EMPLOYMENT RIGHTS BILL: Committee Stage Amendments and Next Steps
Employment Rights Bill: Committee Stage Amendments and Next Steps
The Employment Rights Bill has reached an important milestone at the committee stage in the House of Commons, with key amendments reshaping its provisions. This article reviews the most significant updates, outlines the legislative process, and provides insight into when the Bill might become law.
Key Amendments from the Committee Stage
1. Extension of Tribunal Time Limits
One of the major amendments extends the time limit for bringing unfair dismissal and related employment claims from three months to six months. This significant amendment addresses long-standing concerns about the challenges employees face in preparing claims within the existing tight timeframe, but it is notable it wasn’t included in the original bill as it warrants big headlines!
Impact: Employers should prepare for an increase in claims and ensure robust grievance and dispute resolution processes are in place to mitigate risks.
2. Zero-Hours Contracts and Predictable Hours
The Bill introduces a right for workers on zero-hours contracts to request predictable hours after a qualifying period, with workers being compensated when shifts are cancelled. The amendment gives Tribunals greater flexibility to impose punishments for cancelled shift, looking at the seriousness of the impact on the worker.
Impact: This amendment balances worker security with employer flexibility but will still mean the risk of compensation will need to be accounted for.
3.Unfair dismissal and day one rights
The bill reduces the service necessary for an employee to claim unfair dismissal from two years to day one. However, this will be subject to a probationary period – which wasn’t expanded on. The amendment includes a proposition that this “initial period of employment” must be between three and nine months from the day on which the employee starts work, with the actual period still to be set out in regulations made under the Bill.
Impact: The reduction in service requirements is likely to see an increase in unfair dismissal claims. However, clarity on the “initial period of employment” may give employers assurance they can take swift action when wishing to terminate, and the opportunity to build effective probationary systems.
4.Gender protections
One amendment expands the details of protection afforded by gender, by adding "menstrual problems and menstrual disorders" as factors considered for "matters related to gender equality". Further, whilst not mentioned in the amendment, it is expected equality action plans will form part of the normal cause of business in the future, with menopause and other menstrual related issues featuring.
Impact: Employers will know menopause awareness in the workplace is a growing topic and employers are doing more to become “menopause friendly”. This is further clarity and protection for those suffering menstrual issues at work and employers should reflect on policies and training as they do with other protections.
Readers will recall some of the headlines from the original bill have already raised questions and concerns from business leaders, including:
1.Strengthening Collective Consultation Requirements
The amendments clarify redundancy consultation requirements, mandating that redundancies acrossmultiple sites be aggregated when calculating the 20 redundancies threshold. This closes a loophole that allowed employers to avoid collective consultation by separating redundancies across locations.
2.Flexible Working
The amendments ensure that employers must provide a clear rationale for refusing flexible working requests. While the eight business justifications remain unchanged, the reasonableness of refusals will now be more open to challenge.
3.Fire-and-Rehire Protections
Employers will face stricter limits on dismissing employees to impose contractual changes. The Bill makes such dismissals automatically unfair unless the employer is in defined financial distress, with criteria to be determined in forthcoming regulations.
Legislative Process and Next Steps
Legislation in England follows a structured pathway:
First Reading: Introduction of the Bill without debate.
Second Reading: Debate on the Bill's general principles.
Committee Stage: Line-by-line scrutiny and amendments by a committee.
Report Stage: Further opportunity for MPs to amend the Bill.
Third Reading: Final debate in the House of Commons.
House of Lords: The Bill goes through a similar process in the Lords.
Royal Assent: The Bill becomes law once approved by the monarch.
Having completed the committee stage, the Bill now proceeds to the report stage, expected in the coming weeks. If progress continues as planned, the Bill may pass through both Houses by mid-2025, with implementation following thereafter.
Broader Implications and Stakeholder Perspectives
For Employers:
Employers must adapt policies and practices to align with the new requirements, from extending tribunal claim windows to managing flexible working requests. These changes may increase administrative workloads and legal risks, particularly for multi-site operations.
For Employees:
Workers gain enhanced protections, greater job security, and more predictable working conditions. The extended timeframe for tribunal claims is especially welcomed by worker advocacy groups.
For Unions and Advocacy Groups:
Trade unions view these changes as steps toward levelling the playing field, though some criticize the lack of outright bans on practices like zero-hours contracts.
Government Outlook:
The amendments demonstrate a balancing act, aiming to enhance fairness while maintaining business flexibility.
Conclusion
The Employment Rights Bill represents a substantial reform of UK employment law, and its committee stage amendments reinforce the government’s commitment to modernising workplace rights. Employers should act now to prepare for these changes, ensuring compliance and mitigating risks.
For a deeper dive into the Bill, explore our articles on trade union rights, collective consultation obligations, and zero-hours contracts. Stay tuned for further updates as the Bill progresses through Parliament.