Overview

The Employment Rights Bill aims to improve employment rights for workers in the UK, particularly those on zero-hours contracts, and enhance enforcement of labour market legislation. Key changes include introducing a right to guaranteed hours for eligible workers, strengthening protections against unfair dismissal, and reforming the system for handling redundancies.

Description

Zero-Hours Contracts and Shift Work:

The bill introduces a right for qualifying workers on zero-hours contracts (and similar arrangements) to be offered guaranteed hours based on their average working hours over a reference period. It also grants workers the right to reasonable notice of shifts and payment for cancelled, moved, or curtailed shifts at short notice.

Flexible Working:

The bill strengthens the right to request flexible working, limiting the grounds on which employers can refuse such requests and requiring them to provide reasons for refusal.

Statutory Sick Pay:

The bill removes the waiting period for Statutory Sick Pay (SSP) in Great Britain and Northern Ireland and increases the SSP rate.

Tips and Gratuities:

Employers must now consult with workers or their representatives before creating a written policy on allocating tips and gratuities, and are required to review this policy regularly.

Parental and Bereavement Leave:

The bill removes the qualifying period of employment for parental and paternity leave, and simplifies the rules around taking paternity leave after shared parental leave. It also broadens bereavement leave beyond parental bereavement.

Protection from Harassment:

The bill strengthens employer responsibilities to prevent sexual harassment in the workplace by requiring them to take "all reasonable steps." It also introduces a new provision to prevent harassment by third parties.

Unfair Dismissal:

The bill removes the qualifying period for unfair dismissal claims. It also strengthens protections against dismissal during or after pregnancy or statutory family leave, and introduces protections against dismissal for refusing to agree to contract variations unless there are specific financial reasons.

Redundancies:

The bill extends the requirements for collective redundancy consultation to a broader range of situations, including those involving 20 or more employees at one establishment or those involving fewer employees where the overall numbers meet a specified threshold.

Public Sector Outsourcing:

The bill introduces new provisions to protect workers' rights during public sector outsourcing, requiring contracting authorities to take reasonable steps to ensure that transferring workers are treated no less favorably than they were before the outsourcing.

Equality Action Plans:

Larger employers will be required to develop and publish equality action plans focusing on gender equality issues.

Employment Businesses:

The bill broadens the definition of "employment business" in the Employment Agencies Act 1973 to increase regulatory oversight.

Trade Unions and Industrial Action:

The bill introduces a right for employers to provide a statement of trade union rights to workers. The bill also introduces a right of access to workplaces for trade unions, modifies requirements for industrial action ballots, and repeals provisions on minimum service levels during strikes. Changes are also made to trade union finances.

Enforcement of Labour Market Legislation:

The bill creates a new system for enforcing labour market legislation, consolidating enforcement powers under the Secretary of State and creating a new Advisory Board. New powers are introduced to obtain information and documents, and penalties for underpayment are introduced.

Government Spending

The bill is expected to increase government spending due to the costs of enforcing new regulations and providing legal assistance to workers. Specific figures are not provided in the bill text.

Groups Affected

• Zero-hours contract workers: Gain right to guaranteed hours, reasonable notice of shifts, and payment for cancelled/changed shifts.
• Agency workers: Gain similar rights to zero-hours contract workers.
• Employees generally: Enhanced protections against unfair dismissal, strengthened right to request flexible working, removal of SSP waiting period, improved bereavement leave entitlements.
• Employers: Increased administrative burdens, potential increased costs associated with compliance with new regulations and leave entitlements, and potential financial penalties.
• Trade unions: Enhanced ability to access workplaces, changes to industrial action ballot requirements.
• School support staff in England: Establishment of a new negotiating body to address pay and conditions.
• Social care workers: Establishment of negotiating bodies to address pay and conditions.
• Seafarers: Amendments to the Seafarers' Wages Act 2023 and implementation of international agreements.

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