The government has recently published to mixed reviews its intentions to amend the law relating to employment rights. It’s 2nd reading in the House of Commons was scheduled for the 21st October 2024 on its journey to becoming law.
There are currently 28 listed employment reforms within the Bill, with a stated aim to introduce “new workplace rights to end unfair employment practices and help deliver economic growth”. The Government has indicated that it will engage in consultation exercises with various stakeholders, meaning that many of the reforms will not come into effect until 2026.
Some of the reforms grabbing the headlines, are the intended ban of what are perceived as exploitative zero contracts, the end of “fire and rehire” practices and the introduction of basic employment rights from day one of employment, (as opposed to completing a satisfactory period of employment).
If you are an employer or an employee and feel some of the subjects subsequently detailed in this article might impact upon you, our experienced Employment Law team is on hand to support you through any difficulties you are facing. To discuss how we can help, please contact your local Kingsfords office in Ashford, Cranbrook or Hythe.
Zero Hour Contracts
Contradictory research exists around such contracts. Earlier in August 2022 the HR & Professional People Development body – “CIPD” highlighted that zero-hours workers have comparable job satisfaction with other staff. They also reported a better work-life balance with employees saying they are less likely to say their work has a negative impact on their physical or mental health. They also provide employment opportunities for those who require flexible working, rather than regular working hours due to care or study needs, or due to their own health issues.
Conversely a report commissioned by the employee focused TUC, reported in August 2024 that a significant majority of workers on zero-hours contracts prefer stable, regular working hours. The survey stated that 84 percent of zero-hours contract workers would prefer consistent work schedules, whilst only 14 percent were content with their existing arrangements.
The Bill intends to ban such contracts, whereby if you are a ‘qualified worker’, they will be entitled to be offered the opportunity to move to a guaranteed hours contract. This would be calculated by reference to the hours they have worked over a designated 12-week reference period. There is however a degree of balance to the proposal, as there is no obligation for a worker to accept a regular contract of employment, if they prefer to remain on the zero hours contract instead.
Fire and Re-hire to be banned.
The controversial practice of Employers seeking to terminate contracts of employment and subsequently seeking to re-negotiate fresh contract terms, (often to the detriment of employees), is set to be banned.
Each case is different, but will often happen when a company is losing money and wants to cut its overheads to remain in business. Instead of negotiating with the employees, or any involved Union to agree fresh terms, sometimes employers simply dismiss the workers and offer to re-hire them immediately, but under new terms and conditions. Often a power imbalance exists between the employer and employees, who may be desperate to work rather than lose their jobs. They can face an unpleasant choice of accepting the lesser terms, or being out of work.
Whilst not illegal at the time, the ethics of the decision can be considered questionable, as highlighted in notable cases at P & O Ferries and Tesco. The ability to adopt these tactics will be outlawed under the Bill.
Basic rights will apply from day one of employment.
The new Bill will provide greater protection against unfair dismissal from day one, seeking to afford employees additional security in their roles. As a potential check and balance to these protections a fresh statutory probation period for companies’ new hires will come into play. The government intends to consult on the length of the probationary period, (itself favouring a 9 month period – as compared to a private sector norm of either 3 to 6 months). This longer period will allow an employer to properly assess an employee’s suitability for a role, whilst reassuring employees that they have rights from being unfairly dismissed immediately.
The Bill will additionally establish employee’s rights to bereavement and parental leave from the first day, strengthen statutory sick pay and provide stronger protections against dismissal for pregnant women and new mothers. The Bill will also make ‘flexible working’ the new normal, providing certain criteria are met, whilst a new ‘Fair Work Agency’, with fresh powers to enforce holiday pay entitlement will come into play.
Further Legislation
The governments ambitions do not stop there, as they hope to bring forward the ‘Equality (Race & Disability) Bill’. This seeks to tackle perceived inequality, by providing full rights to equal pay for ethnic minorities and disabled people. The bill also seeks to make for mandatory ethnicity and disability pay gap reporting.
Finally, ‘The Worker Protection Act’ should become law on the 26th of October 2024. Under it Employers have a legal obligation to prevent sexual harassment of its workers.
Reactions to the Legislation
It’s fair to say that opinions are divided as to the impact of the legislation depending on what side of the fence you are sitting – employer or employee.
Here are a couple of examples :-
TUC General Secretary, Paul Nowak:
“After 14 years of stagnating living standards, working people desperately need secure jobs they can build a decent life on. The government’s Make Work Pay agenda – delivered in full – can improve working lives for many. Whether it’s tackling the scourge of zero-hours contracts and fire and rehire, improving access to sick pay and parental leave, or clamping down on exploitation – this bill highlights Labour’s commitment to upgrade rights and protections for millions”.
Tina McKenzie, policy chair of the Federation of Small Businesses:
“This legislation is rushed job, clumsy, chaotic and poorly planned – dropping 28 new measures onto small business employers all at once leaves them scrambling to make sense of it all. Beyond warm words, it lacks any real pro-growth element and will increase economic inactivity, seriously jeopardising the government’s own 80% employment target”.
Contact Us
If you are an employer or an employee and wish to discuss any of the issues raised our Employment Law team is on hand to support you. Please contact your local Kingsfords office in Ashford, Cranbrook or Hythe. Alternatively, you can send an enquiry and a member of our team will get back to you promptly, by calling us on 01233 665544 or emailing via tnb@kingsfords.net or dbc@kingsfords.net. We are happy to discuss your concerns without obligation.