Government Introduces Employment Rights Bill – What It Means for You
Article posted October 14, 2024, Tagged in Advance
Article posted October 14, 2024, Tagged in Advance
Last Thursday, 10th October 2024, the Government introduced the Employment Rights Bill. Please click here to access the full document, which includes 28 key policies. Below is a high-level summary of what we believe are the most relevant updates for the recruitment sector.
Firstly, it is important to note that this Bill presents no threat to the umbrella sector. Although it potentially adds greater responsibility on employers and agencies running payroll, it reinforces the need for compliant, well-managed solutions. ADVANCE remains in a strong position to continue supporting you and your workforce throughout the supply chain.
It is also important to clarify that whilst the Government intends to end ‘exploitative’ zero-hour contracts. ADVANCE are not a zero-hour employer (as are all FCSA accredited members). We offer guaranteed hours contracts, ensuring greater security for workers.
The Bill is currently a “Framework Bill,” meaning nothing is finalised yet, and further consultations will be held. The Government are also open to business concerns, including those specific to the recruitment sector.
ADVANCE are well-equipped to keep you informed of these developments and to support you through any potential changes, with expert guidance from leading advisors John Chaplin, Senior Partner & Head of Policy at BDO, and Rob Riley, Associate Partner & Head of Employment Law at EY.
Some key points are listed below:
Timeline: Most changes won’t take effect until 2026, with no confirmed timeline yet.
Employment Status: A consultation on employment status is planned, with the Government considering a clearer two-part framework: employment and self-employment.
Zero-Hour Contracts: The Government intends to end 'exploitative' zero-hour contracts. Workers will still have the option to remain on a zero-hour contract if they choose, but those who work regular hours over a defined period will have the right to request a guaranteed hours contract.
Statutory Sick Pay: Strengthened rights will change the lower earnings limit and remove the current waiting period, allowing employees to claim sick pay from the first day of illness.
Other proposed changes include:
A new day-one right for employees to protection from unfair dismissal, whilst still allowing employers to operate probationary periods of up to 9 months.
Day-one rights for parental and bereavement leave.
Protections for pregnant women and new mothers within 6 months of returning to work.
The right to request flexible working as a default from day one, promoting a better work-life balance.
ADVANCE are here to help guide you through these changes and provide the best possible solutions for you and your workforce. We are well-positioned to take the stress out of managing these transitions, allowing you to focus on running your business.
We will continue to keep you updated as further information is published, and plan to issue another blog post following the Budget announcement on 30 October.
In the meantime, please feel free to reach out if you have any questions or need assistance, and do not hesitate to contact our team on 01244 564 564. We will provide an update on the Autumn Budget following the chancellor's full statement.