On the 10th of October 2024, the Labour government passed the highly-anticipated 'Employment Rights Bill'. The bill aims to tackle poor working conditions and promote economic growth - benefitting businesses and workers alike.
The new Employment Rights Bill is applicable across Great Britain. (That’s England, Scotland, and Wales – not Northern Ireland). Employers must ensure their business stays on the right side of the bill and all its legislative requirements.
Peninsula offers expert advice on employment law compliance. We also offer 24-hour HR advice – preparing your business for any new workplace changes. Want to find out more? Contact us on 0800 028 2420 and book a free consultation with an HR consultant today.
Now, let’s look at what the Employment Rights Bill includes, and how these legal changes will impact your business for the better.
What does the new Employment Rights Bill cover?
There are numerous legislative changes that the Employment Rights Bill 2024 covers. Let's dive deeper into the main areas:
Ban on exploitative zero-hour contracts
The bill states employers can no longer use zero-hour contracts that exploit or mistreat workers. You must provide them with contracts that reflect regular work patterns. Employers are also obliged to give reasonable notice and compensation for any shift changes or cancellations these workers face.
End ‘fire and rehire’ schemes
The bill puts a stop to ‘fire and rehire' and 'fire and replace' schemes that leave working people at the mercy of bullying threats. Instead, the Labour government will provide effective methods to replace inadequacies from the previous government’s statutory code on dismissal and re-engagement.
Introduce basic workers’ rights from day one
Workers now receive numerous statutory rights from the first day on their job. This can range from parental leave rights to protection from unfair dismissal. Day-one rights apply irrespective of their status, position, or pay under the new bill.
Extend probation periods
Probation periods will be extended from the previous length; and new hires have access to this from first day. The bill highlights that employers must conduct proper assessments on their employees’ suitability for a role, as well as reassure them of their day-one rights.
Provide sick pay rights for workers
Statutory sick pay rights are now available for workers. The government will remove the lower earnings limit and waiting period requirements for the payment. The law also ensures a fair earnings replacement for those who earn below the current sick pay rate.
Better flexible working arrangements
Workers now have the right to request flexible working arrangements from their first day of employment. (Employees can also make two requests per year). Employers must respond to requests within two months of receiving them. And they can only deny a request if it falls within one or more of the eight statutory reasons.
Promote the right to switch off
The bill promotes the right to switch off from work. Employers will no longer be able to make unnecessary communication with employees outside their working hours. The focus here is to establish better work-life balance for all staff members. It also looks into promoting sufficient rest periods between workdays.
Legal protection for pregnant women
New mothers now have legal protection from dismissal for at least six months of them returning to work. The bill also looks into providing better support for employees going through the menopause at work, whatever stage this may be.
Establish new Fair Work Agency
The government will establish a new Single Enforcement Body called the ‘Fair Work Agency’. This strategy aims to strengthen the enforcement of statutory employment rights across all business industries.
Better pay in adult social care
The bill sets to improve salary rates in the adult social care sector. After appropriate reviews, the government will assess how these changes perform and apply them to relevant care area.
Reinstate School Support Staff Negotiating Body
The bill will reinstate the ‘School Support Staff Negotiating Body’. The scheme will introduce national terms and conditions for schools, build career progression pathways, and provide fairer salaries to support staff.
Update trade union laws
The bill presents updates on trade union legislation - aligning them with current economic needs. This includes removing unnecessary restrictions on trade union activity, like minimum service for new employees. The bill also ensures better industrial relations between businesses and staff; and looks into areas like negotiations and bargaining.
Are there other laws being passed in connection to the Employment Rights Bill?
Yes, within Labour's manifesto, there are other laws and legislative changes set to pass in connection to the Employment Rights Bill. The government promised to draft them within their first 100 days in charge. However, we can't say whether they will pass before the end of the year.
Despite that, let’s take a look at potential new laws and legislative amendments:
The Equality (Race and Disability) Bill aims to tackle inequality by providing full rights to equal pay for ethnic minorities and disabled people. The bill also hopes to introduce mandatory ethnicity and disability pay gap reporting.
The Worker Protection Act is set to pass on the 26th of October 2024. Employers have a legal duty to prevent sexual harassment of its workers. The government is working on strengthening the process of prevention, as well as highlighting reasonable steps and procedures.
The Employment (Allocation of Tips) Act passed on the 1st of October 2024. Under this law, employers must distribute qualifying tips between workers fairly. This act also forces businesses to share tips without making unlawful deductions to wages or other forms of income.
There are other legislative changes that the government plans to present in relation to the Employment Rights Bill. For example:
- Introducing the new ‘single worker status’.
- Reviewing the paternity, parental, and bereavement leave framework.
- Extending collective redundancy consultation requirements.
- Aligning Minimum Wage to tackle low pay and cost of living issues.
Get expert advice on the new Employment Rights Bill with Peninsula
Employers have all kinds of legal responsibilities relating to their staff and workplace. One wrong move and you could end up causing serious legal complications for yourself and the overall business.
Peninsula is here to provide expert advice on the new Employment Rights Bill. We also offer 24-hour HR advice – keeping your business compliant with new laws and minimising any impacts on your growth and success.
Want to find out more? Contact us on 0800 028 2420 and book a free consultation with an HR consultant today.
