Employment Rights Bill update

We talked about what changes the Employment Rights Bill would have brought to UK employment law. Now, the UK government has published the Employment Bill, introducing significant updates to workers’ rights and employer responsibilities. Expected to take full effect by 2026, the Bill establishes changes in dismissal, redundancy, harassment protections, family leave, flexible working, and trade union rights. Here’s an overview of the key areas:

1. Unfair Dismissal: Employees will gain the right to claim unfair dismissal from their first day of employment. Probation periods will be limited to nine months, and specific dismissal reasons will need to be followed carefully.
2. Redundancy and Collective Consultation: Employers will need to consult on redundancies across all work sites, not just individual locations. The government is considering increasing compensation for improperly handled redundancies.
3. Fire and Re-Hire Restrictions: Dismissals to enforce new employment terms will be deemed unfair unless necessary to prevent business collapse. The Bill also enables tribunals to penalise misuse of this strategy.
4. Outsourcing and Equality: Ex-public sector workers and private-sector workers on similar contracts must be treated equally, especially in those cases involving contract transfers.
5. Sexual Harassment and Discrimination: Employers are now required to take comprehensive steps to prevent workplace harassment, including that from customers or third parties. There is an added focus on eliminating gender pay gaps and supporting employees undergoing menopause.
6. Family Rights: The Bill extends family protections. Bereavement leave, parental leave, and paternity leave will be available from day one of employment. It also strengthens protections for employees returning from maternity and other family-related leaves.
7. Flexible Working: Employees can now request flexible working twice a year, and employers must explain any refusal in detail. These changes aim to create fairer access to flexible work options.
8. Sick Pay and Zero-Hours Contracts: Statutory Sick Pay (SSP) will start from day one of illness, and minimum earning thresholds will be removed. Zero-hours contracts are restricted, requiring employers to provide workers with reasonable shift notice and guaranteed hours after a set period.
9. Union and Industrial Action: The Bill enhances union rights by allowing electronic strike ballots, easing recognition requirements, and removing minimum service level rules during strikes. Workers on strike will gain stronger protections against dismissal, and employers must inform staff of their right to union membership.
10. Fair Distribution of Tips: New regulations require employers to fairly distribute tips, gratuities, and service charges, with regular consultation to review policies.
11. Labour Market Enforcement: The Bill establishes new oversight through a public agency (likely named the Fair Work Agency) to ensure compliance with employment laws, reducing the burden on employees to initiate claims independently.

These changes aim to provide a fairer, more supportive working environment for employees while clarifying expectations for employers. The Government has also launched consultations on four topics (Collective redundancy, Statutory Sick Pay, Zero and low hours contracts, Trade unions and industrial relations) which will remain open until 2 December.