Overview

This bill strengthens workers' rights in the UK by increasing protections against unfair dismissal and re-engagement on worse terms and conditions. It mandates employer consultations and information sharing before significant workplace changes affecting multiple employees, and provides avenues for redress through the Central Arbitration Committee and employment tribunals.

Description

The bill amends existing legislation, primarily the Trade Union and Labour Relations (Consolidation) Act 1992 and the Employment Rights Act 1996. Key changes include:

Employer Consultation and Information Disclosure

Employers with 50 or more employees must consult with employee representatives before making decisions that threaten the continued employment of 15 or more employees, or that lead to substantial changes in work organization or contracts. They must also disclose relevant information to these representatives upon request.

Protection Against Unfair Dismissal and Re-engagement

The bill makes any variation to an employment contract void if obtained under threat of dismissal and less favorable to the employee, unless the employer fully complied with consultation obligations. Unilateral variations by employers which are less favorable to the employee are also prohibited. Employees unfairly dismissed for refusing contractual variations have enhanced legal protections.

Redress Mechanisms

Employees can complain to the Central Arbitration Committee (CAC) about failure to consult or disclose information. The CAC can issue declarations and order rectifications. If re-engagement is offered on inferior terms following dismissal or non-compliance, employees can complain to an employment tribunal, potentially leading to compensation. Employers must also notify the Secretary of State in certain circumstances.

Government Spending

The bill is unlikely to significantly increase or decrease government spending in the short term. However, increased workload for the CAC and employment tribunals, and potential compensation awards, could lead to increased spending in the longer term. Precise figures are unavailable at this stage.

Groups Affected

• Employers: Businesses with 50 or more employees will face increased obligations regarding consultation, information disclosure, and potential legal challenges.
• Employees: Workers in larger companies will gain enhanced protection against unfair dismissal and changes to their contracts, improving their bargaining power.
• Trade Unions: Trade unions will play a more significant role in representing employees during consultations and in pursuing legal action.
• Central Arbitration Committee (CAC) and Employment Tribunals: These bodies will likely see an increase in cases related to this legislation.
• Secretary of State: The Secretary of State for Business, Energy and Industrial Strategy will receive notifications from large employers under this bill.

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