Overview

This bill aims to prevent employers from unfairly dismissing employees and then re-hiring them on worse terms and conditions. It amends the Employment Rights Act 1996 to make this practice illegal.

Description

The Employment (Dismissal and Re-employment) (No.2) Bill seeks to add a new section (105A) to the Employment Rights Act 1996. This new section will define unfair dismissal to include situations where an employee is dismissed and subsequently re-employed with less favourable terms and conditions. "Terms and conditions" are broadly defined to include pay and other aspects of employment, whether or not they are explicitly written into the contract. The bill applies to England, Wales, and Scotland and will come into effect 14 days after it receives Royal Assent.

Government Spending

The bill is not expected to directly impact government spending. The cost of enforcing the new legislation might increase slightly but no figures have been provided.

Groups Affected

This bill primarily affects:

• Employees: The bill protects employees from being unfairly dismissed and re-hired on inferior terms.
• Employers: Employers will need to ensure that dismissal and re-employment practices comply with the new law, avoiding actions that could be construed as a deliberate attempt to reduce employee benefits.
• Employment Tribunals: An increase in claims related to this type of unfair dismissal is anticipated, resulting in an increased workload for employment tribunals.

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