Just 24 hours after the Employment Rights Bill 2024 was published, here’s our expert advice for SMEs and HR professionals.
First of all, even though the scale of the employment reforms are, in our opinion, the largest we have seen in decades, it is a huge relief that the majority of reforms are coming into force no earlier than 2026. And I’m sure, many HR teams are also thinking the same right now!
Breaking this down, this delay will take some pressure off for the time being, as we observe the Bill being debated and amended during its parliamentary stages, alongside consultations on how it will operate in practice. So, don’t panic! You’ll be able to keep up to date with the progression of the Bill through our socials, website, and newsletter.
The fact that the majority of the reforms won’t be coming into force until 2026 gives SMEs and HR professionals a window to prepare. You’ll have ample time to understand the changes, assess how they will impact your business, and put the necessary processes in place for compliance. If you’re one of our clients, your HR Consultant will guide you over the coming months, ensuring your business is ready.
Another area of relief is in respect of the day 1 right to claim unfair dismissal. Since the King’s Speech in July, we’ve known the government intends to scrap the current 2-year service requirement, and many have been wondering how this will affect probation periods. It’s welcomed news that this change won’t take effect until Autumn 2026, which makes sense given the significant nature of this change. It allows employers and HR professionals the time to assess existing working practices and make adjustments to processes such as probation, onboarding, disciplinary, performance management to name just a few. We will also see the introduction of a new statutory probation period, which will hopefully help to provide clarity on managing fair dismissals for those who are new in their employment.
In the Government’s ‘Next Steps’ publication that accompanies the new Bill, it mentions “a number of immediate changes.” While it’s unclear what “immediate” means in this context, we typically see new legislation come into force in either April or October. Could this be the next opportune moment?
Clause 23 lists several key reforms, including making flexible working the default, establishing a new right to bereavement leave, granting day one rights for paternity and parental leave, and strengthening protections for pregnant women and new mothers returning to work. These are significant changes—will we see new bereavement leave for all employees or improved paternity rights in the near future?
However, Clause 24 emphasizes the need for consultations and partnerships with businesses, trade unions, and third-sector bodies to modify flexible working legislation, raising questions about how “immediate” these changes will actually be. There’s still a lot to consider, and we’ll keep you updated as more details unfold in the coming days and weeks.
For our clients, the changes to zero hour contracts and SSP will be significant. These changes will likely bring administrative and budget implications. Consultations are needed to bring about these changes, so we will see what the outcome is from these to assess the extent of the impact.
Developments in the area of equality is always welcomed. Many groups in society remain either unrepresented, in low wage employment, or do not have the same opportunities for career progression. With the introduction of pay gap reporting in the areas of ethnicity and disabilities, and strengthening the law around equal pay, these measures will go a long way towards bridging this gap, which is always so important.
Industrial relations have been a key area of employment in recent years, as we have seen increasing levels of industrial action, including strike action, requests for union recognition etc. It is an area of law that hasn’t been reviewed in sometime so if there can be measures introduced to simplify this area, they too would be welcome. With changes on the horizon in this area, such as requiring the employment contract to inform workers of their right to join a trade union, it is likely we will see more people becoming aware of their employment rights…..but this is what the Bill is for, so surely this can only be right.
So what are we doing to support our clients and SMEs? Well, given that there are 28 individual reforms that have been set out in the new Employment Rights Bill and it being the biggest change in employment rights for many years, we have a clear plan of support over the next couple of years:
- We are monitoring the progression of the Bill and will continue to provide regular updates as they arise. You can follow us on all socials and sign up to our newsletter to ensure you keep informed
- When new consultations are published, we will let you know how you can have your say in the formation of new legislation by participating in the consultation periods
- We will cover the Bill in our monthly free webinars, taking a topic at a time. You can see our latest set of webinars on our events page on our website. A new programme will be published in the coming week.
- Develop training programmes to support the roll out of the new legislation
- If you are a client, we’ll continue to update you through your dedicated consultant
- If you’re not a client, we offer a free HR advice line where you can have a free 30-minute consultation with one of our expert HR advisors. Even if you don’t have questions about the new Bill, our team can guide you through performance issues, absences, workplace culture and more.
FREE HR ADVICE LINE
If you have any questions about the upcoming changes, we offer a free 30-minute advice session with one of our expert HR advisors. Simply complete the form here to get started.
