Employment Rights Bill enters House of Commons

Thu 10th Oct 2024
A professional woman at work, wearing a lanyard, smiles as she talks to a colleague

As of 10 October 2024, the government’s Employment Rights Bill has just passed through its first reading in the House of Commons. The second reading is due to take place later this month on 21 October. So, what did the reading reveal about the upcoming bill and what will this mean for employers?

Steph Marsh, Head of Coodes’ Employment team, explores.

The Employment Rights Bill

The government’s Bill plans to give employees basic rights from their first day on the job. The Bill includes:

  • Employment rights from day one of employment including paternity, bereavement and parental leave protection from unfair dismissal. Parental as been removed from bereavement leave, meaning anyone is now entitled to take it.
  • Removal of the two-year qualifying period to bring a claim for unfair dismissal. This means employers will need a good reason to dismiss someone during the first two years, unlike the current rules.
  • Changes to the probationary period. Staff will be subject to a maximum nine-month probationary period during which employers can be dismiss more easily (given that the qualifying period has been removed) without the full dismissal process.
  • Statutory Sick Pay (SSP) is to be payable by employers from day one of absence, unlike the current day four.
  • Flexible working will become the ‘norm’ where practical. If flexible working is to be refused, it can only be if reasonable and for one of the specified grounds. Employers will now need to give reasons for the refusal in writing.
  • ‘Exploitative’ zero hours contracts will be abolished. Whilst workers can stay on zero hours contracts if they prefer, the Bill gives them the right to guaranteed hours contracts if they work regular hours over a defined period. Workers will also have a right to reasonable notice of their shifts and payment for cancelled shifts at short notice.
  • Fire and Rehire practices are to be banned. It will be automatically unfair to dismiss an employee for refusing a contract variation unless there is the limited exception that the company needs to avoid serious financial issues which would threaten the business. Although, they need to go through a thorough period of consultation.
  • Stronger dismissal protections for pregnant women and new mothers.
  • New Fair Work Agency to be created with new powers to enforce holiday pay.
  • Employers will now face full liability for any third-party harassment so have a larger duty to protect employees.
  • In the equality action plan, employers with over 250 employees may be required to produce action plans for gender equality.
  • Employers have a statutory obligation to provide employees with a written statement of employment information. This is listed in Section 1 of the Employment Rights Act 1996. The new Bill requires the Section 1 statement to include information on union rights.

What’s next?

Further consultations are also going to be had on the right to switch off from work outside of the working day as well as around simplifying the worker status framework.

This Bill is still in its early stages therefore these changes could be adapted before the law is passed. It still needs to pass through the House of Commons and the House of Lords before gaining Royal Assent.

In the meantime, employers should be looking at how they can prepare for some of these changes coming forward. Coodes’ Employment team are keeping up to date with these changes as they come in so we can give our clients the most reliable, relevant information.

For assistance with employment law issues, contact Steph Marsh by emailing steph.marsh@coodes.co.uk or by calling 01579 324 017. Alternatively, you can fill in our online contact form.

Thu 10th Oct 2024

Steph Marsh

Head of Employment

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