Businesses of all sizes are preparing for the upcoming Employment Rights Bill, which is due to become law later this year.
The Bill will provide clarity on a vast range of employment rights and ensure that both you as the employer, and your employees understand your positions and can implement changes where necessary.
The new Bill intends to make extensive changes to employment law regarding unfair dismissal, flexible working, zero-hour contracts and family leave among others.
It is important you understand the new regulations coming into place, as this is likely to bring widespread changes to contracts, perks, and benefits, so it’s crucial you understand and plan ahead.
What is the Employment Rights Bill?
The Employment Rights Bill is currently in its final reading stages in the House of Lords and is expected to pass and become law later this year. The Bill will introduce several reforms that will enhance the rights of workers.
The new legislation, as well as enhancing the rights of workers, will clarify the role of employers and modernise employment practices to fit the current society we live in.
Having first been announced in October 2024, the Employment Rights Bill will be the first major legislation implemented as part of the Government’s Plan to Make Work Pay initiative.
What does this mean for my business?
The new Bill will bring in a host of changes and updates that you need to be aware of, as you will need to put contingency plans in place.
The Bill is expected to provide clarity on important aspects of employee rights such as flexible working, gender pay gaps, paternity and parental leave, as well as contract hours and notice of shift changes.
Under the new Bill, employers with 250 employees or more will be required to develop and publish equality action plans showing steps they are taking in relation to gender equality, such as addressing the gender pay gap.
The existing day-one right to request flexible working will remain except where it is “not reasonably feasible”, but employers will only be able to rely on one of the statutory reasons to refuse a request for flexible working where it is reasonable to do so. This will therefore make it more difficult for an employer to refuse a request for flexible working.
There is currently limited protection for workers on zero-hour contracts and the Government has said it is committed to ending this one-sided flexibility.
The new Bill intends to ensure that workers have a right to a contract that reflects the number of hours they regularly work as well as be provided with reasonable notice or compensation if their shifts are changed, cancelled or curtailed.
The Bill will also remove qualifying periods for paternity and parental leave. This means employees will be entitled to this from the moment they first join a company.
Whatever industry your business operates in, it is important to be aware of all the new regulations within the Bill and begin the process of implementing those into your business to ensure compliance.
It is essential to ensure that your business follows all regulations and you will need to make changes to your business to fit the new laws.
Updating employee contracts and informing them of the changes will be your top priority, and it is worth ensuring your business is financially sound to manage the changes, given the potential rise in employment costs.
How can I prepare for the upcoming changes?
Given that the Employment Rights Bill will become law very soon, it is important that your business plans ahead of time and factors in those changes when budgeting.
Speak to legal experts who can explain the Employment Rights Bill, what it means for your business, and how you can plan effectively for the changes to come.
Prepare your business ahead of the Employment Rights Bill. Contact us for expert advice and support
