We recently brought you a three-part series examining the potential Employment Rights Bill and its anticipated journey through Parliament. Now that the bill has been introduced, amid some criticism of a ‘watering down’ following last-minute negotiations with trade unions, we explore what the bill actually contains, how it measures up to expectations, and its likely timeline through Parliament.
On 21 October, the Employment Rights Bill successfully passed its second reading in the House of Commons with 386 votes in favour and 105 against. The Labour government secured a strong mandate for the bill, which will now proceed to the Committee Stage, with proceedings mandated to conclude by 21 January 2025. The vote underscored Labour’s commitment to advancing the bill despite opposition from various quarters, particularly within the Conservative Party.
During the debate, Deputy Prime Minister Angela Rayner advocated for the bill’s importance, emphasising its potential to enhance worker protections for over 10 million employees. She defended the bill’s key measures, including consultations on statutory sick pay, zero-hours contracts, industrial relations, collective redundancy, and fire-and-rehire practices.
However, the bill faced opposition led by Kevin Hollinrake, Shadow Secretary of State for Business and Trade, who moved an amendment to cancel the bill, citing concerns about its impact on SMEs and the potential for increased union influence. Hollinrake argued the bill lacked a thorough impact assessment and could lead to more strikes and taxpayer-funded wage increases. Robbie Moore, Shadow Minister for Environment, Food and Rural Affairs, echoed concerns about the bill’s complexity and potential to overwhelm small businesses with additional regulations.
Jonathan Reynolds, Secretary of State for Business and Trade, firmly defended the bill, pointing out that the Labour government had delivered the long-promised reforms within its first 100 days, contrary to Conservative delays. He argued that while the bill would slightly increase employment costs, it would lead to a more productive and dynamic market by investing in the workforce.
The bill introduces 28 employment reforms, ranging from ending zero-hours contracts and ‘fire and rehire’ practices to establishing day-one rights for paternity, parental, and bereavement leave. Below, we revisit the nine key measures outlined in Part 1 and assess whether they have been included as expected.
Additional Harassment Provisions:
Legislation coming into force at the end of this month will place a duty on employers to take reasonable steps to prevent sexual harassment. The bill strengthens this by making it an obligation to take all reasonable steps, with further regulations to clarify what will be reasonable. One of the most significant changes is liability for third-party harassment of employees (which was previously removed from the legislation coming into force at the end of October). Reporting sexual harassment will also become a protected disclosure for the purposes of whistleblowing.
The Employment Rights Bill is a Labour government priority and, given Labour’s majority, is expected to pass through Parliament with relative ease. However, the bill is likely to face further scrutiny and possible amendments, especially as it progresses to the Committee Stage and through additional consultations.
The introduction of the Employment Rights Bill marks a pivotal moment in UK employment law, with Labour delivering many of the reforms it had promised. Despite some criticisms of compromises, particularly following union negotiations, the bill presents significant changes for employers to navigate, including the end of zero-hours contracts, strengthened unfair dismissal protections, and further changes to sexual harassment protection. While some rumoured measures, such as compressed hours, were omitted, the bill still represents a broad shift in employment practices.
Employers will need to closely monitor the bill’s progress, particularly as consultations on key areas such as probation periods and secondary legislation unfold. With the earliest implementation date projected for autumn 2026, businesses will have time to adjust to these sweeping changes.
As the bill moves through Parliament, it will be important for employers to stay informed and prepare for the reforms that are set to reshape the employment landscape. We will continue to keep you updated on the progress of the bill and any amendments that arise.
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