The Employment Rights Bill - How will this Change the Workplace

The extensive raft of new employment law proposals, introduced by the new Government into the House of Commons on 10 October 2024 in the form of the Employment Rights Bill, aims to provide employees with numerous new rights. This has been creating concern amongst employers, many of whom are not fully aware of the radical changes to the law or the extent. The bill is now at committee stage in the House of Commons. 

The recently resurrected Business and Trade Committee (“BTC”) is launching a major new inquiry into the Employment Rights Bill. The Rt.Hon. Liam Byrne, the Chair of the BTC, commented “The employment rights bill is one of the flagship reforms proposed by the new government. Many of its proposals were inspired by the malpractice exposed by our committee in firms like P&O. That’s why we’re determined to explore how to make sure this new Bill is good for our economy, stops bad firms undercutting the good and provides the right protections and voice for workers in our 21st century economy.” The BTC will report on the suitability of the proposed legislation once it has reviewed the information following its call for evidence.

Of course, whilst this will come as positive news to many employees, some of the major issues that many employers feel will be difficult to implement involve the “from day-one” rights. Many employers 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 Human Resource staff, and business owners, to ensure they are following rules to the letter, in order to comply with the proposed changes.

Whilst the bill is now at committee stage, the following will need to be considered by the committee:

• How the Bill and proposals will contribute to the Government’s stated 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, in particular investment rates, start-up rates, the supply of labour and the employment rate
• How to ensure adequate protection against exporting poor labour standards, including concerns over forced labour in international supply chains

Of course, much of the above will be considered further in line with the Autumn Budget, marking the first Budget of the new government, which has made a number of changes which will affect businesses, including Employer National Insurance Contributions.

Cameron Jack, a Paralegal in our English Employment Law team, commented “employers will have to cope with a considerable number of proposed major reforms, possibly marking the largest orange of new employment law for around 20 years. Many of the employee protections today are the product of 1990’s 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.” Cameron further commented “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.”

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. One of the most far-reaching new employment law proposals introduces obligations from day one. Whilst there may be modifications that Parliament may make to the new law during the course of the Bill’s transit through the Houses of Commons and Lords, employers need to start considering the changes that they will have to introduce. The Bill includes the following:

• This bill shall remove zero hours contracts and compel employers to introduce guaranteed hours with prior notice of shifts and compensation for short notice cancellation of shifts.
• Prevent 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) and 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.
• Make existing entitlements to Paternity Leave and Unpaid Parental leave available from ‘Day One’ of employment, enabling parents to take their Paternity Leave and pay after their Shared Parental Leave and pay
• Bereavement Leave, this is unpaid and will now extend from the first day of employment.
• Protections for the dismissal of women who are pregnant and extends for six months after the 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 is 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

The Government has stated “We expect to begin consulting on these reforms in 2025, seeking significant input from all stakeholders, and anticipate this meaning that the majority of reforms will take effect no earlier than 2026. Reforms of unfair dismissal will take effect no sooner than autumn 2026.” Therefore, employers do have a time to prepare for the changes but should begin considering the potential impact as early as possible, in order to start preparing their staff and up-dating policies.

Employers have time to make any changes needed, particularly with regard to the increased financial responsibilities. The new Government is focused on improving the working environment through new employment laws and 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. By fostering a more advantageous working conditions, the aim is to create a more productive workforce.

Cameron Jack studied both English law and Scots law and graduated from the University of Dundee. He has considerable expertise in both family law and employment law are is also part of the LGBT+ team at Giambrone & Partners LLP. 

He advises on a wide range of family law, including complex contentious matters. He specialises, in particular, in divorce and financial remedy proceedings, assisting clients with financial agreements and child arrangements. Cameron assists international clients on their family affairs. He also often assists LGBT+ clients and is empathic to the personal circumstances of clients.

Cameron has also advised in high-value financial cases where he has assisted in resolving complicated financial disputes involving assets in family businesses and trusts and is well-regarded by clients.

Cameron’s expertise also extends to employment law where he specialises in mediation and dispute resolution. He works tirelessly to resolve complex situations for his clients working tirelessly to resolve complex situations for his clients.

If you would like to know more about the proposed new employment law please contact Cameron's clerk Joseph Crick on JC@giambronelaw.com ro please click here.