More than 200 amendments have been tabled to the government’s flagship employment rights bill, which aims to spur growth, improve workplace security and address low productivity.
But, while unions have praised the revisions to the bill, describing them as a “massive step forward”, many of the concerns of the private sector have been overlooked.
Some of the more contentious changes tabled in the original bill, such as day-one protections for unfair dismissal and a right to guaranteed hours for those on low- and zero-hours contracts, remain.
The package of changes also beefs up workers’ rights in several new areas. These include new duties for employers to protect workers who are victims of domestic abuse, the introduction of bereavement leave for those who suffer an early miscarriage and an expansion of statutory adoption pay to the self-employed and contractors.
Agency workers are also set to be covered under the ban on zero-hours contracts and caring will be added to the current list of protected characteristics under the Equalities Act.
Additionally, if passed, the bill would establish a Working Time Council, which would make recommendations to the business secretary on how the UK could transition to a four-day working week, with no loss of pay for employees.
Which amendments should employers be aware of?
The amendment closes a loophole that would have allowed agency workers to continue to be hired on zero-hours contracts.
The change means that up to 900,000 agency workers will also have a right to receive reasonable notice of shifts, compensation if shifts are cancelled and a contract with guaranteed hours.
The right to statutory sick pay will be extended to workers earning less than £123 a week from the first day of illness.
This group of 1.3 million employees will be eligible to either 80% or the £116.75 of statutory sick pay when they’re off work sick – whichever is lower.
The initial employment rights bill already sought to ban the use of so-called fire-and-rehire tactics by employers.
Under the amendments, the penalty that businesses could face for breaching these rules has been doubled to 180 days’ worth of pay in compensation to workers involved in collective redundancies.
Parents will be entitled to two weeks of bereavement leave which is being made a universal right. Under current rules, parents are only entitled to bereavement leave if the miscarriage happens after a 24-week gestation period.
Kinship carers, friends or relatives who step in to take care of a child during an unexpected crisis will be entitled to care leave.
Other changes will enhance protections for trade union representatives and prevent employers from “flooding” departments with temporary workers in order to influence the recognition ballot process.
A thicket of regulation
While the Chartered Institute for Personnel and Development (CIPD) has welcomed the revisions, its head of public policy, Ben Willmott, says: “The sheer number of amendments to this legislation published by the government underlines the size and complexity of this bill for employers.”
He adds the government must continue consulting with employers and business groups to ensure these new measures are workable and requested a phased timeline for any changes and support and guidance for employers.
The sheer number of amendments underlines the size and complexity of this bill for employers
There are fears that the lengthy list of amendments and new duties that the bill will place on businesses could make employment more challenging and hinder growth. Rain Newton-Smith, the CEO of the Confederation of British Industry says: “There is a real risk that this legislation imposes a thicket of regulation across all businesses which prevents them from creating the high-quality, secure jobs which we all want to achieve.”
Neil Carberry, chief executive at The Recruitment and Employment Confederation, also raised concerns that some clauses in the bill could “further raise the costs for employers when taking a chance on people” and mire businesses in “overly complex bureaucracy”.
The HR profession will largely be responsible for ensuring organisations comply with these changes. CHROs will need to familiarise themselves with these amendments and the 28 other workers’ rights reforms that were outlined in the original bill, if it passes into law.
The employment rights bill will have its third reading in the House of Commons next week.
More than 200 amendments have been tabled to the government’s flagship employment rights bill, which aims to spur growth, improve workplace security and address low productivity.
But, while unions have praised the revisions to the bill, describing them as a “massive step forward”, many of the concerns of the private sector have been overlooked.
Some of the more contentious changes tabled in the original bill, such as day-one protections for unfair dismissal and a right to guaranteed hours for those on low- and zero-hours contracts, remain.
