Last week, the Government launched four significant consultations on key provisions of the Employment Rights Bill, marking a major step towards comprehensive employment law reform. These consultations, running until early December 2024, cover crucial areas of worker rights and employer obligations. We recognise the importance of these consultations to our client base and we encourage our clients to engage with the process.
We will be reaching out to our client base on the issue of zero hours contracts, especially for agency workers, in particular. We are members of APSCO and we take this very seriously.
We run through the main points of the consultations below:
Zero Hours Contracts and Agency Workers
This consultation addresses the issue of one-sided flexibility in zero hours contracts. Proposals include:
o New rights for workers to receive guaranteed hours contracts reflecting their regular working patterns over a (likely) 12-week period
o Requirements for reasonable notice of shift changes and compensation for last-minute cancellations
o Extension of these protections to agency workers, with ongoing consultation on implementation details
o Considerations including whether employment agencies or end hirers should offer guaranteed hours, potential 'temp-to-perm' fees, and responsibility for shift notices and cancellation payments
The proposals aim to provide more stability for workers and will apply to the approximately 1 million agency workers in the UK but may pose challenges for businesses, particularly smaller employers. Further details of this consultation can be found here.
Collective Redundancy and 'Fire and Rehire' Practices
This consultation seeks input on the Government's plans to enhance collective redundancy protections and restrict 'fire and rehire' practices. Key proposals include:
o expanding collective consultation requirements to cover 20 or more redundancies across an organization, regardless of location;
o increasing penalties for failing to consult collectively, with options to double the maximum protective award from 90- 180 days’ pay or remove its cap entirely;
o limiting the use of 'fire and rehire' practice, proposing to limit its use to situations where an employer faces genuine financial difficulties threatening business viability.
o considering the introduction of interim relief for employees in collective redundancy and 'fire and rehire' cases.
These changes may result in increased costs for employers, particularly larger organizations managing complex redundancy processes across multiple sites. Full details can be found here.
Modernizing Trade Union Legislation
The third consultation aims to update and bolster trade union laws, making it easier for them to take strike action and covering various aspects such as:
o Unions may gain easier recognition and greater workplace access
o The recent Minimum Service Levels legislation is set to be repealed
o Employers will be required to inform new workers of their right to join a union
The government plans further consultations on modernizing trade union law after the Bill receives Royal Assent. Details of the consultation are here.
Strengthening Statutory Sick Pay (SSP)
The final consultation, led by the Department for Work and Pensions, focuses on enhancing statutory sick pay. Key proposals include:
o Making SSP payable from the first day of incapacity (SSP is currently only payable from day 4 of sickness absence)
o Eliminating the lower earnings limit of eligibility (currently £123pw), making all employees eligible for SSP
o Introducing a percentage-based calculation for lower earners instead of the current flat rate to avoid low earners receiving more in SSP than they do in earnings.
The consultation seeks input on the appropriate percentage for this new calculation method, with examples ranging from 60% to 80% of earnings.
The possible implications of this not only include a larger bill for employers, but the possibility of higher levels of short term sickness absence. The consultation closes on 4 December and the details can be found here.
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