How the Employment Rights Bill will change the workplace

by Cameron Jack 

New proposals introduced by the government last October in the form of the Employment Rights Bill aim to provide employees with numerous new rights. This has created concern amongst employers, many of whom are not fully aware of the radical changes to the law or the extent.

The Business and Trade Committee (BTC) is launching an inquiry into the Bill and chair Liam Byrne has said his committee was determined to make sure it would be good for the economy.

Whilst the Bill will come as positive news to many employees, some of the issues that many employers feel will be difficult to implement involve the ‘from day-one’ rights. They consider the day-one rights, coupled with the staff training required to update existing staff on the new law, updating policies, and the changes in the workplace, will be the most arduous to fulfil. This will place more pressure on HR staff, and business owners to ensure they are following the rules.

With the Bill now at committee stage, the following need to be considered:

• How proposals will contribute to the government’s goal of achieving the fastest growth in the G7
• Whether the Bill will adequately protect workers, improve security at work and raise living standards in every part of the country
• The impact the Bill will have on businesses, including investment and start-up rates, the supply of labour and the employment rate
• How to ensure adequate protection against exporting poor labour standards.

Reforms
Employers will have to cope with a considerable number of proposed major reforms. Many of the employee protections today are the product of 1990s legislation. There is not only the responsibility to act on any breaches of the law but also it is strongly suggested that employers should educate the workforce on how to avoid contravening their colleague’s increased rights, once these are fully introduced. Providing the workforce with training on the proposed new rights will be essential to ensure that businesses do not become burdened with potential Employment Tribunal claims when any new laws take effect.

Considerations
The reforms are aimed at improving work conditions and job security.  Failure to meet these standards could expose employers to legal risks if they are found to be non-compliant. Whilst there may be modifications to the new law during the course of the Bill’s transit, employers need to start considering the changes that they will have to introduce.

• The removal of zero hours contracts will compel employers to introduce guaranteed hours with prior notice of shifts and compensation for short notice cancellation of shifts.  Prevention of fire and rehire and replace practices by regarding any dismissals of employees for failing to agree to changes as automatically unfair, unless a business genuinely has no other choice.
• Protection from unfair dismissal arises from day one. However, a statutory probation period would mean that it would be easier to dismiss an employee during their statutory probation.
• Albeit that the statutory probation period is subject to consultation, the government has expressed a preference towards a nine-month period. Currently, save for limited circumstances, many statutory protections only become available to employees after two years (qualifying period of employment). Day one rights, even coupled with a statutory probation period will be a vast change for employees and employers alike.
• Employers must consult and notify staff where there are 20 or more redundancies to be made across the workforce.
• Existing entitlements to Paternity Leave and Unpaid Parental leave to be available from ‘Day One’ of employment.
• Bereavement Leave: this is unpaid and will now extend from the first day of employment.
• Protections for the dismissal of women who are pregnant will extend for six months after they return to work.
• Employers will now have to explain the reasons for refusing a request for flexible working from day one.
• Employers must take all reasonable steps to prevent sexual harassment of employees by third parties. Sexual harassment must now be added to the list of issues that employees can make protected disclosures on.
• Outsourced workers may report a pay gap issue.
• Equality Action Plans to be introduced to set out how gender pay gap issues can be addressed and support employees going through menopause.
• All workers have the right to statutory sick pay from day-one, removing the waiting period.
• School Support Negotiating Body to be reinstated to improve conditions for school support staff.
• Fair Pay Agreements process to be established in the adult care sector.
• Tipping Law to be strengthened to ensure that employees receive their full tips donated by customers collected by employers. Tipping policies must be revised in consultation with the workers.
• Trade Unions to be given extended freedom to organise, represent and negotiate of behalf of employees.
• Repeal of the Trade Union Act 2016.
• Strengthen trade unions’ right of access and introduce rights and protections for trade union representatives.
• Employers will now have a duty to inform employees of their right to join a trade union.
• Extended protections for blacklisting.
• A Fair Work Agency to be established.
• Penalties for unpaid employment tribunal awards.
• Businesses that operate as ‘gang masters’ in certain sectors to be licenced.
• Employment agencies and businesses to be regulated.
• Enforcement of National Minimum Wage and Statutory Sick Pay.

Consultation
The government expects to begin consulting this year with the majority of reforms likely to take effect no earlier than 2026. Employers therefore have a time to prepare for changes but should begin considering the potential impact as early as possible to start preparing their staff and updating policies.

The government is focused on improving the working environment through new employment laws. It reflects a shift towards worker-centric policies that not only enhance employee rights but also compel employers to adopt fairer and more transparent working practices.

Cameron Jack is a paralegal in English employment law at Giambrone Law
www.giambronelaw.com