The UK’s new Employment Rights Bill has passed its third reading and is set to receive Royal Ascent soon, though no exact deadline has been provided. What this means for businesses across the UK is that they’ll need to start preparing to meet the new requirements outlined in the bill as soon as possible.
Yes, the bill isn’t in law yet, but it’s passed enough revisions and adjustments that the overall structure and contents of the Bill are more or less set, with only the finer details left to be debated and agreed.
First, Know That the Laws Will be Staggered
The first thing you need to know about the Employment Rights Bill is that it won’t come into effect all at once, just as the new Renters’ Rights Act will be staggered. This means that you only need to prepare and change a few select areas of your company policy at a time, allowing you to adapt and adjust with plenty of time and breathing room to spare.
That said, it’s important that you start to familiarize yourself with the changes in the Employment Rights Bill today, so that updating company policy, handbooks, and even your employment contracts will be that much easier.
You don’t necessarily need to do it all in-house, either. If you need extra support to update all your employment documents and contracts, you can outsource to employment specialists like The HR Dept. You can hire an entire team of specialists at the forefront of employment law for as long as you need to. This could be in short bursts to help you stay compliant up to the next deadline, or it could be continuous over the next two years, to ensure that every element of your company is aligned with the new bill.
What’s Included in the Employment Rights Bill?
The Employment Rights Bill covers many different types of workers, workers’ rights, and changes. Here’s a quick rundown of the biggest changes:
1. Unions
Unions will be easier to form, and industrial action will require fewer hoops to jump through. This means that unions will have greater protections and the ability to strike or demand alternative working conditions as a collective.
2. Parents
Parental leave will also change, with new parents being able to take leave from day one in a new job. Paternal leave may also change, with the removal of the restriction of being unable to take paternal leave after parental leave. Women in particular will also have additional protections to prevent unfair dismissal either during pregnancy, or when returning to work after maternity leave.
3. Sick Leave
All workers will be eligible for statutory sick pay from day one, as the earnings limit is set to be removed. It’s estimated to benefit firms by up to £2 billion per year, making it a positive change for businesses and employees alike.
4. Redundancy and Fires
Workers will be better protected against certain kinds of redundancies (fire and rehire), as well as unfair dismissal due to harassment and whistleblowing. This includes longer tribunal time limits. In general, if you need to dismiss someone or make a role redundant, consult with a legal or HR expert in advance to ensure that you use the proper procedures and steps.
How Will This Bill Impact Your Business?
The fact is that the changes outlined in the Employment Rights Bill may mean very minimal change to your operations. If your employees have never even considered unionizing, for example, then a significant proportion of the new reforms won’t apply. That said, there are a few new reforms, such as changes to statutory sick pay and parental leave, that you’ll need to note and include in your company policy, budgeting, and employment contracts.
The other big sweeping change is that unfair dismissal has been expanded, meaning more workers are protected under those rules. What this means for you is that if you want to dismiss an employee, it’s essential to run it through your legal experts to make sure you’re not going to be violating the new Employment Rights Bill to do it.
Positive Outcomes for Employers
While the Employment Rights Bill is largely there to protect employers, it also has a few knock-on effects that will improve the job market and businesses as a whole. These new rights are set to better protect workers against harassment, give them new protections as young families, and more. In turn, these protections can and will help improve the mental health and even morale of workers across the country, two standards which drastically improve productivity and even company loyalty.
Regardless, being prepared is the name of the game. Have your HR team read through the Bill or rely on outsourced experts, and start preparing your business today.
