On Wednesday 27 November 2024, the UK government published an Amendment Paper (the “Paper”) on the Employment Rights Bill 2024 (the “Bill”). The Paper includes many changes to the Bill, most of which are relatively minor, but there are also some significant updates, including:
- specifying that the new concept of an ‘initial period of employment’ (i.e. a statutory probation period) will be between three and nine months for the purpose of unfair dismissal;
- extending the time limit for bringing all employment tribunal claims from three to six months (subject to extensions for early conciliation through Acas);
- providing employment tribunals with discretion as to the size of any monetary award (up to an amount to be specified in further regulations) for complaints against employers for shifts that are cancelled, moved, or curtailed at short notice; and
- adding menstrual problems and menstrual disorders to ‘matters related to gender equality’, which employers may have to produce equality action plans on.
The Bill also proposes to make unfair dismissal a ‘day one’ right, although this will take effect no sooner than Autumn 2026. Until then, the current two-year qualifying period still applies. Details of the new framework remain uncertain, although the Bill introduces an ‘initial period of employment’ during which an employee may be dismissed following a ‘light touch’ process.
Increasing the time limit to bring employment tribunal claims from three to six months is a significant change that undoubtedly benefits employees, whilst creating more uncertainty for employers by effectively doubling the length of time that they are exposed to the risk of a claim. It is unclear why such a significant proposal was not included in the original Bill.
Whilst zero-hour contracts are not entirely prohibited, the Bill aims to provide those workers with greater certainty around their hours of work. Employers with greater reliance on zero-hour workers may wish to review their processes in respect of short notice shifts to mitigate losses that could arise from successful claims.
Finally, employers with over two hundred and fifty employees will be required to publish equality action plans. This amendment requires employers to detail how they are supporting employees with menstrual problems and menstrual disorders in their plans. Whilst the details of reporting requirements are yet to be outlined, employers may wish to consider their current gender pay gap reporting and whether they have appropriate policies for employees going through the menopause as well as employees with menstrual problems and menstrual disorders.
In addition to these amendments, the Paper sets out the following proposals:
- the inclusion of a provision rendering void any non-disclosure agreement, insofar as it prevents the worker from making a disclosure about harassment (including sexual harassment); and
- prohibiting the use of ‘substitution clauses’, which currently permit companies to allow their suppliers to appoint a substitute to supply services on their behalf.
We will continue to monitor and provide updates on the development of the proposed reforms.
London Associate Joe Babos and Trainee Kate McMahon also contributed to this article.
