The upcoming Employment Rights Bill, expected within the Government’s first 100 days, is full of positives for workers, but headaches for businesses and HR. Further detail has been provided in the background briefing notes for the King’s Speech, and below is a brief summary of what is on the cards:
- New starters will enjoy parental leave, sick pay and protection from unfair dismissal from day one.
- “Exploitative” zero-hour contracts will be banned. Workers will soon have the right to a contract reflecting their regular hours and better protection in relation to shift cancellations.
- Goodbye to fire and rehire? The Government plans to end the “scourges” of fire and rehire with tougher rules and penalties, albeit we expect this to be watered down by the time legislation is passed.
- Sick pay is getting a boost. The lower earnings limit and three-day waiting period are set to be scrapped.
- New mums get extra protection. Dismissals within six months of returning from maternity leave will be banned, with limited exceptions.
- Flexible working becomes the “default”. Employers will need to be more accommodating from day one, allowing flexible working wherever reasonable.
- A new single enforcement body is on the way. The ‘Fair Work Agency’ will have power to enforce workplace rights.
- Fair Pay Agreements are coming to the adult social care sector. The Government is also considering rolling these out to other sectors in due course.
- Trade unions are set for a power boost. Expect the removal of restrictions on trade union activity (including the previous Government’s approach to minimum service levels), a simplified process for trade union recognition and enhanced access rights within workplaces.
The Draft Equality (Race and Disability) Bill will also give ethnic minorities and disabled people the full right to equal pay and introduce mandatory ethnicity and disability pay reporting for larger employers.
It is clear that the new Government means business when it comes to workers’ rights. We’ll be keeping a close eye on developments and providing updates as things unfold.
If you have any questions, or would like to find out more about how our Employment team could help you, please contact Sarah Lee.
