As we previously informed you, the Employment Rights Bill was published yesterday. Here are the key details of the legislation that we believe could impact your small business:
Day one rights
Workers will now be protected from unfair dismissal starting on their first day of employment, a significant change from the previous requirements of two years service. Additionally, paternity leave and unpaid parental leave will also be available from day one. The bill includes a commitment to conduct a comprehensive review of all parental leave.
Sick Pay
Employees will be entitled to sick pay starting from the first day of illness, rather than from the fourth day as it currently stands. The lower earnings limit is also being removed so it is available to all workers.
Probation
The government plans to consult on introducing a statutory probation period for new hires. Despite this, employees will still retain the right to claim unfair dismissal. According to ministers, this will allow for a more flexible approach to managing dismissals during the probation period.
Zero-hours contracts
Workers on zero hours contracts will have the option to secure guaranteed working hours if they choose. Those on both zero-hours and low-hours contracts will be entitled to a guaranteed hours contract if they have consistently worked regular hours for a specified period. Employees who prefer to stay on zero-hours contracts will still have the right to do so.
Flexible working
The law is set to change, making flexible working the default option where practical. Companies will also be required to develop action plans to address gender pay gaps and support female employees experiencing menopause. Additionally, stronger protections will be implemented to safeguard against dismissal during pregnancy and after returning from maternity leave.
Minimum Wage
The government intends to revise the Low Pay Commission’s responsibilities, requiring it to consider the cost of living when determining the minimum wage. Additionally, all age related wage bands for younger employees will be eliminated, leading to a pay increase for hundreds of thousands of young workers.
The good news is that most of these changes will undergo a two-year consultation and implementation period, so there’s no need to worry just yet. We will keep you updated with more information and provide recommendations on how to adjust your processes before the changes take effect.
