Employment Rights Bill

The Employment Rights Bill was announced on 24 October 2024, heralding proposed new legislation under the Labour government. Whilst the proposals have been ‘fleshed out’ to some degree, they are still subject to consultation, therefore nothing is going to change soon. Employers do, however, need to be aware of these new provisions.

Key themes of the Bill include:

• Day one employment rights – protection against unfair dismissal from an employee’s first day of employment, as well as eligibility for parental, paternity and bereavement leave.
• Statutory Sick Pay (SSP) and Bereavement Leave – SSP will become available from the first day of illness, and bereavement leave is to be extended to close relationships.
• Zero-Hour contracts – employees will gain rights to guaranteed working hours after a qualifying period, and benefit from protection against last-minute shift changes and cancellation without pay.
• Diversity and Inclusion – a requirement for larger organisations to publish annual equality action plans to address gender pay gaps will be introduced, as will workplace menopause support.
• Sexual Harassment protection – employers will be mandated to take all reasonable steps to prevent sexual harassment, with enhanced whistleblowing protections.
• Collective Rights – strong consultation requirements will be introduced in cases of redundancy and other workforce changes.

Employers should be aware of the financial implications of the Bill, namely:

• The cost of redrafting contracts of employment
• The cost of redrafting relevant policies and procedures
• Additional costs associated with creating and publishing annual equality action plans
• Potential costs related to training staff on Sexual Harassment
• Potential costs of time off for those employees involved in Trade Union activities

One of the key themes of the Bill is addressing workplace discrimination and promoting equity. As such, the Government also plan to introduce an associated Equality (Race and Disability) Bill to strengthen anti-discrimination measures, ensuring fair treatment across diverse workforces. Set out below are key highlights of this Bill and action points for all employers, as recently reported by Not for Profit sector media outlet Civil Society.

Key Highlights:

1. Proactive Anti-Harassment DutiesEmployers will have a legal obligation to take preventive steps against workplace harassment, fostering safer work environments. This includes creating robust policies and conducting regular staff training.
2. Enhanced Redundancy ProtectionsEmployees returning from maternity leave or shared parental leave may receive additional safeguards against redundancy. Charities planning structural changes or cost-cutting must factor these protections into their workforce management strategies.
3. Broad Sector ImpactsWhile the proposed measures apply universally, their implementation will vary based on the size, sector, and resources of the employer. Charities should tailor their responses accordingly to remain compliant.

Action Points:

1. Train staff and managers to recognise and mitigate harassment and discrimination.
2. Ensure redundancy plans reflect the updated protections, particularly for returning parents.
3. Engage with legal advisors to stay informed as the legislation progresses.