Today (October 10th 2024) the Government announced its proposed Employment Rights Bill, promising significant changes, what are these changes and what does it mean for your business?
Well in terms of what it means, for now nothing has changed and timescales vary as to when we can expect to see the proposals become legislation, however it is likely that the majority of reforms will not take effect until 2026.
In the meantime below is an outline of the government proposals.
Removing the 2 year qualifying period, this would mean that employees have day 1 rights against being unfairly dismissed. Although the Government have stated that they are in favour of statutory probation periods, thought to be for 9 months, during in which time employees could be dismissed following a modified procedure.
Workers would be entitled to Statutory Sick Pay (SSP) from day 1 of illness rather than the current day 4. along with removal of the lower earnings limit for SSP, this is currently set at £123 per week, meaning anyone earning less than this cannot claim. Whilst the limit will be removed it will be replaced with a lesser limit.
Paternity leave, unpaid parental leave and unpaid bereavement leave will be a day 1 rights.
Flexible working requests, any requests will need to be considered from day 1 and employers will be expected to accommodate them unless they can prove it is unreasonable. The Government has stated that the process will be improved with clear legislation.
Ending the use of zero hours contracts and the use of fire and rehire practices.
Strengthening the laws protecting against dismissal for pregnant women and mothers on maternity leave.
Larger employers will be required to create action plans around addressing the gender pay gap and supporting employees through the menopause. Further legislation is planned to expand the Equality Bill making it mandatory for large employers to report ethnicity and disability pay gaps.
Other reforms which were not included but are likely to form part of the Governments ‘Next Steps’ plan as guidance rather than legislation are, the ‘right to switch off’. The Government also plans to consult on single worker status and review parental leave and carers leave systems.
The removal of the unfair dismissal qualifying period is causing waves and at the moment it is unclear what the statutory 9 month probation period would look like and how it will be managed. It is anticiapated that day 1 right will come into effect in autumn 2026, meaning that new employees rights to unfair dismissal claims will reduce over that period, i.e employees starting now would wait 2 years, starting in 6 months would have 18 months and so on. In the meantime it makes sense for businesses to ensure they tighten up on their probatio periods and follow best practice now in readiness for the change in law.
Watch this space for further updates and for any support on any of these issues or to implement probation periods and manage best practice contact me at bev@bdhr.co.uk.
