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Understanding the Employment Rights Bill

The Employment Rights Bill and widening of associated employment rights marks one of the biggest changes to employment law and workers’ rights for a generation.

Policies include day one employment rights, abolishing fire and rehire, improving maternity rights, tightening zero-hours contracts and modernising trade union laws.

The plans also include the removal of the two-year unfair dismissal qualifying period.

This is one of the biggest changes we have seen to employment law for many years and, combined with the other proposals introduced, will represent a shift for some employers and is likely to see a rise in claims for unfair dismissal in the employment tribunal.

A significant emphasis will now be placed on the new nine-month probationary period (previously expected to be six months), as the new legislation still allows employers to end employment during this time with only a limited process required. 

Even accounting for probationary periods, this will be a significant change for employers, as it is currently relatively easy to dismiss an employee within their first two years of employment. 

The slightly extended probation period will give employers a bit more flexibility, but many will need to monitor new recruits much more closely and perhaps be more rigorous in their hiring procedures. 

However, one potential benefit of employees getting full employment rights much earlier is the likelihood they become more willing to move jobs, in turn making recruitment easier.

Other key changes include significant tightening on the use of zero-hour contracts, including giving workers a right to guaranteed hours. 

Under the new legislation, employers will be required to offer zero-hours workers a guaranteed hours contract based on the hours they work during a 12-week period.

Maternity rights will also be extended, prohibiting the dismissal for up to six months after the return from maternity leave and during maternity leave other than in very limited circumstances.

Provision for sick pay will also change, with the removal of the lower earnings limit for statutory sick pay, along with the current three-day waiting period.

The Government’s removal of the lower earnings limit, but particularly the three-day waiting period for statutory sick pay, will add cost for employers and could lead to an increase in short-term absences.

This will require a closer level of management and scrutiny.

Tom Clarke is an employment law associate at Hay & Kilner

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