Preparing for the Proposed Employment Rights Bill 2024

An overview of the Employment Rights Bill 2024 and its potential impact on UK employers.

The UK Government is working on the Employment Rights Bill 2024, which could introduce significant changes to employment law. Although these reforms have not yet been passed, and the final version may change following parliamentary scrutiny, businesses should prepare now. Some changes are expected next year, while others may take up to 18 months to implement. ~~A 150-page document is expected to be released soon, detailing the proposed changes.~~ See Update below.

Employers should also note that the Autumn Budget 2024 is likely to provide further insights into this bill, offering additional information on how the new rights could affect businesses. To stay updated on both the Employment Rights Bill and the broader Autumn Budget, visit our insights on the UK Budget changes for employers and employees in 2024.

UPDATE (11, October 2024)

Following the release of the Employment Rights Bill 2024 document, additional provisions have been introduced beyond the initial announcements. These updates still need approval from both Houses of Parliament, but employers should take note.

Key additions include:

Shift Cancellation Protections: Employees will be entitled to compensation if their shifts are cancelled without sufficient notice. Employers will need to formalise cancellation procedures to avoid penalties.
Stronger Sexual Harassment Protections: The bill introduces more stringent obligations on employers to prevent and address sexual harassment in the workplace, ensuring a safer work environment for all employees.
Fair Work Agency: A newly proposed Fair Work Agency will oversee the enforcement of these rights, ensuring businesses comply with the updated employment standards. The agency will have the power to investigate complaints and enforce penalties where necessary.
Trade Union Regulations: The bill strengthens union recognition and balloting procedures, enabling better representation for workers. Employers may need to engage more proactively with unions to meet new bargaining standards.
Increased Penalties for Non-Compliance: Fines and penalties for employers who fail to meet the new employment standards will be significantly increased, particularly around the areas of guaranteed hours and fair dismissal practices.

While these updates are substantial, it’s important to note that they remain subject to further parliamentary scrutiny and potential amendments. However, businesses should begin preparing for these changes to ensure smooth compliance once the bill is fully enacted.

Original Post Below

Day-One Rights: Proposed Changes

A key part of the proposed Employment Rights Bill is the introduction of day-one rights for employees, including protection against unfair dismissal, paternity leave, and unpaid parental leave. These rights will apply from the first day of employment, unlike the current system that requires two years of service. Maternity leave already has this protection.

These changes could have a considerable impact on businesses, requiring adjustments to HR policies. Preparing your business in advance will ensure a smoother transition if and when the bill becomes law.

Our HR support services are ready to help you update your processes.

Universal Sick Pay from Day One

Under the current system, statutory sick pay (SSP) begins after four days of absence. The proposed reforms would entitle workers to SSP from the first day of illness, and they would remove the lower earnings limit, meaning more employees will qualify for sick pay.

This shift could have significant implications for payroll management, as employers will need to adjust to new guidelines and potentially manage additional costs.

Our outsourced payroll services are designed to help businesses adapt seamlessly to these changes.

Statutory Probation Period

While employees will gain greater protections from day one under the proposed bill, the introduction of a statutory probation period will give employers more flexibility in managing new hires. The bill suggests a probation period of up to nine months, offering a “lighter touch” approach to dismissal during this time.

This will affect recruitment policies and how businesses handle the onboarding process.

To prepare for this potential change, consider our recruitment services, which can guide you through adapting your strategies.

Zero-Hours Contracts: Proposed Restrictions

If passed, the bill will introduce limitations on zero-hours contracts. Workers who have established a regular working pattern over 12 weeks will be entitled to a guaranteed-hours contract. However, workers who prefer to remain on zero-hours contracts will have the option to do so.

This change could significantly impact businesses that rely on flexible staffing models.

Our HR experts can help you assess your workforce and adjust your employment practices accordingly.

Flexible Working and Fire-and-Rehire Changes

Another proposed change includes making flexible working the default option, unless employers have a legitimate reason for refusal. This aligns with growing expectations for more inclusive and supportive workplaces, especially for those with gender pay gap concerns or female employees navigating menopause. Additionally, the bill seeks to ban fire-and-rehire practices, except in extreme financial circumstances.

These changes will require employers to revisit their current HR policies.

Our HR support services are on hand to help you make the necessary updates.

A Timeline for Employers: What to Expect

It’s important to remember that these proposed changes are not yet law and could undergo revisions as they pass through Parliament. Some measures could take effect next year, while others might be implemented over the next 18 months. We expect to see more details and clarifications during the Autumn Budget 2024.

Employers should start preparing now to avoid future disruptions. Our HR support, outsourced payroll, and recruitment services will help you stay compliant with any upcoming legal changes.

For expert guidance on how to navigate these potential legal changes, get in touch with Talk Staff today. Our team can provide tailored support to help your business prepare for the future.