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The Employment Rights Bill (ERB) was published in October 2024 and introduced nearly 30 employee-friendly reforms. Since then, there have been various amendments to the ERB, and the government has responded to a number of its initial consultations.
Below we look at some of the topics subject to amendments and explore how the ERB will change the employment law landscape over the next two to three years.
- SSP – the original ERB proposed removing the four-day waiting period so that SSP became payable from day one of sickness absence. Amendments to the ERB will give employees earning below the lower earnings limit a right to SSP at 80% of their average weekly earnings. This means all employees – regardless of earning levels – will be entitled to some form of SSP from the first day of sickness.
- Collective consultation – the original ERB proposed removing the wording ‘at one establishment’ from collective consultation obligations (which would have meant that any proposed redundancies involving 20 or more employees across any number of sites in the UK would have triggered the requirement to collectively consult). The good news for employers is the government has confirmed it will not introduce this change; however, it will seek to introduce an additional business-wide threshold to cover redundancies across multiple establishments (full details TBC). The ERB will also introduce changes in relation to consultation requirements with employee representatives and increase the maximum protective award from 90 to 180 days, for failure to collectively consult. For a more detailed look at the changes to collective consultation, see our recent article here.
- Zero hours – The amendments to the ERB make provision for the rights relating to zero hours workers (including the right to guaranteed hours and reasonable notice of shift changes/cancellations) to be extended to agency workers. The ERB amendments also introduce the ability for workers (including agency workers) to contract out of the new rights by virtue of a collective agreement.
- Fair Work Agency (FWA) – In its recent amendments to the ERB, the government proposes extending the FWA’s powers to include (amongst others), allowing the FWA to bring Employment Tribunal proceedings on behalf of workers who do not pursue a claim themselves and providing workers with legal assistance in employment proceedings, with the legal costs potentially recoverable from employers in the event of a costs award. This will mean employers will no longer be able to rely on employee reticence to bring a claim and a more proactive approach to compliance is likely to be needed to avoid enforcement action and fines. For a more detailed look at how the introduction of the FWA may change the regulatory and enforcement landscape for employers, see our recent article here.
- Various other changes – the amendments also cover other topics, including introducing a requirement for employers to keep records for six years to evidence compliance with paid holiday entitlements under WTR 1998; various amendments to trade union legislation (see our article here for further details); enhancing the regulation of umbrella companies; and potentially introducing miscarriage bereavement leave.
The ERB is now in the House of Lords and further amendments may be made. Notwithstanding future amendments, the ERB (and accompanying regulations) will bring about significant changes for employers. Some of the ERB’s provisions will represent a complete shift in current practices and employers should consider taking preparatory steps to ensure they are ready for when the changes come into effect.
If you’d like to discuss how our Employment team can support your business in preparing for the ERB coming into force, please contact Robert Forsyth.
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