If you work in HR, unless you’ve been living under a rock, you’ll know that the Employment Rights Bill is currently making its way through Parliament. MPs recently backed the Employment Rights Bill after its third reading in the House of Commons and it is now progressing through the House of Lords for further scrutiny.
Dubbed ‘the biggest change to workers’ rights in a generation’ by the government, the Employment Rights Bill was first introduced last October, meeting their election pledge to introduce changes within 100 days of coming into office. However, this version was by no means the finished article, and a lot has happened since then.
Following several public consultations and many committee meetings, 269 amendments to the Bill have been tabled. These were then discussed and voted on by committee members, to reshape it as it made its way through in the Commons and onto the House of Lords. 149 of these amendments were agreed to by the committee.
There’s still a way to go until the Bill becomes law, so it could still change again, but here are just some of the latest updates and what the amendments will mean for businesses.
Extending zero-hour contract protections
One of the biggest changes is the extension of the zero-hour contract protections that were already contained within the Bill to cover agency workers. This means agency workers will also be entitled to a guaranteed hours contract offer and a right to compensation where shifts are changed or cancelled without reasonable notice.
Statutory sick pay
Under the current iteration of the Bill, statutory sick pay will be available to all workers regardless of earnings. It will be paid at a rate of either 80% of weekly earnings, or the flat rate, whichever is lower, from the first day of sickness. This will increase the cost of absence for businesses with workers who were previously not paid for sickness now potentially entitled to up to £100 per week.
Maximum protective award
Another successful amendment saw the maximum compensation that a tribunal can award double, increasing from 90 days of gross pay to 180 days. This will be in instances where a business has failed to correctly consult in large redundancy or fire-and-rehire processes.
Enhanced Trade Union rights
There have been several amendments to the Bill that will offer trade unions enhanced rights, including the introduction of a framework whereby trade unions can request an ‘access agreement’ with an employer and simplification of the statutory recognition process.
Fair Work Agency
The Bill now includes reference to a new regulatory body that will have the powers to bring an employment tribunal claim on behalf of an individual who is unable or unwilling to do so themselves. Where an individual has started proceedings, the agency will be able to provide legal support, assistance, or representation.
This new agency will also be granted the powers to enforce the payment of statutory payments to employees, having the ability to recover owed money quicker than through the tribunal process.
Bereavement leave
In the original bill, the UK government planned to introduce bereavement leave as a statutory right, which would incorporate the existing right to parental bereavement leave. However, the bill has now been amended to extend the parental bereavement element to miscarriages before 24 weeks of pregnancy.
More to come?
The Employment Rights Bill is still going through the legislative process. Therefore, we cannot be certain that all, or any, of these updates will be in the final legislation. However, as we get further down the line, if something is currently in the Bill then that is a pretty good indicator that it will make it all the way through to the final version.
We can expect to see a significant rise in the number of employment tribunal claims being brought once these changes come into law. It’s therefore more important than ever for businesses to ensure they are across all potential changes, updating policies and contracts as needed to remain fully compliant.
