The Employment Rights Bill is moving towards Royal Assent and will bring some of the most significant workplace reforms in years.
Given that the Bill seeks to shift power towards workers, it is vital that employers understand their obligations and that HR teams are equipped with the knowledge of how to support employees.
We want to focus on some of the core changes that the Bill aims to introduce and the challenges these might pose for HR teams.
What does the Employment Rights Bill change?
The Bill strengthens worker rights by reducing or removing qualifying periods for key entitlements.
From day one, workers will gain protection against unfair dismissal, the right to request flexible working and access to parental and paternity leave.
The legislation also seeks to end the creation of new zero-hour contracts and enable employees to request conversion of existing zero-hour arrangements into fixed-hour contracts.
Agency workers will be entitled to equal pay after twelve weeks’ continuous service, “fire and rehire” tactics will be outlawed and bereavement leave will be extended to cover pregnancy loss before 24 weeks.
As is apparent, this will require a notable change in how employees are treated, especially if those workers gain additional protections or considerations under the Bill.
How will the Employment Rights Bill affect day-to-day operations?
For businesses with high turnover, seasonal peaks or a heavy reliance on casual labour, the consequences will be more keenly felt.
Guaranteed hours increase payroll obligations and it will be vital to keep on top of the extra administrative requirements.
The removal of qualifying windows means more people qualify for rights sooner, so it is vital that HR teams revisit contracts, onboarding and absence procedures to reflect the new baseline before the Bill becomes law.
Agency arrangements and the use of temporary staff need tighter oversight, as there is increased scope to accidentally fall into noncompliance through mismanaging this.
If a worker accumulates twelve weeks’ service with you, they’ll become entitled to equal pay, so rota design and contract terms require close scrutiny.
The ban on “fire and rehire” removes a lever some employers used to restructure terms, making engagement and negotiated change the only lawful route.
What are the financial and legal risks of getting this wrong?
Non-compliance will carry legal and reputational costs.
Employment tribunal claims, back-dated pay and the administrative burden of correcting contracts and payroll are all financial burdens that businesses should be keen to avoid.
Alongside this, the reputational damage for breaching the new Bill is likely to make recruitment more challenging, as the prospect of working for a company that fails to value workers’ rights is unlikely to appeal to many.
Budgeting for guaranteed hours, statutory pay on leave and any uplift in agency costs is essential to avoid surprise shortfalls.
The Bill rebalances certainty and fairness in the workplace, but it needs to be managed carefully by employers and HR teams to avoid new compliance challenges.
