The Employment Rights Bill: Shaking up the UK workplace

The Employment Rights Bill

As we approach April 2025, when the increases in national insurance and minimum wage come into force, employers will also be looking ahead to the Employment Rights Bill and its implications for their businesses. The Regulatory Policy Committee (RPC), which assesses the impact of new legislation, has delivered a critical assessment of the proposed changes.

The RPC has stated that 8 out of 23 impact assessments related to the Bill have been designated “not fit for purpose.” Alarmingly, six of these assessments received the highest impact category. The measures flagged as problematic include several of the Government’s flagship proposals:

• Day 1 unfair dismissal rights
• Repeal of Trade Union Rights 2016
• Flexible working changes
• Harassment by third parties
• Repeal of Strikes (Minimum Service Levels) Act 2023
• Establishing a Fair Pay Agreement

The RPC has recommended that further impact assessments are needed to understand the true effects on employment, wages, and output, as well as the costs to employers and how these may be passed on to employees.

This critical evaluation raises questions about whether the legislation is ready for implementation and challenges the overall approach being taken by the Government regarding employment law. We will keep you posted on any developments.

Proposed Amendments to the Employment Rights Bill

You might hope that the mention of amendments to the Employment Rights Bill refers to a critical review by the RPC; however, this is not the case. The proposed amendments are simply changes that the Government wishes to make to its original draft, some of which could have significant implications:

• A time limit of 6 months for all Employment Tribunal claims, whereas currently most (though not all) have a 3-month deadline.
• Defining the initial period of employment for Day 1 unfair dismissal rights as between 3 and 9 months.
• Adding menstrual problems and disorders to the definition of “matters related to gender equality,” which may require employers to produce equality action plans.
• Clarifying that a Trade Union’s right to enter workplaces will not include those that are also residential properties.

We will see whether these impact assessments influence the force and scope of the Bill, though it seems clear that the Government is keen on making radical changes to the employment landscape.

We’ll continue to monitor the situation closely and provide updates as the Bill evolves.

No responsibility for loss caused to any person by acting or refraining from acting as a result of this information can be accepted by Hamers Solicitors LLP. If you have any doubt about any of the matters raised above, please seek further advice.