7th March 2025 ❘ Legal News and Commentary

Amendments to the Employment Rights Bill – The Headline News

Amendments to the Employment Rights Bill – The Headline News

 

On the 6th of March 2025, the Government published the first of many amendment papers to the Employment Rights Bill. Below our Employment team details the key points:

 

• Statutory sick pay – lower earners will either receive 80% their average weekly earners or SSP whichever is lower. Currently those earning below the lower earnings limit (£123 per week) are not eligible to receive SSP, this will be removed. This could see increased costs to some businesses extending this right to receive SSP. Companies should review their sickness absence policies and update accordingly.

 

• Umbrella companies to be regulated – ensuring comparative rights for employees when engaged through an umbrella company. An umbrella company is where a business uses recruitment agencies to engage temporary workers. They employ and pay the workers and theoretically employees of an umbrella company should have the same employment rights as other employees. The bill has announced regulations to be imposed to make these companies accountable.

 

• Collective consultation – aiming to end firing and rehiring. The maximum protective award will be doubled from 90 days’ pay to 180 days’ pay for each employee and the Government is also changing when collective consultation will be triggered.

 

• Zero hour workers – right to guaranteed hours reflecting the hours worked in a 12 week reference period. This will extend to agency workers, with the responsibility falling on the end user of the worker’s services. Legislation supposedly will allow some flexibility to negotiate between parties and an exception to offer guaranteed hours where the work is genuinely temporary, for example seasonal work. The recent amendments also confirmed a right to be given reasonable notice of shifts, or changes in shifts and a right to payment each time a shift is cancelled or changed at short notice. This is being imposed to give workers greater financial security.

 

• A modern framework for industrial relations – a number of amendments made concerning trade unions and industrial relations. These include strengthening protections during the recognition process, extending the expiry of a trade union’s mandate for industrial action to 12 months as opposed to the current six months, a requirement for a 10 day notice period for industrial action and many more. The consultation highlights the Government’s commitment to ensuring greater access and greater protections for trade union representatives and measures.

 

Some of these amendments will have a noticeable impact for companies, however we are yet to hear more on the significant proposals, for example the suggested day one unfair dismissal rights. For more information about any of these amendments or if you wish to discuss how this may impact your business and how you can prepare now, please contact our Employment team. The Bill is currently at its report stage in the House of Commons and due to have its third ready next week, on Tuesday 11^th and Wednesday 12^th March 2025. You can find out more here.