The not-so-new Labour Government had promised to implement wide-sweeping employment law changes in its first 100 days of power – so by this week!
After the announcement yesterday, we have a slightly better idea of what’s planned, but there is not a great deal of detail for us to focus on, and no dates for implementation have been given, although October 2026 has been mooted.
So, what’s planned in the Employment Rights Bill (ERB) that affects smaller organisations?
- A day-one right to claim unfair dismissal subject to a probationary period – which will likely only apply to those already in employment.
- A clamp down on the exploitation of zero-hours workers with organisations required to give reasonable notice of hours to be worked and payment for short notice cancellations.
- Statutory sick pay from day one (rather than day four, as now).
- Bereavement leave for all – not just for parents who lose a child.
- Fire and rehire – used to force employees to agree to a contract variation – will be automatically categorised as unfair dismissal unless the organisation has financial difficulties. This will make it extremely difficult for employers to force through contract changes to which employees do not agree.
- Expansion of collective redundancy consultation – 20 employees across the whole business, not just 20 at one workplace.
- Liability for third-party harassment of staff.
- Flexible work refusals must be reasonable – which goes further than the current requirement where any refusal must be for one of the specified reasons.
Watch this space for future updates as the new laws are clarified. If you have any questions about the effect of the Employment Rights Bill or any other area of law, please get in touch with our expert HR team.