Key changes in the proposed legislation:
- Introduce unfair dismissal rights from the start of employment as a ‘Day 1’ right
- Provide that SSP will be paid from ‘Day 1’
- Further regulate the use of ‘fire and rehire’ practices
- Make flexible working the default position at the start of employment
- Further regulate the use of zero hours contracts
- Extend family friendly rights including additional protection for employees from dismissal during or following return from maternity leave
- Introduce full liability on employers for harassment by third parties
- Make it easier for Trade Unions to seek formal recognition by employers and provide additional workplace access rights when seeking to recruit new members.
Our experts summarise the proposed changes in legislation, consider some of the practical issues which might arise, and discuss possible changes that employers may need to make to their management of staff.
For advice on planning your workforce effectively, or if you need further employment advice following the publication of the latest Employment Rights Bill, please contact one of our employment law solicitors by email or call on 03333 231 580.
Questions from the audience about changes to the Employment Rights Bill
Do you think there is a risk that some individuals might try to exploit the new laws, alleging harassment by a customer and knowing that a pay out is preferable to falling out with the customer?
While it is possible that this might happen, the actual risk of a fabricated allegation of this nature is very low indeed. Surveys have shown that around 70% of cases of actual sexual harassment are not reported at all, highlighting how difficult it is for employees to feel comfortable advancing any allegation around such a sensitive issue. Of allegations that are actually made, less than 5% turn out to be deliberately false. Putting that together, the risk of someone fabricating and then advancing an allegation of this kind is minimal. Therefore it should not be a factor for any employer considering appropriate steps to protect its employees from sexual harassment by third parties.
For day 1 rights, is this the start date marked on their contract (csd), or the day of their actual 1st shift (if they work hourly)?
With some exceptions (where the dismissal is automatically unfair (e.g. the employee is pregnant), where the dismissal is or relates to the employee’s political opinion or affiliation or the dismissal is for a spent conviction) the unfair dismissal protections will apply from day one of employment/ first shift and not the start date marked on their contract if that is earlier.
Is there a change to the minimum amount of time a maternity returner can then be eligible for a new maternity leave? So if they come back from maternity leave pregnant and will need to go on leave again – has this changed?
No, the right to maternity leave remains a day one right, and there is no minimum period of time that the woman would need to return to work to be entitled to a second period of maternity leave. There may be impact on maternity pay, and if the employee does not qualify for Statutory Maternity Pay they may qualify for Maternity Allowance. Employer enhanced maternity pay may be subject to separate provisions, too.
When are the changes to zero hours contracts coming into effect? Is that also 2026?
All of Labour’s proposed reforms are subject to consultation and must pass through Parliament. We do not expect to see any of the reforms implemented until late 2025 or early 2026.
For the zero hours contract, what happens if the employee decides not to work, does the employer still have to pay them hours?
No, the employee would need to work to be entitled to pay.
How will the changes impact on non-unionised workplaces, and what can employers do to get ahead of the curve?
The government proposes that a Union which is not recognised in the workplace will be given the opportunity to recruit and organise within a workplace with the aim of gaining recognition. This is not yet law and, as with many of the government’s proposed changes to employment law, its proposals will be supported by detailed Regulations which will deal with the detail. It is thought that Trade Unions are likely to focus their (limited) resources on larger, well known employers in the first instance. If that applies to you, you should contact us for further advice.
Note, you will also need to put in your statutory Particulars of Employment the right of an employee to join a Trade Union. This may be the only, immediate, thing you will have to do once the relevant legislation is passed. (Employers may also be obliged to inform their employees/workers that they may join a Union once they are employed, but that is not yet clear.)
Do we have a date for the TU rules coming into force?
No we do not.
DISCLAIMER
This webinar is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of the contents of this webinar.
