Publication of the Government’s Employment Rights Bill yesterday (10th October) and the announcement of the widening of day-one employment rights, cites one of the biggest changes to employment law and the rights of workers for a generation, states Tom Clarke, Employment Law Associate at Hay & Kilner.
Legislation presented to Parliament includes 28 policies including day one employment rights, abolishing fire and rehire, improving maternity rights, tightening zero hours contracts and modernising trade union laws.
Implications of such changes in legislation, which sees the removal of the two-year unfair dismissal qualifying period, includes one day employment rights, abolishing fire and rehire.
“Since the right to claim unfair dismissal became law in 1971, the qualifying period to bring such claims has ranged from between six months and two years,” he said.
“This is one of the biggest changes we have seen to employment law for many years and combined with the other proposals introduced today, will represent a shift for some employers and is likely to see a rise in claims for unfair dismissal in the Employment Tribunal.
“A significant emphasis will now be placed on the new 9-month probationary period (previously expected to be 6 months) as the new legislation still allows employers to end employment during this time with only a limited process required.
“Even accounting for probationary periods, this will be a significant change for employers, as it is currently relatively easy to dismiss an employee within their first two years of employment.
“The slightly extended probation period will give employers a bit more flexibility, but many will need to monitor new recruits much more closely and perhaps be more rigorous in their hiring procedures.
“However, one potential benefit of employees getting full employment rights much earlier, is the likelihood that they become more willing to move jobs, in turn making recruitment easier.”
Other key changes include significant tightening on the use of zero-hour contracts, including giving workers a right to guaranteed hours.
Zero contract hours, also known as casual contracts, means hours are not guaranteed from employers and they do not have to work when asked. Under the new legislation, employers will be required to offer zero-hours workers a guaranteed hours contract based on the hours they work during a 12-week period.
Maternity rights will also be extended further, prohibiting the dismissal for up to six months after the return from maternity leave and during maternity leave other than in very limited circumstances.
Provision for sick pay will also change with the removal of the lower earnings limit for Statutory Sick Pay (SSP) along with the current three-day waiting period.
Tom added: “The Government’s removal of the lower earnings limit, but particularly the 3-day waiting period for SSP will add cost for employers and could lead to an increase in short-term absences which will require a closer level of management and scrutiny.”
Hay & Kilner will be hosting a free webinar on Tuesday 15th October to discuss the changes within the Employment Rights Bill in more detail. Please visit the website here for further information and to book a place.
To discuss employment law with the team, please call 0191 232 8345