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by Munro Research

Employment (Dismissal and Re-employment) Bill


Official Summary

A Bill to prohibit employers dismissing employees and subsequently re-employing them for the purpose of diminishing the terms and conditions of employment; and for connected purposes.

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Overview

This bill aims to prevent employers from unfairly dismissing employees and then rehiring them on worse terms and conditions. It makes this practice a form of unfair dismissal, offering legal protection to workers.

Description

The Employment (Dismissal and Re-employment) Bill amends the Employment Rights Act 1996. It introduces a new section (105A) defining unfair dismissal to include situations where an employee is dismissed and subsequently re-employed with inferior terms and conditions. "Terms and conditions" encompass remuneration and other employment-related matters, regardless of whether they're formally part of the contract.

The bill applies to England, Wales, and Scotland and comes into force two weeks after it receives Royal Assent.

Government Spending

The bill's impact on government spending is not directly specified. However, it may lead to increased costs associated with potential employment tribunals and enforcement of the new legislation. No specific figures are provided in the bill text.

Groups Affected

  • Employees: The bill primarily protects employees by making it illegal for employers to reduce their terms and conditions through dismissal and re-employment. This could lead to improved job security and fairer treatment.
  • Employers: Employers will be affected by the new restrictions on dismissal and re-employment practices. They may need to adjust their HR policies to ensure compliance with the new law. There is a potential for increased legal costs.
  • Employment Tribunals: An increase in cases related to this type of unfair dismissal is possible, leading to a higher workload for employment tribunals.
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