The last twelve months has seen a great deal of change in the employment law landscape. Recent developments have introduced significant reforms aimed at enhancing worker protections and promoting fairer workplace practices. These changes, encapsulated in the Employment Rights Bill 2024, alongside other legislative updates effective from April 2024, mark a transformative shift in employment rights. Below we summarise and explore these changes in brief.
Key Reforms in the Employment Rights Bill 2024
1. Day-One Employment Rights
The Bill establishes several “day-one” rights, ensuring immediate entitlements for employees upon starting employment:
Statutory Sick Pay (SSP): Employees are entitled to SSP from the first day of illness, eliminating the previous waiting days and earnings threshold.
Parental and Paternity Leave: The qualifying period for parental and paternity leave is removed, allowing employees to access these entitlements from day one of employment.
Bereavement Leave: A new right to at least one week of bereavement leave is introduced, with specific details to be determined through regulations.
2. Enhanced Protection Against Unfair Dismissal
The Bill removes the two-year qualifying period for protection against unfair dismissal, extending this protection to approximately nine million workers from the outset of their employment.
3. Guaranteed Hours for Zero-Hours Workers
Employees on zero-hours contracts who have worked regular hours over a 12-week reference period will have the right to a guaranteed-hours contract. Employers are also required to provide reasonable notice of shift changes and compensation for shifts cancelled or reduced on short notice.
4. Restrictions on ‘Fire and Rehire’ Practices
The controversial practice of dismissing employees and rehiring them on less favourable terms, known as “fire and rehire,” is deemed an automatic unfair dismissal unless the employer can demonstrate financial necessity and that no reasonable alternative exists.
5. Strengthened Harassment Protections
Employers are mandated to take “all reasonable steps” to prevent sexual harassment in the workplace. Additionally, they will be held liable for harassment by third parties, such as clients or customers, if they fail to take appropriate preventive measures.
Additional Legislative Changes Effective from April 2024
6. Flexible Working Rights
The Employment Relations (Flexible Working) Act 2023 grants employees the right to request flexible working arrangements from the first day of employment. Employees can make two requests within a 12-month period, and employers must consult with the employee before refusing a request.
7. Carer’s Leave
Employees are entitled to one week of unpaid leave per year to care for a dependent with long-term care needs. This leave can be taken in full or half-day increments and is available from day one of employment.
8. Extended Redundancy Protection
Protection from redundancy is extended to employees during pregnancy and for six months following the end of maternity, adoption, or shared parental leave. Employers are required to offer suitable alternative vacancies to these employees before considering other candidates.
What does this mean for businesses?
While these reforms aim to enhance worker protections, they may present challenges for employers:
Tribunal Backlog: The introduction of new rights and protections is expected to increase the volume of employment tribunal claims, potentially exacerbating existing backlogs.
Administrative Burden: Employers may face increased administrative responsibilities to comply with new record-keeping requirements and to manage the expanded scope of employee rights.
Financial Implications: The removal of qualifying periods for various entitlements may lead to higher costs for businesses, particularly those with a high turnover of staff.
The Employment Rights Bill 2024 and associated legislative changes represent a significant shift towards enhancing worker protections in the UK. Employers must prepare for these changes by reviewing and updating their policies and practices to ensure compliance with these changes. While the reforms aim to create a fairer and more supportive work environment, careful consideration and planning will be essential to navigate the evolving employment landscape. With more than 37 years expertise in the field of Employment Law, Fitchett & Co is uniquely placed to advise on these changes and how they will affect your business or career.
Recent Comments