The Employment Rights Bill nears the finish line
The Bill has now cleared its final hurdles in the Commons, bringing Royal Assent within sight.
On 15 September, MPs considered the amendments made by the House of Lords. The Government’s technical changes were approved, while the non-government amendments, including proposals for a six-month qualifying period for unfair dismissal and a diluted right to guaranteed hours, were rejected. With those issues resolved, the Bill is now on track to become law in the near future.
Implementation timetable
With the Bill now nearing Royal Assent, attention turns to how and when the new rights will take effect. Some measures, such as the repeal of the Trade Union Act 2016, will take effect automatically two months after Royal Assent. Others, including the headline reforms on zero hours contracts, day one unfair dismissal rights and changes to collective consultation, will require consultation and secondary legislation before they can be implemented. The Government has signalled an ambitious programme of consultations this autumn, covering areas such as day one unfair dismissal rights, fire and rehire reform and a suite of trade union measures.
The recent cabinet reshuffle, which saw the departure of Angela Rayner and Justin Madders from Government, has prompted questions about how implementation will be managed. The roadmap for consultations and secondary legislation has already been published, but the pace or order of delivery could shift depending on the priorities of the new minister for employment rights. At present there has been no official indication of change, so any impact remains speculative.
What this means for charities
Charities, like all employers, will need to prepare for the most significant overhaul of employment law in a generation. The changes will affect workforce management practices across the board, from recruitment and probationary periods to the use of bank or casual staff. For many organisations, the new guaranteed hours regime will be particularly relevant where there is reliance on bank staff, sessional workers or those engaged to cover peaks in demand. The introduction of day one unfair dismissal rights will mean that probationary processes must be carefully structured, with more emphasis on support, training and documentation from the outset. Larger charities should also be alert to the need to revisit redundancy and restructuring procedures to ensure these align with the new collective consultation framework.
Learning points
The timetable for implementation is now public, with some measures taking effect automatically and others to be phased in following consultation and secondary legislation. What remains uncertain is whether the cabinet reshuffle will alter the Government’s priorities or slow the pace of the programme. At this stage, there has been no official indication of change, but employers should be alert to the possibility that parts of the roadmap may shift. For charities, the prudent approach is to plan on the basis that the core reforms will come into force broadly as scheduled, while keeping an eye on any adjustments in timing. Early preparation will help trustees and senior leaders anticipate the financial and operational impact of these changes and ensure processes are in place to manage risk and support their workforce effectively.
For more information, please contact Joanne Oliver or Jess Scott-Dye in our Employment team.