Proposed Employment Rights Bill amendments published
The first set of proposed amendments to the Employment Rights Bill introduces significant changes to workplace protections, including reforms to tribunal time limits, zero-hours contracts, public sector outsourcing, and trade union rights.
Background
The Employment Rights Bill (ERB), introduced to Parliament on 10 October 2024, is currently at the committee stage. On 27 November 2024, an Amendment Paper was published, consolidating both government-backed and non-government amendments to the Bill. These amendments aim to enhance workers' rights and clarify employer obligations in several key areas.
Key government-proposed amendments
The Amendment Paper includes a range of government-backed proposals designed to update employment law and address current gaps in workplace protections. These amendments are likely to pass. Highlights include:
- Tribunal time limits: extending the limitation period for employment tribunal claims from three to six months for all claim types.
- Cap on compensatory awards: empowering the Secretary of State to impose a cap on compensatory awards for employees unfairly dismissed during the initial employment period established under the Bill.
- Guaranteed hours to zero-hours and low-hours workers: requiring employers to inform workers about their rights to guaranteed hours during an "initial information period" and formally notify them of exceptions. Tribunal claims may be brought for breaches.
- Public sector outsourcing: reintroducing the "two-tier workforce code" to ensure parity of treatment between outsourced contractor hires and public sector workers.
- Trade union access: limiting workplace access rights to trade unions with a certificate of independence.
- Statutory sick pay: extending the provisions for Statutory Sick Pay under the Bill to Northern Ireland, ensuring alignment across the UK.
Non-government amendments
The Amendment Paper also includes several non-government amendments, proposed by opposition and backbench MPs. These amendments are less likely to be adopted. Highlights include:
- Equality action plans: A proposal by Labour MP Gill Furniss would require employers to explain in their equality action plans how they support employees with menstrual health issues.
- Non-disclosure agreements (harassment): A Liberal Democrat amendment would render void any contractual provision preventing workers from disclosing harassment under section 26 of the Equality Act 2010.
- Substitution clauses: An amendment by Conservative MP Nick Timothy would prohibit substitution clauses in contracts for employees, workers, or dependent contractors, ensuring personal performance of work obligations.
- Statutory family leave and pay: Liberal Democrat MPs have proposed doubling statutory family pay rates, extending paternity leave to six weeks (to be taken within 52 weeks of birth), and introducing kinship care leave. Another amendment would require employers with 250 or more employees to publish information about their parental leave and pay policies.
Learning points for employers
Employers should monitor the progress of these amendments and anticipate potential changes to employment law. While the government’s proposals are likely to pass, non-government amendments may signal future legislative priorities. It is advisable to begin considering how policies and procedures might need to adapt to extended tribunal time limits, guaranteed hours obligations, and other key reforms.
The Public Bill Committee is expected to finalise amendments by 21 January 2025.