The Employment Rights Bill: A Summary of the Proposed Changes

The long-awaited Employment Rights Bill was finally revealed at around 11am on 10^th October 2024. As expected, the Bill introduces the most sweeping changes to employment law for more than a generation.

Unfair Dismissal

From day one, employees will have the right to present a claim for unfair dismissal. Under the law as it presently stands, the tribunal lacks jurisdiction to hear a claim for unfair dismissal for anyone with less than two years’ continuous service. However, under the proposed changes, employees will be subject to a nine-month probation period, during which the employment contract can be ended following a ‘proportionate assessment of an employee’s suitability to a role’. The probation period, and the basis upon which an employment contract can be terminated during that period, will be the subject of further consultation by the Government.

Flexible Working

Flexible working becomes a right by default, but only where ‘reasonable’. Employers will be expected to grant requests for flexible working unless it would be unreasonable to expect them to do so. The grounds for refusal are the same as in the existing legislation (cost, detrimental effect to customer demand, inability to reorganise work, impact on quality or performance, etc). Under the new rules the employer will have to state the grounds for refusal and why it is reasonable to refuse the application

Sick Pay

The waiting period and lower earnings limit to receive SSP will be removed.

Unpaid Parental and Bereavement Leave

Unpaid parental and bereavement leave will become a ‘day one’ right from the commencement of employment.

Zero-Hours Contracts

Businesses will be required to offer a zero-hours worker a guaranteed-hours contract based after every reference period. The ‘reference period’ and how to identify the hours within that reference period will be defined by regulations.

However, employees that prefer operating under a zero-hours contract (e.g. students) will be able to retain their contracts should they wish. Workers that remain on zero-hours contracts will be entitled to ‘reasonable notice’ of any changes made to their shifts, as well as compensation if a shift is cancelled or finishes early.