As part of the UK Government's efforts to boost living standards and following weeks of consultation with business groups and trade unions, the Government has announced a series of proposed changes that the Employment Rights Bill (the Bill) plans to implement.
Here is a brief overview of the measures:
- Employees will receive new "Day One" rights including being entitled to:
- statutory sick pay (at present, this only applies from the third day of sickness absence);
- unfair dismissal protection (removing the two-year qualifying employment requirement);
- parental leave (removing the 26-week continuous service requirement); and
- paternity leave entitlement (removing the one-year continuous service requirement).
- Increasing the maximum period of the protective award for collective redundancy from 90 days to 180 days. Tribunals will be able to grant larger awards to employees for an employer's failure to meet consultation requirements. Further guidance will be issued on this.
- Abolishing the Lower Earnings Limit of £123 weekly to ensure that all employees, irrespective of pay, have access to statutory sick pay (SSP). People on wages below £123 weekly will receive either 80 percent of their average weekly earnings or statutory sick pay (currently £116.75), whichever is the lowest.
- A requirement for employers to take all reasonable steps to prevent sexual harassment and sexual harassment-related disclosures will constitute "protected disclosures."
- Flexible working is set to become the "default" for all workers from their first day, with employers only able to refuse a flexible working request if it is "unreasonable" based on lawful grounds (listed in the Bill).
- It will be unlawful to dismiss pregnant mothers during their pregnancy and maternity leave (subject to exceptions which are yet to be clarified).
- Bereavement leave will be available for those who suffer a pregnancy loss before 24 weeks.
- A Modern Framework for Industrial Relations will be created to align trade unions operations with modern work practices.
- Time limits for bringing claims in the employment tribunals will be extended from three to six months following the date of the act(s) complained of.
- Dismissing an employee who does not agree to a contract variation, enabling an organisation to employ another person or re-engaging the same employee under a varied contract to carry out substantially the same duties will be considered unfair dismissal unless the employer can show it could not have reasonably avoided making the variation.
- The definition of workers will now include agency workers, who should be able to access a contract reflecting the hours they regularly work. The zero-hour contract ban will also extend to include agency workers.
- Those working for umbrella companies will be given comparable rights and protections as they would have if they were working for a recruitment agency. Enforcement action can be taken against umbrella companies if they do not comply.
The Government will no longer include a "right to switch off" outside of working hours in the Bill, which would have prevented employers from contacting staff out-of-hours. However, there have been suggestions that this right may be included in an accompanying code in due course.
The Bill is set to be heard before Parliament over the next few weeks, during which further amendments may be made. It is expected to be introduced next autumn.
Maya Sterrie, a trainee in the Employment Litigation and Counseling practice, contributed to this advisory.
London
