Does the Employment Rights Bill go far enough?

The government has claimed that the changes in its Employment Rights Bill (the Bill) — published on 10 October — are centred around economic growth. It includes both the enhancement of worker protections and the promotion of fair employment practices.

Whilst there is no doubt that it proposes some of the largest changes to employment law and workers’ rights we have seen in recent decades, some sectors are asking — does it go far enough?

It is clear when reading the first draft that if the government intends to deliver on its manifesto promise in its New Deal for Working People, then there is still some way to go.

What does the Bill cover?

  • Day one rights and unfair dismissal rights: The government has proposed a statutory probationary period of nine months, replacing the current two-year qualifying period for employees to claim unfair dismissal.
  • Statutory Sick Pay (SSP) from the first day: SSP will be payable from the first day of absence, removing the +current three-day waiting period. The Lower Earnings Limit for qualifying for SSP, which is currently set at £123.00 per week, is also to be removed.
  • Ban of zero-hour contracts: The government proposes to give workers on a zero-hour contract the right to move to a guaranteed hours contract.
  • No more fire and rehire: Fire and rehire practices will constitute an automatic unfair dismissal (rather than in limited circumstances).
  • Flexible working rights from day one: Employees will have the right to work on a flexible basis from day one; however, this must be requested. Employers will still be able to refuse a flexible working request on statutory grounds.
  • Trade union rights: The Bill intends to repeal the Strikes (Minimum Service Levels) Act 2023 and remove the 2016 ballot thresholds, making it easier for unions to take industrial action.

Until these measures are implemented, employers are encouraged to use alternative ways of resolving disputes — including voluntary agreements — rather than imposing minimum service levels on trade unions.

Red tape

It is worth noting that the Bill does little to address the complex requirements of notices for industrial action and balloting. These have been heavily criticised in the past as placing unnecessary amount of red tape on trade union activity.

Trade unions are stuck with complex notice requirements before they start their balloting process. They must identify categories, workplaces and detailed explanations for each of the affected employees, which is complicated and time consuming.

Next steps

The government has however published a next steps document, which outlines further reforms they hope to implement tin the future, meaning further changes may well follow.

Further detail is expected in relation to the right to switch off, an extension of equal pay law to include race and disability, moving towards a single status of worker, and reviewing the parental leave and carer’s leave system and much more.

Authors:
Omar Ghaffoor, Employment Solicitor
Megan Knight, Graduate Solicitor Apprentice