Contracts
The ERB addresses concerns about zero-hour and low-hour contracts by introducing provisions that protect workers’ rights. Under the new legislation, workers will have the right to request contracts that reflect their average hours based on a 12-week reference period. This change is intended to provide workers with more stability and predictability in their employment. Additionally, the ERB mandates that workers receive “reasonable notice” for shift changes and compensation for shifts canceled at short notice.
What This Means for Employers
Employers should review their scheduling and communication practices to ensure compliance with the new notice requirements and fair compensation protocols for shift changes. Flexibility remains for those employees who prefer zero-hour contracts, allowing them to continue under these terms if they choose.
It is not yet clear how these changes will affect Agency Workers. However, The Best Connection is actively monitoring the Government consultation on this matter to provide updates as more information becomes available.
2. First-Day Protection from Unfair Dismissal
One of the most significant changes in the ERB is the introduction of protection from unfair dismissal from the very first day of employment. Previously, this protection was only available after two years of continuous employment.
What This Means for Employers
Employers will need to establish robust onboarding processes to avoid any early dismissal claims. While the government has proposed an exception during probation periods (potentially up to nine months), where dismissal can occur for performance-related reasons, at least one performance review meeting will be required before any decision is made. Clarifying probationary expectations will be crucial for employers looking to manage performance proactively. These measures will not apply to Agency Workers, which may provide employers with greater flexibility in managing agency staff.
3. Changes to Statutory Sick Pay (SSP)
The ERB proposes removing the lower earnings limit and eliminating the three-day waiting period for SSP. This means that more workers will be eligible for SSP, and it will be payable immediately when a worker is unfit to work.
What This Means for Employers
With these changes, SSP will become more accessible to part-time and lower-income employees, including agency staff. Employers may need to adjust payroll processes to accommodate the quicker initiation of SSP payments and work with agencies to ensure these provisions are effectively applied to agency workers.
4. Flexible Working as the Default Option
The ERB proposes that flexible working arrangements become the default for all employees unless an employer can prove that a specific request is unreasonable. The government has outlined eight business-related reasons that employers can use to justify denying a flexible work request, in line with existing guidelines.
What This Means for Employers
Employers should consider reviewing and updating their flexible working policies to ensure they align with this new default approach. Preparing documentation to support the business rationale for any denied requests will be essential in case of future disputes. Being proactive and open in discussions around flexible working can help retain talent and foster a positive workplace culture.
5. Introducing the Fair Work Agency (FWA)
The ERB introduces the Fair Work Agency, a new enforcement body intended to provide oversight and enforcement for compliance issues, particularly related to SSP and holiday pay. This agency expands on the concept of the Single Enforcement Body proposed in the 2018 Taylor Report, aiming to standardize fair treatment across various work sectors.
What This Means for Employers
Employers may be subject to new compliance checks or audits by the FWA to ensure adherence to SSP and holiday pay entitlements. This increased oversight means employers should maintain accurate payroll and attendance records and be prepared to demonstrate compliance in these areas.
6. Regulations on “Fire and Rehire” Practices
The ERB addresses “fire and rehire” practices, a controversial method some businesses use to change contract terms by dismissing and rehiring staff. Under the new bill, employees will have the right to claim compensation if they face dismissal without proper redundancy procedures.
What This Means for Employers
Employers will need to carefully assess whether redundancies or contractual changes can be managed within the bounds of the ERB. Exploring alternative solutions and consulting with legal advisors on employment restructuring can help avoid potential claims and maintain fairness in employment practices.
7. Expanded Parental and Bereavement Leave
The ERB removes the qualifying period for parental and paternity leave, making it accessible from day one of employment. Additionally, bereavement leave rights will be extended to include a broader group of workers beyond just parents.
What This Means for Employers
Employers should update their leave policies to reflect these changes, ensuring that employees are informed of their rights to parental and bereavement leave from their first day of work. Providing clear guidelines and access to these benefits will support a more inclusive and supportive work environment.
8. Clarifications on Flexible Working and Probation Periods
The ERB sets out that the flexible working request process, including what constitutes “reasonable” adjustments, will be clarified in consultation with employers, trade unions, and other stakeholders. This collaborative approach is intended to balance employer concerns with employee rights.
What This Means for Employers
Employers should keep an eye out for updates on these consultations and participate if possible. Understanding these adjustments will help employers make informed decisions about managing flexible work requests.
How can we help?
The Employments Rights Bill introduces important changes that will affect your workforce planning, employee rights and business operations. As an employer, understanding how these updates will impact your workforce and business is crucial to ensure compliance and maintain a production work environment.
If you are wondering how the ERB will affect your staffing, our recruitment consultants are here to guide you through the changes. Get in touch today to ensure your business is ready for the changes ahead!
Contact us today
Email sales.support@thebestconnection.co.uk or Phone 0121 504 3090
© 2024 The Best Connection Group Limited
VAT No. GB 661 5422 47 | Registered Company No. 02600534
The Best Connection Group Limited is an Appointed Representative of Howden UK Brokers Limited, FCA register number 307663. Howden UK Brokers Limited is registered in England and Wales, company registration number 02831010. Registered address: One Creechurch Place, London, United Kingdom, EC3A 5AF
By submitting your data you agree to our Privacy Policy