29th October 2024
The government’s new employment rights bill is a major legislative overhaul. While many policies will require over two years to consult and implement, there are crucial changes that both employers and employees need to know about immediately.
Sarah Everton, Head of the Employment team at Myers & Co, commented on the new bill, she says:
“The new employment rights bill marks a pivotal shift towards greater protections and fairness in the workplace. With immediate changes affecting millions of workers, it’s essential for both employers and employees to stay informed and prepared for the upcoming changes. Proactively planning for the implementation of these policies will ensure smoother transitions and greater workplace harmony. ”
Employees will now be entitled to sick pay starting from the first day of illness, a change from the previous policy of beginning on day three. The statutory sick pay will also be revised to eliminate the lower earnings limit, granting all workers the right to sick pay from day one instead of day four.
These changes aim to provide stronger financial security for workers. This adjustment is particularly crucial considering recent global health challenges, emphasizing the importance of swift access to healthcare benefits. Employers are encouraged to update their policies and payroll systems accordingly to comply with these new regulations.
9 million workers will now be eligible for protection against unfair dismissal from their first day of employment. Previously, employees needed to have worked for two years to qualify for this protection
Additionally, new day-one rights are being introduced for paternity leave and unpaid parental leave, similar to the existing right for maternity leave from day one. A comprehensive review of all parental leave policies is also scheduled to occur alongside this bill.
There will also be a requirement for employers to establish a policy for bereavement leave.
Employees on zero-hours contracts, which are frequently seen as unfair by many, will now be able to request guaranteed working hours.
They will have the right to a guaranteed-hours contract if they work beyond a specified period, which the government initially proposed to be 12 weeks. If workers prefer to stay on a zero-hours contract, they can also choose to do so.
This change aims to provide more stability and predictability for workers who have often faced uncertainty regarding their income and working hours.
By offering the option of a guaranteed-hours contract, the legislation seeks to balance flexibility for employers with the need for security for employees. It is anticipated that this measure will help reduce the exploitation of workers in precarious employment situations and ensure they have access to consistent fair working conditions.
There will be a ban on fire and rehire, meaning employers cannot sack employees and rehire them on worse terms and conditions.
There is a caveat however in that businesses nearing bankruptcy might be allowed to change terms and conditions to stay afloat. Unions are expected to respond firmly to this, with many already expressing their discontent.
The legislation seeks to shield employees from abrupt and unfair shifts in their employment status, fostering transparency. Nevertheless, the government must clarify business policy adjustments during bankruptcy situations. Ensuring that workers’ rights and ethical practices are prioritised is crucial.
We will have to wait until Autumn 2026 for the consultation and introduction of the probation period changes.
The key aspect of these changes is an extended probationary phase to assess whether the individual is suitable for the position. The government plans to consult on a statutory probation period for new hires, though employees will retain the right to claim unfair dismissal.
The law on flexible working will make it the default option to work flexibly “where practical”. This means that employees will have the right to request flexible working arrangements from their first day of employment, rather than having to wait for six months as is the current requirement. Flexible working can include a range of options, such as part-time hours, job sharing, compressed hours, or remote working.
Additionally, the legislation will introduce stronger protections against dismissal during pregnancy and after returning to work from maternity leave. Employers will be required to provide a detailed explanation if they refuse a flexible working request, and employees will have the right to appeal such decisions.
This aims to create a more inclusive and supportive work environment, particularly for parents and caregivers who need to balance work with family responsibilities.
The bill will form a new enforcement entity known as the Fair Work Agency, which will amalgamate existing bodies responsible for upholding employment rights, including holiday pay. The comprehensive scope of the new agency’s responsibilities is expected to become clearer as the various elements of the bill are either consulted upon or enacted.
The government intends to introduce periodic reviews to ensure that the Fair Work Agency remains effective and responsive to the evolving needs of the workforce. These reviews will involve consultations with key stakeholders, including employers, employees, and unions, to gather feedback and make necessary adjustments. This proactive approach aims to foster a fair and balanced work environment that adapts to changing economic and social conditions.
The government intends to revise the Low Pay Commission’s responsibilities to consider the cost of living when setting the minimum wage and eliminate age bands that impose lower wages for younger workers. This will result in a pay raise for hundreds of thousands of young employees.
Regular reviews and adjustments will be mandated, reflecting economic conditions and living costs. This proactive measure underscores the government’s commitment to enhancing living standards and reducing economic disparities among workers.
The bill has considerable discrepancies when compared to the government’s initial promises. However, there is a plan to issue a document that will commit to implementing at least 30 additional proposals, including:
Myers & Co, with its expertise in employment law, is ready to help navigate the upcoming changes. We provide guidance on compliance with new minimum wage regulations and ensure fair pay practices. We also assist with accurate and transparent reporting of ethnicity and disability pay gaps.
Sarah Everton will be closely monitoring these developments and providing updates to help you navigate the changes. You can contact her on 01782 577000 or email sarah.everton@myerssolicitors.co.uk. Myers & Co has offices in Stoke-on-Trent, Staffordshire.
