On 4 March 2025, the Government announced several important amendments to the Employment Rights Bill.
The Government response to the consultation on strengthening remedies against abuse of rules on collective redundancy and fire and rehire confirms that the amendment being tabled is for the protective award to be doubled from 90 to 180 days.
It should be taken into account that where an employer has been found to have not reasonably followed the Code of Practice on Dismissal and Reengagement an employment tribunal may apply an uplift in compensation of up to 25% to a protective award. The doubling of the award to 180 days means that the 25% uplift could now increase the protective award by up to the equivalent of 45 days compared to the current 22.5 days.
The good news for employers is that the Government has rejected the proposal to remove the cap altogether.
More importantly, it is not extending the ability to claim interim relief where there has been a breach of the collective consultation provisions or in relation to fire and rehire situations. It considered that the responses had shown there would be implementation issues raised in relation to interim relief given the short deadline for application and the remedy was therefore unlikely to be effective.
In the Government response: Making Work Pay: Strengthening Statutory Sick Pay the issue of how to extend Statutory Sick Pay (SSP) to lower paid workers has resulted in the proposal being put forward that employees who do not qualify for SSP because of their low wages will either receive 80 per cent of their average weekly earnings or the current rate of Statutory Sick Pay – whichever is lower.
The measures in the Employment Rights Bill that are aimed at deterring the abuse of zero hours contracts will be extended to agency workers too. These provide a right for employees to be given an offer for guaranteed hours based upon the hours worked over a reference period of 12 weeks. The Government response to the consultation on the application of zero hours contracts measures to agency workers confirms that amendments to the Bill will be tabled so closing a potential loophole in the protection.
The obligation to offer a guaranteed hours contract will be on the end hirer. This may trigger obligations to pay a transfer fee to the agency under the Conduct of Employment Agencies and Employment Businesses Regulations 2003. It will be an issue that will need to be considered in the terms between the hirer and agency.
It should be highlighted too that the obligation to offer guaranteed hours will not apply where there is shown to be only a temporary need for the work e.g. seasonal work requirement.
The further entitlement to compensation for late shift cancellations or changes will also apply to agency workers. The liability will be on the agency but there is an expectation that the terms of the hire agreement will provide for a means to recover these sums. In this respect, there will be provision made to allow for agencies to claim from the hirer that will apply for a limited period after the passing of the Employment Rights Bill.
Changes in relation to industrial relations rules were also confirmed in the Government response to the consultation on creating a modern framework for industrial relations.
In relation to the creation of new access agreements under the Bill an amendment will allow agreements to also cover virtual access. It will also be added that “supporting a trade union member with an employment-related matter” will be a situation covered by the principle of access.
Industrial action mandates currently expire after six months from the ballot, but the amendment will extend this to 12 months.
Notice to employers of industrial action had been proposed to reduce to 7 from 14 days; however, it will now be amended to 10 days.
Tackling non-compliance in the umbrella company market provides that amendments will also be made to enable workers to have access to comparable rights and protections when working through an umbrella company as they would when taken on directly by a recruitment agency.
In related news, it has also been reported that the Government is set to drop its plans to introduce a ‘right to switch off’. This had been expected to be the subject of a Code of Practice setting out guidance and expectations for employers to avoid contacting employees outside of work hours.
The amendments to the Employment Rights Bill will now be debated and it is expected to proceed through the House of Commons Report Stage with a Third Reading scheduled for 11 and 12 March 2025.
The implementation of these changes will still be several months away with most unlikely to be in force until 2026.
It will, however, be important for employers to take steps to prepare for these changes in order to ensure that managers and staff are familiar with the new rights and obligations before they are implemented.