Overview

This bill strengthens worker protections against unfair dismissal and re-engagement on worse terms. It introduces new requirements for employers to consult with employee representatives before making significant changes to employment, and provides avenues for redress if these requirements are not met.

Description

The bill amends existing employment and trade union laws. Key changes include:

Consultation and Information Disclosure:

For employers with 50 or more employees, mandatory consultation with employee representatives is required before dismissing 15 or more employees (excluding dismissals for misconduct or poor performance) or making substantial changes to work organisation or contracts affecting 15 or more employees. Employers must also disclose relevant information to representatives. Failure to comply leads to complaints to the Central Arbitration Committee (CAC), potentially resulting in declarations of non-compliance and injunctions.

Protection of Contracts:

The bill voids contract variations obtained under threat of dismissal if less favorable to the employee, unless the employer fulfilled all consultation and information disclosure obligations. It also voids clauses allowing employers to unilaterally vary contracts to the employee's detriment.

Unfair Dismissal:

The bill modifies unfair dismissal rules. If an employee is dismissed for refusing a detrimental contract variation or due to employer non-compliance with consultation/information duties, the employer bears a heavier burden of proof. Reinstatement or re-engagement orders can only be denied if it would likely cause employer insolvency within three months.

Trade Union Duties:

The bill limits the protection trade unions have against certain tort liabilities if their actions relate to employer proposals for detrimental contract changes coupled with dismissal threats.

Notification to the Secretary of State:

Employers with 50 or more employees at one establishment must notify the Secretary of State of proposed dismissals or substantial changes to employment, at least 45 days or within the required legal notice period, whichever is longer.

Government Spending

The bill's impact on government spending is not explicitly stated in the text. It is likely to involve some administrative costs associated with overseeing compliance and handling complaints.

Groups Affected

• Employers: Larger employers (50+ employees) face increased obligations regarding consultation, information disclosure, and notification to the Secretary of State. Non-compliance can lead to significant costs and legal action.
• Employees: Employees in larger workplaces gain stronger protections against unfair dismissal and detrimental contract variations. They have clearer avenues for redress if employer obligations are not met.
• Trade Unions: Trade unions have a role in representing employees in the consultation process. Their liability protection is modified depending on actions taken in response to employers proposals.
• Central Arbitration Committee (CAC): The CAC will handle complaints about employer non-compliance with consultation and information disclosure requirements.
• Employment Tribunals: Employment Tribunals will handle complaints about unfair dismissal related to contract variations and non-compliance with the new consultation and information requirements.
• Secretary of State: The Secretary of State receives notifications and may take enforcement actions.

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