The Employment Rights Bill: What Businesses Need To Do
The Employment Rights Bill signals some significant changes for businesses coming over the next two years. Some of the bill will be implemented sooner than other sections but understanding what is coming is essential for every employer.
We’ve put together some of the key details that all employers should be aware of and what actions they might need to take.
Day one rights
Day one rights for employees have been the biggest headline change in law from The Employment Rights Bill. Currently, an employee needs to work at a business for two years to access some rights such as unfair dismissal, unless the dismissal is related to a protected characteristic.
Instead, all employees will have rights from day one. This will include unfair dismissal but also other rights including paternity leave and unpaid parental leave.
Employers will also need to have a bereavement leave policy in place. This policy should offer one week of bereavement leave as a minimum.
Probationary periods
Following on from day one rights, there will be a consultation on probationary periods. It’s expected that there will be a “lighter touch” approach to letting an employee go during their probationary period. While we do not yet know what this lighter touch may look like, there is a suggested 9-month probationary period for employees.
Flexible Working
The Employment Rights Bill is placing flexible working as the default option unless it is not feasible for the business. The onus will be on the employer to demonstrate why it is not feasible rather than the employee to demonstrate why it is. This is a big change and has been welcomed by people with disabilities, parents and those with caring responsibilities.
As part of the flexible working changes, there will be stronger protections for dismissal during pregnancy, maternity and returning to work after maternity.
Employers of more than 250 people will need to draw up action plans to address gender pay gaps and menopause as part of an overall Equality Action Plan.
Sick pay
Access to sick pay will begin from the first day of absence rather than the fourth. Statutory sick pay is £116.75 a week and can be paid for up to 28 weeks as long as the employee earns an average of £123 a week.
Zero-hours contracts
Anyone on a zero-hours contract who does regular hours over a defined period will have a right to request a guaranteed-hours contract. People will have the right to remain on a zero-hours contract if they prefer.
Fire and rehire
Fire and re-hire practices will be banned except under exceptional circumstances. This is to prevent another P&O Cruises situation from happening.
Minimum Wage
The Low Pay Commission’s remit has been expanded. It will now take the cost of living into account when setting the minimum wage. The age bands for minimum wage will also be removed which will mean increased wages for hundreds of thousands of young people.
Trade unions
The bill also extends the rights of trade unions. Employers will need to provide a written statement of rights to join a trade union. Unions can request an “access to workplace” agreement from employers to recruit and represent members.
Plus, the requirement for 50% of members who are eligible to vote for industrial action, to do so for the vote to be valid, will be removed.
The Employment Rights Bill
The Employment Rights Bill means implementing some significant changes for employers. Danton is here to help with the necessary actions as and when it’s right to do so.
We offer support packages for businesses who want extra help navigating these changes.
Do get in touch if you need help understanding how these changes will impact your business.