.png)
A number of amendments to the Employment Rights Bill (the Bill) are to be considered at the report stage in the House of Commons. Four consultations were launched in October 2024 in relation to the following:
strengthening statutory sick pay;
collective redundancy and fire and rehire;
creating a modern framework for industrial relations; and
the application of zero hours contracts measures to agency workers.
The Government has now published its response to these consultations, as well as a response to a consultation undertaken by the previous Government about tackling non-compliance in the umbrella company market. A summary of the response is outlined below.
Strengthening statutory sick pay (SSP)
Currently, employees who earn below the Lower Earnings Limit (LEL) are not eligible to receive SSP. The LEL is currently £123 per week but is increasing to £125 per week in April 2025. The Bill proposes to remove this eligibility requirement and allow low earners to receive 80% of their average weekly earnings, or the current SSP rate, whichever is lower.
Collective redundancy and fire and rehire
Where an employer has failed to adhere to collective redundancy requirements, affected employees can bring a claim for a protective award. The Bill is proposing to double the maximum period of this award from 90 days to 180 days.
The Government has confirmed that it is not going to make interim relief available to employees who bring claims for protective awards, or who bring a claim for unfair dismissal in relation to ‘fire and rehire’.
Creating a modern framework for industrial relations
The Bill proposes to make a number of amendments to the legislative framework governing trade unions and industrial relations, including:
streamlining the recognition process and strengthening protections against unfair practices
allowing digital access for collective bargaining purposes
abolishing the 10-year requirement for unions to ballot their members on the maintenance of a political fund
simplifying the information requirements for ballots and notices
extending the expiry of a mandate for industrial action from 6 to 12 months.
Applying zero hours contract measures to agency workers
The Bill proposes to introduce a right to guaranteed hours reflective of the hours worked during a reference period (which is anticipated to be 12 weeks). The consultation sought views on how to apply such measures to agency workers. The Bill proposes that this obligation will lie with the end user of the worker’s services, though legislation will maintain flexibility by permitting this obligation to be placed on agencies or other entities in certain scenarios.
The end user and agency will both be responsible for issuing the worker with reasonable notice of shifts, shift cancellations and changes to shifts. The responsibility to pay any short-notice cancellation or curtailment payments will lie with the agency, however, agencies will remain free to negotiate terms to allow such costs to be recouped from the hirer where they were responsible for the change.
Tackling non-compliance in the umbrella company market
No action was taken in relation to the previous Government’s consultation on this matter. However, the current Government has responded to this consultation and the Bill proposes to allow umbrella companies to be regulated for the purposes of employment rights.
If you would like any further information on this article or would like to discuss your employment law and HR matters, please don’t hesitate to contact at hello@alphr.uk and we will be delighted to help you.
Comentarios