The Bill continues to evolve, with recent Government-backed amendments following responses to consultations on zero-hours contracts for agency workers, collective redundancy remedies, trade union law, statutory sick pay, and the regulation of umbrella companies. We summarise below the key amendments that are most likely to become law.
The Bill introduces a new framework for agency workers, ensuring they receive guaranteed hours and compensation for cancelled shifts. The responsibility for offering guaranteed hours will rest with the end hirer, except in specific cases to be set out in secondary legislation. Both the end hirer and agency will be responsible for providing reasonable notice of shifts, cancellations, and changes. Agencies must make payments to workers affected by short-notice cancellations but may recover these costs from hirers where the hirer was responsible.
The maximum protective award for failure to comply with collective redundancy consultation requirements will double from 90 to 180 days' pay. The Government will also gather further views on strengthening collective redundancy rules and update the Code of Practice on Dismissal and Re-engagement to reflect the Bill’s provisions on ‘fire and rehire’. However, interim relief will not be made available for employees bringing protective award claims or unfair dismissal claims in a fire and rehire scenario.
Several amendments aim to 'modernise' industrial relations, including:
The lower earnings limit for SSP eligibility will be removed, meaning all employees will be entitled to SSP regardless of earnings. However, employees earning below a certain threshold will receive the lower of 80% of their average weekly earnings or the statutory SSP rate.
A new amendment will allow umbrella companies to be regulated for employment rights purposes. Further consultation will determine how to ensure workers engaged through umbrella companies have comparable rights and protections to those directly engaged by employment businesses.
Many of these amendments will require further regulations to set out the details. The Government has confirmed that:
The proposed amendments, if enacted, will have wide-ranging implications for employers across all sectors. Employers with agency workers, trade union relationships, and collective redundancy obligations should monitor developments closely and prepare for policy changes once secondary legislation is introduced.
Bookmark our Employment Rights Bill tracker to keep up with the latest on the Bill. We will continue to report on developments.