On Thursday 10th October 2024, the new Employment Rights Bill was introduced into Parliament. This Bill makes provisions for 28 different employment law reforms.
What are these reforms and what do they mean for businesses and employees?
Among the changes proposed are enhanced rights for workers around flexible working. The Government saw the impact that flexible working had during the pandemic to broaden the Labour market base, particularly for women and people with disabilities. Too many people find the current system isn’t compatible with the realities of everyday life, whether that’s raising children or supporting a loved one with a health condition. The Government believes that everyone who can work remotely should have a legal entitlement to do so from day one of their employment. With 8% of all businesses and 20% of businesses with 10 or more employees reporting that they are experiencing worker shortages, these reforms are hoped to go a long way to rectify these issues. The Government hopes these reforms will have a positive impact on getting the Labour market moving again which is essential to economic growth.
Although the previous Government made flexible working from day one a right to all employees from April of this year, the new Employment Rights Bill will go further and make the right the default position, allowing employers to only deny this right where there is one of the current statutory grounds for refusing the request.
The Bill also looks to enhance the rights of workers with regards to rights to sick pay and protection against unfair dismissal from day one of employment contracts. Sick pay will be available from the first day of sickness as opposed to the end of the first three days of sickness. Rights to sick pay will also be opened up to workers who are currently excluded because they earn below the lower limit of £123 per week. Other “day one†rights that the Bill proposes are rights to paternity leave and parental leave. It also provides for increased protection from sexual harassment in the workplace, going further than the new positive duty to prevent sexual harassment when it takes effect on 26 October 2024.
The Bill also looks to make amendments to the Equality Act 2010 to enable the Government to require private sector employers with 250 employees to create action plans to address gender pay gaps and create menopause support policies. There will be new protections from dismissal for women whilst pregnant and on maternity leave and within six months of returning to work in specific circumstances.
The Bill will end exploitative zero hours contracts, following research that shows 84% of zero hours workers would rather have guaranteed hours. They, along with those on low hours contracts, will now have the right to a guaranteed hours contract if they work regular hours over a defined period, giving them the security of earnings whilst allowing people to remain on zero hours contracts where they prefer to.
Comment
Most of the new rights and obligations created by the Bill are unlikely to be in force until 2026 so businesses have time to make necessary changes and adjustments to meet the new requirements and responsibilities placed upon them. Employers will need to build new protections into dismissal risk assessments when they come into force.
How can we help?
Hannah Steenkamp is a Solicitor Apprentice.
If you are an employer and would like advice on how the new Bill will affect your business or you are an employee with concerns regarding your employment rights, please contact Hannah on 01245 584523 or complete our online enquiry form.