Major employment law changes coming

The full text of the employment rights bill, with explanatory notes and a human rights memorandum, has today (10 October) been published on the parliamentary website.

Prior to entering Government, Labour pledged to introduce radical reforms to employment rights, as part of a “new deal for working people”. Some of the changes under discussion then feature in the Bill published today. Key changes are noted below, but business owners do not need to panic - it is expected not to come into law for around two years.

• Unfair dismissal – this will become a “day one” right, and the two year qualifying period of service will be swept away.

• Statutory sick pay – whereas previously an employee would need to wait until the fourth day of sickness to receive the payment, now it will be available from day one.

• Statutory probation period – this will be consulted on for new hires. The length of the period is likely to be nine months.

• Zero hours contracts – workers on these contracts will obtain the right to request guaranteed hours if they would like them.

• Flexible working – one outcome of the Bill, if enacted, is that it will become harder for employers to disagree with a “reasonable” flexible working request.

• Enforcement body – a number of pre-existing enforcement bodies, such as the gangmasters authority, will be subsumed into a new “Fair Work Agency”. The exact remit of the new agency will be decided during consultation.

Luke Hutchings, Partner at Taylor Rose, commented “whilst some of these changes are significant – such as making unfair dismissal a “day one” right – there will now be a lengthy consultation period involving all stakeholders such as the Federation of Small Businesses. Employers are recommended to check back regularly so the final provisions of the Bill are not too much of a surprise.”

Luke is a Partner in the Employment Team at Taylor Rose and can be contacted on 01733 865636