Overview

The Employment Rights Bill aims to improve employment rights for workers in the UK, particularly those on zero-hours contracts, by introducing guaranteed hours, reasonable notice for shifts, and payment for cancelled or changed shifts. It also makes changes to flexible working requests, sick pay, parental leave, protection from harassment, redundancy procedures, and the enforcement of labor market legislation.

Description

This bill significantly alters UK employment law. Key changes include:

Zero-Hours Contracts and Shift Work

The bill introduces a right for eligible workers on zero-hours contracts (and similar arrangements) to be offered a minimum number of guaranteed hours based on their average working hours over a reference period. Employers must provide reasonable notice of shifts and pay compensation for short-notice cancellations, changes, or curtailments. The Workers (Predictable Terms and Conditions) Act 2023 is repealed.

Flexible Working

The bill strengthens the right to request flexible working, limiting employer refusals to specific, justifiable reasons, which must be clearly explained to the employee.

Sick Pay

The waiting period for statutory sick pay is removed, and the lower earnings limit will be adjusted.

Leave Entitlements

Qualifying periods for parental and paternity leave are removed, enabling more parents to access these benefits. Changes are also made to bereavement leave, extending it and widening eligibility.

Harassment

Employers are legally obligated to take "all reasonable steps" to prevent sexual harassment, extending this responsibility to address harassment from third parties. The bill grants powers to specify what constitutes "reasonable steps" in preventing sexual harassment, and introduces protection for disclosures related to sexual harassment.

Dismissal

The qualifying period for unfair dismissal is removed, strengthening protections for employees. Additional protections are added for dismissal during pregnancy, following statutory family leave, or for refusing to agree to contract variations, unless such variation is necessary due to financial difficulties.

Redundancy Procedures

The requirements for collective redundancy consultations are extended, applying across all establishments of an employer, rather than individual sites.

Public Sector Outsourcing

The bill aims to protect workers during public sector outsourcing by requiring contracts to include provisions ensuring no less favorable treatment for transferring workers.

Equality

Employers (with over 250 employees, excluding most public authorities) are required to develop and publish equality action plans, addressing the gender pay gap and supporting employees going through the menopause, alongside publishing relevant information.

Trade Unions

Employers are required to provide employees with a statement outlining their right to join a trade union. The bill introduces provisions for trade union access to workplaces, outlining agreements and dispute resolution processes. It also alters requirements for trade union political funds and ballots for industrial action.

Enforcement

A new enforcement system is established under the Secretary of State, replacing existing authorities. This includes powers to request undertakings and issue orders for non-compliance, with associated penalties and appeals processes.

Government Spending

The bill will likely increase government spending due to the introduction of new entitlements and the establishment of new bodies such as the School Support Staff Negotiating Body and the Adult Social Care Negotiating Body, and the associated costs of enforcement. Precise figures are not provided in the bill text.

Groups Affected

• Zero-hours contract workers: Will gain increased protection and potentially higher earnings.
• Shift workers: Will have greater protection against short-notice shift changes and cancellations.
• Employees on flexible working arrangements: Will have a strengthened right to request flexible working.
• Employees taking statutory sick leave: Will benefit from the removal of the waiting period.
• Parents and those taking family leave: Will benefit from the reduction or removal of qualifying periods.
• Employees experiencing harassment: Will have strengthened protection against harassment.
• Employers: Will face new obligations and increased administrative burdens. May face financial penalties for non-compliance.
• Trade Unions: Will gain enhanced access to workplaces and potential increased membership.
• Public sector workers involved in outsourcing: Will receive additional protection in transfer situations.

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