The Employment Rights Bill is set to change every workplace in the UK
The Government has now published the Employment Rights Bill, one of the new laws most keenly anticipated by Labour voters and trade unions. It was published on 10th October, just within the Government’s first 100 days, as promised.
Key elements of the Bill include restrictions on ‘exploitative’ zero hours contracts, which are used by many gig economy contractors. The practice of ‘fire and rehire’ will also be banned, except in extreme circumstances. It will also see the removal of qualification periods and pay levels for workers to receive various statutory benefits and protections.
The Bill will reform or repeal key Trade Union legislation passed by the last Government and establish a new single enforcement body to increase pressure on employers to comply with employment laws.
Let us look at these provisions in more detail…
Employment contracts and dismissals
The use of zero-hour contracts will be severely restricted and there will be a new right for workers to a ‘guaranteed hours’ contract reflecting the number of hours they regularly work. They will also have the right to reasonable notice of changes in shifts with proportionate compensation for cancellation or curtailment of shifts.
The current statutory guidance on ‘Fire and Rehire’ practices will be replaced by firm legislation providing effective remedies in law for dismissed employees.
It will be made unlawful, with some caveats, to dismiss a woman who has had a baby during the six month period following her return to work.
Day one rights
Parental leave, paternity leave and protection from unfair dismissal will become day one rights.
Currently, employees must have been working for 2 years before they can claim unfair dismissal. To balance this, a new statutory probation period will be introduced, probably 6 or 9 months.
Statutory Sick Pay
Statutory Sick Pay (SSP) will be claimable from the first day of sickness, currently it is the fourth day. Furthermore the lower earnings limit (LEL) requirement for claiming SSP will be removed, bringing more workers into scope.
Enforcement powers
A single enforcement body called the Fair Work Agency (FWA) will be set up to strengthen the application of workplace rights. The FWA will be able to enforce parental, holiday, sickness and minimum wage rights as well as inspect workplaces and bring prosecutions.
Union reforms
Trade Union reforms in the Bill include simplifying the statutory union recognition process and repealing the previous Government’s legislation on minimum service levels during strikes.
Conclusion
The provisions of the Employment Rights Bill are the fulfilment of a key promise that the Labour Party made to the unions and its supporters before the general election. We can expect the Bill to be passed as early as Parliamentary procedures will allow. The changes will affect every business in the country so it is important to make sure you are informed and prepared.
Remember to keep checking the UK Training website. We will be monitoring the legislation carefully and will help our customers to manage the changes with our regular employment law and payroll ‘update’ courses...
Written by Paul Murphy
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