Overview

This bill aims to strengthen workers' rights in the UK by increasing protections against unfair dismissal and re-engagement on worse terms and conditions. It introduces new requirements for employers regarding consultation and information disclosure before making significant changes to employment contracts or dismissing employees.

Description

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

Employer Obligations:

• Consultation: Employers with 50 or more employees must consult with appropriate employee representatives before dismissing 15 or more employees (for reasons other than conduct or capability) or making substantial changes affecting 15 or more employees' work organization or contracts. This consultation must begin as soon as reasonably practicable and provide sufficient time to reach an agreement.
• Information Disclosure: Employers must disclose relevant information to representatives upon request, unless disclosure would seriously harm the undertaking. The Central Arbitration Committee (CAC) can order disclosure if a dispute arises.
• Notification to Secretary of State: Employers affecting 50 or more employees at one establishment must notify the Secretary of State within a specified timeframe (the longer of 45 days or the employees' notice period) about potential dismissals or substantial changes.

Employee Protections:

• Contract Variation: Contract variations obtained under threat of dismissal and less favorable to the employee are void unless the employer fulfilled all consultation and disclosure obligations.
• Unilateral Contract Variation: Clauses permitting employers to unilaterally change contracts to the employee's detriment are void.
• Unfair Dismissal: Dismissal for refusing unfavorable contract variations is considered unfair unless the employer demonstrates justification. Non-compliance with consultation and disclosure requirements can also lead to unfair dismissal claims.
• Compensation: Employees successfully claiming unfair dismissal due to these issues can apply for compensation.

Government Spending

The bill's impact on government spending is not directly specified in the text. Increased workload for the CAC and employment tribunals, and potential increased benefit payments due to prolonged unemployment are possible indirect costs. There is also a potential for increased government oversight due to mandatory notifications.

Groups Affected

• Employers: Larger employers (50+ employees) face increased administrative burdens, consultation requirements, and potential legal challenges. They may also incur costs associated with compliance and potential compensation claims.
• Employees: Employees in larger workplaces gain stronger protections against unfair dismissal and detrimental contract changes. Improved consultation processes aim to avoid redundancy or unfavorable contract changes, giving workers more influence and potentially mitigating job losses.
• Trade Unions: Trade unions are empowered to act as representatives for workers, participating in consultations and potentially initiating legal action on behalf of their members.
• Central Arbitration Committee (CAC) and Employment Tribunals: These bodies will likely see an increase in the number of cases related to this legislation.

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