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by Munro Research

Employment (Dismissal and Re-employment) (No. 2) 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 illegal, offering employees stronger protection against this form of exploitation.

Description

The Employment (Dismissal and Re-employment) (No.2) Bill amends the Employment Rights Act 1996. It introduces a new section (105A) that defines unfair dismissal as including situations where an employer dismisses an employee with the primary intention of re-employing them on less favourable terms. "Terms and conditions" are broadly defined to include pay and other aspects of employment, whether or not they're explicitly in the contract.

The bill applies to England, Wales, and Scotland and comes into effect 14 days after it receives Royal Assent.

Government Spending

The bill doesn't directly specify government spending. However, increased legal claims and potential enforcement costs might result in increased government expenditure. No figures are currently available.

Groups Affected

  • Employees: The bill directly protects employees from being forced into accepting reduced pay, benefits, or other working conditions through dismissal and re-employment.
  • Employers: Employers engaging in this practice will face legal repercussions and potential claims for unfair dismissal. This could lead to increased costs and administrative burdens.
  • Employment Tribunals: An increase in related cases is expected, leading to a potential rise in workload for employment tribunals.
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