The King’s Speech confirmed the Employment Rights Bill, its aim is to ‘ban exploitative practices and enhance employment rights’. The Bill will be introduced within the first 100 days of the new Labour Government.
What will it include?
The Government has confirmed the Bill will include:
- The abolition of zero-hour contracts: workers will have a right to a contract that outlines the number of hours they regularly work, and with reasonable notice of any change in shift patterns.
- A ban on fire-and-rehire practices: the controversial act whereby staff are made redundant and then hired again on reduced terms, will be banned. The law will be reformed to provide effective remedies and replace the previous statutory code.
- A day-one right to not be unfairly dismissed: parental leave, sick pay and protection from unfair dismissal for all workers will be introduced, although probation periods can be implemented by employers while they assess new hires. It will also be unlawful to dismiss a woman who is returning from maternity leave for six months except in “exceptional circumstances”.
- Removal of the lower earnings limit on statutory sick pay: statutory sick pay will be available to all workers and the current three-day waiting period will be removed.
- A right to flexible working as a default: flexible working will be allowed from day one for all workers. Employers are “required to accommodate this as far as is reasonable”.
How can employers prepare?
The detail is not yet known but employers should now be reviewing policies and practices and considering what they need to do in preparation for the new changes.
Employers who rely on zero-hour contracts will need to provide an appropriately drafted agreement. They will also need to update dismissal policies to include a clear dismissal process and make employees aware of it. Flexible working is now a day-one right and so employers should ensure that their procedures are ready to address this. They will also need to be able to prove that they have tried to accommodate flexible working as far as reasonably practicable; failure to do so may result in claims against them.
Planning and process will help employers to adjust.
For assistance with these changes or any other employment related issue please contact Anna Illingworth at Rowberry Morris. anna.illingworth@rowberrymorris.co.uk.