Earlier this week the Government published its responses to its consultations on various aspects of the Employment Rights Bill:

  1. on strengthening remedies against abuse of rules on collective redundancy and fire and rehire
  2. on the application of zero hours contracts measures to agency workers
  3. on strengthening statutory sick pay
  4. on creating a modern framework for industrial relations

FIRE AND RE-HIRE

Key points to note from the response include:

  • The cap on protective awards in collective redundancy situations will be increased from 90 days to 180 days to encourage employer compliance.
  • The proposal to introduce interim relief for claims related to protective awards and unfair dismissal due to fire-and-rehire will not go ahead, as the Government acknowledged the potential burden on businesses and tribunals.
  • Recognising employer concerns, the Government has committed to issuing further guidance on collective consultation processes to support compliance.

ZERO HOURS CONTRACTS

The Employment Rights Bill already includes complex proposals for low and zero-hours workers covering three key areas:

  1. the right for qualifying workers to be offered guaranteed hours based on hours worked in the relevant reference period;
  2. the right to reasonable notice of shifts and shift changes; and
  3. the right to compensation for short-notice cancellations or curtailments.

To extend these protections to agency workers, the Government will introduce a framework through secondary legislation. The consultation response provides some insight into how this will operate:

  • Shift notification responsibility will fall on both the employment agency and the end hirer, with tribunals able to apportion liability.
  • Compensation for short-notice cancellations will be paid by the employment agency, which can recover costs from the hirer under existing agreements.
  • The Secretary of State will have the right to publish regulations on how agency workers receive notifications regarding shifts and cancellations.
  • The obligation to offer guaranteed hours to qualifying agency workers will rest with the end hirer.
  • A temporary work exception will apply where there is a genuine short-term need (e.g. seasonal work).
  • Existing extended hire periods and transfer fees under The Conduct of Employment Agencies and Employment Businesses Regulations 2003 will remain in place.

SSP FOR LOW EARNERS

Currently, workers earning below the Lower Earnings Limit (LEL) (£123 per week, rising to £125 in April) are ineligible for Statutory Sick Pay (SSP). The Employment Rights Bill will remove this threshold, making SSP available to all employees.

To ensure fairness, SSP for lower earners will be calculated at 80% of the standard SSP rate, provided that 80% of a worker’s normal weekly earnings is less than the flat rate. This amendment will be introduced when the Bill reaches the Report stage in the House of Commons next week.

TRADE UNIONS

The is proposing to make several changes to the current provisions in the Employment Rights Bill dealing with trade unions. Headline changes include:

  • The notice period for industrial action will increase from 7 to 10 days.
  • The Central Arbitration Committee will gain enforcement powers to issue fines for non-compliance with trade union access rights.
  • The proposal to remove the 50% ballot turnout threshold for industrial action will not be implemented immediately. Instead, it will likely be introduced alongside e-balloting.
  • The validity of an industrial action mandate will be extended from six to twelve months.
  • To prevent mass recruitment from influencing trade union recognition, the size of the bargaining unit will be fixed when the CAC receives the recognition application.
  • Virtual access to workplaces for trade unions will be permitted.
  • Unions will no longer need to ballot members every 10 years on maintaining a political fund. Instead, there will be a requirement to give members notice of their right to opt out of the political fund every ten years.

The Government has also reaffirmed its commitment to broader industrial relations reforms, including:

  • Introducing e-balloting and workplace balloting for trade union votes
  • Lowering thresholds for trade union recognition ballots
  • Enhancing protections for trade union representatives and members through secondary legislation