Is the Employment Rights Bill good for business?

Unfair dismissal. Protection from unfair dismissal will apply from the first day of employment, replacing the two-year qualifying period. Consultation is promised on a new probation period to assess an employee’s suitability. Additional protections during pregnancy, maternity leave and on returning to work are also included. Employers might become more cautious in their recruitment practices to minimise the risk of a mis-hire. However, in the longer term, these changes could improve outcomes for everyone. 

 

Flexible working. The option of flexible working for all employees from day one is already available. Employers can only refuse if it’s unreasonable. The Bill requires employers to give specific reasons for refusal. These might include cost, ability to meet customer demand, organising work amongst the staff, or the impact on performance. 

 

Zero-hours contracts. The Bill gives employees a right to contracts with guaranteed hours based on their regular hours over a defined period. However, they can choose to keep their original contract. This measure could cause problems for new employees who don’t have a regular pattern of work. The needs of people who want flexibility in their working hours, such as carers, also require consideration. 

 

Parental rights. Parents and families will have day-one rights for paternity, parental, and bereavement leave under the Bill. This replaces the requirement for 26 weeks of continuous service. In the longer term this might provide a framework for additional compassionate leave rights. 

 

Sick pay. Statutory Sick Pay (SSP) will become available from the first day of illness. This is regardless of earnings and will replace the current three-day waiting period. 

 

Fire and rehire. Additional measures to prevent employers requiring people to accept new contracts of employment won’t affect reputable employers. The day-one protection against unfair dismissal means fire and rehire or replace practices are automatically disallowed. Employers must provide evidence of financial difficulties or an unavoidable need to change contractual terms. Consultation and notification requirements will apply when employers plan to make 20 or more redundancies within 90 days. A Code of Practice was published in July. 

 

Sexual harassment. Last month the Worker Protection Act came into effect. The Bill requires employers to take ‘all reasonable steps’ to prevent sexual harassment at work. If a tribunal finds an employer has failed to protect employees it can increase compensation by 25%. The Bill also includes protection against harassment from third parties. 

 

Equality. The Bill requires organisations with 250 or more employees and public sector employers to publish an equality action plan. This is in addition to the requirement to publish gender pay gap data. In the future extending the requirement to include ethnicity and disability is also a possibility. 

 

Fair Work Agency. A Fair Work Agency will have enforcement responsibilities for minimum wages, statutory sick pay, and the employment tribunal penalty scheme. It will also cover modern anti-slavery measures and holiday pay policy. A single point of contact, replacing multiple other agencies, should simplify processes for both employees and employers. 

 

Trade unions. The Bill introduces new workplace rights for access to trade union representatives. Employers must let employees know they can join a union. Trade unions can access workplaces to recruit and organise employees. Changes to recognition thresholds could mean many more employers will need to work with trade unions. 

 

From our experience most good employers will respond constructively to the proposals in the Bill. With more than 22 years’ experience Ascendant Recruitment can help you review and update your recruitment strategy.