How To Prepare for the Employment Rights Bill 2024

One of the most controversial provisions is the introduction of ‘Day one’ rights for employees to claim unfair dismissal from their first day of employment.

But this is balanced by a new statutory probationary period – an “initial period of employment” – which is proposed to be 9 months.

During this time employers will be able to terminate employment without following the full procedural requirements so they can assess new starters.

This will be fleshed out in separate regulations and a consultation will determine the exact length and conditions of the probationary period.

Businesses need to prepare for this as it will impact onboarding and performance management.

The Bill changes Statutory Sick Pay (SSP).

It removes the 3 day waiting period so SSP is payable from day one of absence.

It also removes the Lower Earnings Limit (LEL) of £123 per week for SSP eligibility so even the lowest paid workers will be entitled to this benefit.

The government will consult on a SSP rate for lower earners which could lead to further changes.

Businesses should start reviewing their sickness policies and payroll systems now in preparation for the upcoming changes.

The right to request flexible working remains but the Bill strengthens employees’ ability to make those requests.

Employers will still be able to refuse requests but only if they can show reasonable statutory grounds for doing so.

This means employers will need to have processes in place for considering and responding to flexible working requests.

Businesses should make sure they have policies and training for managers on how to handle these requests fairly and transparently.

To address the issue of “exploitative” zero-hours contracts the Bill introduces a right to request a guaranteed hours contract after 12 weeks of continuous work based on the average hours worked during that period.

This means workers will be able to move to a stable contract if their hours become regular over time.

But for workers who want to stay on zero-hours contracts, this option will still be available.

Businesses need to prepare for these requests and have clear processes in place for handling them and reviewing how they schedule and communicate shift work.

The Bill also tackles the controversial practice of “fire and rehire” where employers fire and re-engage employees on worse terms.

Under the new rules, fire and rehire will be an automatic unfair dismissal except in very limited circumstances where a business is facing financial difficulties that threaten its survival.

So employers will need to explore all other options before using fire and rehire and any such actions will need to be fully documented.

Businesses should review their dismissal and restructuring processes to ensure they comply with the new rules.

The Bill increases protection for pregnant employees and new parents with extended protection from dismissal for 6 months after they return to work from family leave, including parental leave.

Specific regulations will set out the circumstances in which dismissals can still be permitted but businesses need to be aware of these protections when managing returns from family leave.

Changes to the Equality Act 2010 mean employers will have to take ‘all reasonable steps’ – a higher standard than before – to prevent sexual harassment in the workplace. This includes third-party harassment.

Sexual harassment will also be added to the list of protected disclosures under existing whistleblowing laws so employees who report incidents will have greater protection.

Businesses will need to review and update their training, reporting and prevention strategies to comply with these new responsibilities.

Large employers (250+ employees) will have to develop and publish action plans to address gender pay disparities and support employees through menopause.

This includes adhering to the updated guidance on gender pay gap reporting issued by the Government Equalities Office (GEO), which clarifies the requirements for employers while noting that the core calculation methods remain unchanged.

This goes further than the existing guidance so it’s a legal requirement to develop plans for improvement.

For businesses this means investing time and resources to analyse current pay data, identify the gaps and create concrete plans to close them.

And it highlights the need to create an inclusive environment for all employees.

The government has given the Low Pay Commission the power to take into account cost of living changes when setting the annual National Minimum Wage (NMW).

Age based pay bands will be scrapped so younger workers will get the same minimum wage as their older colleagues.

This will have a direct impact on payroll costs, especially for businesses with a younger workforce.

Businesses need to factor these changes into their budget planning and ensure their payroll systems can accommodate them.

The Bill brings back the two-tier code for public sector contracts so employees working on public sector contracts will have terms and conditions no less favourable than those of employees who were transferred from the public sector.

This is to protect employment conditions in public-sector outsourcing.

A new Fair Work Agency will be set up to oversee these changes and enforcement.

The agency will combine the functions of existing enforcement bodies such as the Gangmasters and Labour Abuse Authority into one body.

And the Bill also repeals the Strikes (Minimum Service Levels) Act 2023 and strengthens trade union rights.

This includes enhancing the role of trade unions in advocating for worker rights, addressing issues surrounding industrial action, pay negotiations, and access rights to workplaces.

For businesses, it’s essential to understand the new agency and the new trade union rights.

The Labour government is set to simplify the employment status framework by introducing a new single status of worker.

This significant change will abolish the current distinction between employees and workers, ensuring that all workers have access to the same rights and protections, regardless of their employment status.

This move aims to provide more clarity and fairness in employment law.

For businesses, this means a thorough review of employment contracts and policies will be necessary to ensure compliance with the new legislation.

The new single status of workers will encompass rights such as statutory sick pay, holiday pay, and protection against unfair dismissal.

While the exact details are still under consultation, it’s clear that this change will streamline employment status and enhance worker protections.

In a bid to provide more security and protection for self-employed workers, the government plans to introduce new rights, including the right to a written contract, protection against late payments, and access to health and safety and blacklisting protections.

These changes aim to bridge the gap between self-employed workers and employees in terms of rights and protections.

Employers engaging with self-employed workers will need to review and possibly revise their contracts and policies to align with the new legislation.

Employers are required to conduct regular health and safety risk assessments to identify and mitigate workplace risks.

This includes assessing risks associated with different employment statuses, such as zero-hours contracts and flexible working arrangements.

The government will introduce new guidance on health and safety risk assessments, including a code of practice for employers.

This guidance will provide clear advice on conducting thorough risk assessments and creating a safe and healthy work environment.

Businesses should ensure their health and safety policies are up-to-date and effectively communicated to all employees.