The Employment Rights Bill of 2024 introduces many new reforms that are aimed to enhance employee protections while imposing new responsibilities on employers.

Key provisions of the Employment Rights Bill and their implications for Employers

1. Flexible working requests- Employers must now accommodate flexible working requests from employees starting on day one of employment. An employer can still refuse a flexible working request, however, they must provide detailed written justifications for their refusal e.g might not be suitable for the specific business.

2. Family leave and bereavement rights- Employees now have eligibility for parental, paternity leave as well as bereavement leave. Whilst this is beneficial for the employee, this could disrupt operations of business for employers especially smaller firms.

3. Statutory sick pay- Sick pay will now start from the first day of absence and income thresholds have been removed. Employers, therefore, face higher costs especially for low-paid workers or those in physically demanding roles prone to illnesses.

4. Regulations on zero-hours contracts- Employers must offer guaranteed hours to qualifying workers and provide reasonable notice for shift changes or cancellations. These requirements will reduce operational flexibility but improve workforce satisfaction.

5. Mandatory Equality Action Plans- Larger employers (250+) are required to publish annual equality and diversity plans which adds another layer of compliance and reporting, which will require HR resources.

6. Ban on Exploitative Internships- The proposed ban on unpaid internships, may increase costs for employers, but it will also clarify the employment status of interns, reducing legal uncertainties.

7. Ban on Fire and Rehire Practices- The Bill will make it automatically unfair to dismiss an employee if the main reason for dismissal is due to the employer wanting to vary the employee’s contract. This makes is harder for employers who have genuine reasons for wanting to restructure or change the contractual terms for business reasons.

The impact the budget has on employers

1. National Living Wage increase- The National Living Wage has been increased which narrows pay gaps between age groups. This raises labour costs for employers, especially in industries like hospitality and retail where wages are usually lower.

2. Business Tax Adjustments- Corporate tax relief for green investments and training initiatives was introduced, encouraging long-term growth and sustainability. However, the overall tax burden remains high for many businesses, limiting immediate profitability.

3. Support for SMEs- Enhanced funding for digital transformation and energy efficiency upgrades provides a lifeline for small and medium enterprises (SMEs). However, accessing these benefits may require navigating complex application processes, adding to administrative burdens.

4. Infrastructure and Training Investments- The Bill emphasises increased funding for training programs. While this could address skill shortages, employers may initially face challenges in upskilling existing staff.

Overall, the Employment Rights Bill and budget has created some future challenges for employers, whilst also creating opportunities for employees. Employers must balance compliance with operational efficiency while embracing reforms that prioritise employee well-being.

If you require any advice on your employment matters, please contact our Employment Law team on 01604 936512 / 01908 953674 or email info@franklins-sols.co.uk.

The new law provides special protection to pregnant women and employees that are returning from certain types of family leave in a redundancy situation. The Protection from Redundancy (Pregnancy and Family Leave) Bill received Royal Assent on 24 May 2023 and became the Protection from Redundancy (Pregnancy and Family Leave) Act 2023. The Act came into force on 24 July 2023.

What protection will employees be given?

The law provides greater protection to women that are on maternity leave or an employee that is on adoption or shared parental leave in a redundancy situation. In other words, before making a woman who is on maternity leave (or an employee on adoption or shared parental leave) redundant, an employer must offer a suitable alternative vacancy to them, where one is available.

Who will be protected?

The Act extends protection to:

• A pregnant employee who is in “a protected period of pregnancy”;
• An employee who has recently suffered a miscarriage;
• Employees returning from maternity leave;
• Employees returning Adoption leave; and
• Employees returning from Shared parental leave.

Expectant mothers could be provided with a period of up to 24 months protection on the basis that they:

• Inform their Employer of their pregnancy at the 3-month stage and
• Take the full 12 months of maternity leave; and

This works out as follows:

1. Six months’ protection during pregnancy, plus
2. Twelve months’ protection during maternity leave, plus
3. Six months’ protection on their return to work.

What does it mean for Employers?

Employers are not required to take any immediate actions at the moment as the Guidance regarding the implementation of the Act is still awaited. The Guidance will provide further regulation explain how the new legislation will work. In the meantime, employers should be aware of the new Act but wait for the Regulations before implementing the Act.

In the meantime, Employers should consider the implications and update their policies to ensure they are compliant with the legislation and minimize the risk of potential discrimination claims on the grounds of pregnancy and/or maternity. Employers will be required to implement processes to identify the timeframe of earlier periods of maternity leave in redundancy situations, adopt systems to identify alternative suitable vacancies across the organisation and creating a supportive environment for employees returning from family leave.

If you require any employment advice, please contact our Employment Law team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk