Question: I’ve heard that Labour’s Employment Rights Bill is due to be introduced in the coming weeks. I’m trying to get ahead of any changes that could affect my business. What provisions are expected in the Bill, and how can I start preparing for them now?
Dear Concerned Employer,
Thank you for your question! With the Labour Government now in power, there’s been a lot of buzz around the upcoming Employment Rights Bill, and it’s no surprise that employers are feeling the need to prepare. Labour made a pledge to introduce the Bill within 100 days of taking office, which means it should be presented to Parliament by Thursday 10th October at the latest – just 13 days away. While we’re still awaiting the final details, it’s important you know what changes to expect…
One of the central elements of the Bill focuses on improving the rights of workers on Zero-Hour Contracts. These employees will gain a right to have their contracts reflect the actual number of hours regularly worked. This means you’ll need to provide reasonable notice for shift alterations, and offer compensation for any shifts cancelled on short notice. The changes aim to offer workers more stability, but also mean you’ll need to prepare for tighter regulations on shift management.
Another significant update is their approach on Fire and Re-Hire Practices. Despite an updated statutory code being introduced in July 2024, Labour is pushing for even stricter regulations. If the Bill passes, we can expect a new statutory code aimed at making it harder for employers to fire staff only to rehire them under less favourable terms. While this isn’t new territory, employers will need to review their current procedures to ensure they remain compliant.
Labour is also looking to simplify the Statutory Recognition of Unions. The proposed legislation aims to simplify the process and create a clearer route for workers to gain union representation in the workplace. If passed, this could give workers more opportunities to join unions, which may have an impact on workforce management in businesses where union activity is usually minimal.
Another notable change is their emphasis on Flexible Working, which is set to become a day one right for employees. Employers will be expected to accommodate flexible working requests as far as is reasonably practicable, so having clear guidelines on managing this will be essential.
On top of this, Labour is planning to make Statutory Sick Pay (SSP) more accessible by removing the lower earnings limit and eliminating the three-day waiting period before SSP is paid. This will broaden the availability of sick pay, ensuring that even those on lower wages remain protected. This also means you’ll need to prepare for an increase in costs associated with sickness absence.
While we’re waiting on the final details, now is the time to start thinking about how these changes might impact your business. Ensuring your policies and procedures are aligned with the expected reforms will help avoid any nasty surprises when the new laws come into effect. If you need more specific advice on how to prepare, feel free to reach out to the Chamber Advice Line Service for FREE on 01455 852 037. Alternatively, you can book a complimentary, no-obligation One2One Business Review with a HR Business Support Manager. We’ll carry out a thorough gap analysis of your compliance, offer personalised advice, and help you prepare for the proposed changes. This valuable benefit is also included at no extra cost through your chamber membership.
