The long-awaited Employment Rights Bill 2024 (ERB) was published in October 2024 (see link below for ERB and contents). The Bill brings forward major legislative changes which are set to shift the landscape of employment law as we know it – described by the Prime Minister as ‘the biggest upgrade to workers’ rights in a generation’.
This article addresses the parts of the ERB which pose real issues for lawyers: day-one unfair dismissal rights; fire and rehire; flexible working; and zero hours contracts.
When will the changes take effect?
The Government is expected to begin consulting on these reforms in 2025, seeking significant input from stakeholders. It is anticipated that the majority of reforms will take effect no earlier than 2026.
Day one Right to Unfair Dismissal
Arguably, the biggest news in the ERB is the provision of a ‘day one’ right to bring an unfair dismissal claim removing the current two-year qualifying period required to bring an unfair dismissal claim.
The government has confirmed that the reforms to unfair dismissal will not come into effect any sooner than Autumn 2026, with the current qualifying period continuing to apply until then.
Fire and rehire
The changes brought forward by the ERB will make it automatically unfair to dismiss if the principal reason for dismissal is either that an employee refuses to agree to a variation of contract sought by an employer; or to enable an employer to recruit another person; or re-hire the employee under new terms but with substantially the same duties.
Exceptions to the practice will exist if the reason for the variation is to significantly reduce or mitigate the effect of any financial difficulties that already, or are likely in the immediate future to, affect the business as a going concern – and in all the circumstances, an employer could not reasonably have avoided the need to make the variation.
Even then, the employers must ensure a fair process is followed, with particular focus on consultation with the employee and any recognised union.
Flexible Working
The ERB strengthens flexible working rights, with employers only being able to turn down requests for flexible working if their reason for doing so falls within the widely drafted list of ‘acceptable business reasons’ to refuse requests (see link below for list).
Employers will also be required to write to employees stating the ground/s for refusing a flexible working request, explaining why the employer considers the decision to be reasonable.
Currently, employees can request flexible working arrangements such as working from home or compressed hours from their employer. Flexible working requests can be submitted at any point during the course of employment with no duty on an employer to agree to such arrangements.
Zero Hour Contract
Currently, there have been no statutory restrictions on zero-hour contracts, so employers can use them to offer workers varied working hours on a week-by-week basis.
Changes by the ERB can require employers to offer workers a guaranteed-hours contract based on the hours they have completed during a 12-week reference period. There will also be a right to reasonable notice of a shift for workers and a duty to compensate them for cancelling shifts without reasonable notice.
What can you do to get ahead as an in-house lawyer?
- Review your client’s current policies and procedures and ensure that they will be compliant with the upcoming changes
- Deliver updates of the ERB and training to your HR teams on key issues
- Review areas of the organisation that can be impacted by the changes, proactively raise flags with interested parties, and make preparation before the implementation of the ERB
- Stay ahead of updates by attending masterclasses and follow trusted resources on next steps by the government on the implementation of the ERB
Links to related resources
By Afsarah Haque-Hassan, Solicitor at National Highways and Committee Member of Birmingham Law Society’s In-House Lawyers Committee