Labour’s Bill on employment rights strikes positive notes with lawyers

The Bill, introduced this week, creates a right to paternity and parental leave and protection from unfair dismissal from the first day in the job. It strengthens flexible working rights and introduces a right to bereavement leave from day one, bans most zero-hours contracts, and aims to end the practice of ‘fire and rehire’ whereby employers terminate contracts and re-recruit employees on less favourable terms.

It introduces a statutory probation period for new employees—the government proposes nine months’ probation, but will consult on the length.

The Bill also strengthens statutory sick pay, removing the lower earnings limit and cutting out the waiting period before sick pay begins.

Francesca Lopez (pictured), senior associate, employment, Kingsley Napley, said: ‘The radical changes to UK employment law which Labour promised are now well and truly underway.

‘These changes are laudable—there is no dispute about that—but they do have potentially serious unintended consequences. Will the day one rights to claim unfair dismissal mean that some employers will steer away from recruiting candidates that are not the obvious “right fit” for the role? Discrimination legislation continues to provide protection but will increased caution make it harder for candidates that are younger/older, have less relevant experience, have been on a career break, require more training/supervision or have childcare/caring responsibilities to get jobs?

‘All workers will be entitled to flexible working by default and employers will have to accommodate requests “as far as reasonable”. But how will reasonableness be assessed? No guidance has been provided as yet, and without it, businesses may struggle to apply the changes in context and/or face increased litigation if they refuse requests.’

Lopez said the proposals ‘undoubtedly increase the chance of employment disputes, when the changes come into effect in two years’ time, and employers need to brace themselves accordingly’.

Elizabeth Watt, employment solicitor, WSP Solicitors, offered reassurance for employers, emphasising not only that the reforms may not come into force for ‘years’ but that ‘increasing statutory sick pay and maternity and paternity pay will impose no additional cost to their company.

‘As in the current system, all statutory pay is paid by government’.

Extra costs for employers could arise, however, in the shape of the human resources processes that will need to be reviewed, implemented and updated, Watt said. ‘There will be lots of contractual changes that businesses will need to consider, which could cost some companies thousands.’

On potential tribunal claims, Watt said: ‘The Bill could lessen tribunal claims thanks to having a clearer piece of legislation in place however, countering this argument is the new Workers Protection Act, which comes into law on 26 October and could open the floodgates to a surge in tribunal claims.’

Anna Dabek, partner, Anthony Collins, noted that the proposals ‘stopped short of an outright ban on zero hours contracts.

‘Workers on low hours contracts will be given the right to request predictable hours if they have worked a period of regular hours. This enables those workers who chose to remain on zero hours contracts the option to do so. The government has made room for choice, which is vital for sectors like health and social care for whom zero-hour contracts are a bed-rock for staff supply.’