What will Labour’s Employment Rights Bill include?

The King’s Speech confirmed the Employment Rights Bill, a piece of legislation that will ‘ban exploitative practices and enhance employment rights’. The Bill will be introduced within the first 100 days of the new Labour Government and was part of the Party’s manifesto.

In this article, our employment lawyer Sungjin Park explains what will be included in the Bill and how the measures will impact employers.

The Bill’s provisions

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 Labour Party has been committed to reforming the rights of workers, so it is not surprising that this Bill has been confirmed. Whilst it will need to go through the parliamentary process, employers should now be reviewing policies and practices and considering what they need to do in preparation for the raft of new changes.

Employers who rely on zero-hour contracts will now need to ensure they consult a lawyer 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 this. Flexible working is now a day-one right and so employers should already have procedures in place to address this. They will also need to prove that they have tried to accommodate this as far as reasonably practicable; failure to do so may result in claims against them.

While the proposed changes may give employees more power in their working relations, employers can ease the stress by beginning to adapt to a more flexible working environment.

If you have questions or concerns about any of the provisions included in the Employment Rights Bill, please contact Sungjin Park.