The implications of the Employment Rights Bill for your workplace

Workplace reforms that grant workers additional rights to benefits and flexible scheduling are making headway in Parliament

This week, new worker rights passed the first parliamentary hurdle, bringing them one step closer to becoming law. However, it is unclear if plans for a right to switch off have been abandoned.

The Employment Rights Bill, one of the main pieces of legislation of the Labour government, intends to provide workers with flexible working hours, parental leave, and sick pay from the moment they begin employment, instead of requiring them to wait to pass a probationary period.

The Bill, which proposed 28 workplace reforms, including "day one rights" for sick pay, parental and bereavement leave, and paternity leave, was first introduced in Parliament last October.

Although MPs questioned the government during debates, the "right to switch off" that would prohibit managers from contacting employees after hours has not been included in the legislation.

In spite of this, the Bill was supported by MPs last night by 333 votes to 100 at its third reading in the Commons.

Now it will be sent to the House of Lords for review.

Deputy Prime Minister Angela Rayner stated: "With the largest improvement in workers' rights in a generation, we are turning the corner, raising living standards, improving our growth prospects, and implementing the reforms our economy sorely needs."

These are some potential effects of the Employment Rights Bill on your job, though it will be several months before any of the proposals are signed into law.

First-day rights.

Employees are protected from wrongful termination under current employment laws after two years, and they might only be eligible for some benefits after a few months or even years.

The current two-year qualifying period for protections against unfair dismissal will be eliminated by the legislation, and the government will also consider a new statutory probationary period for new hires.

Staff will have the right to paternity, parental, and bereavement leave from day one instead of having to wait through a probationary period.

The government also announced plans to strengthen statutory sick pay, eliminating the lower earnings cap for all workers and eliminating the waiting period before sick pay begins.

Expectant mothers and new mothers who return to work will also be protected from termination during pregnancy, maternity leave, and the six months after they return to work.

A right to work whenever you want.

Since the pandemic, working from home or in a more flexible manner has grown in popularity, but employers are not currently required by law to facilitate this.

Unless the employer can demonstrate that it is unreasonable, the Employment Rights Bill will make flexible working the norm for everyone.

Furthermore, the Employment Rights Bill mandates that big companies with 250 or more workers create Equality Action Plans outlining their plans for menopausal support.

Additionally, the government will release guidelines to assist smaller employers in implementing workplace changes pertaining to menopause-related leave and absence, flexible scheduling, and improved uniforms to help with hot flashes.

As a leadership expert at Full Potential Group, Carole Gaskell states that "from an employee perspective, flexible working typically improves motivation, especially for colleagues motivated by autonomy."

"Multigenerational workforces are having difficulty with this. When it comes to making sure their demand for flexibility is satisfied, the younger generation is more outspoken and assertive.

Will it be legal to turn off?

It was reported that this legislation would outlaw the practice of supervisors contacting employees on the weekends or after hours.

The government has since indicated that there will be a Code of Practice on the matter, despite the fact that a consultation was promised in October of last year and the proposal has not been included in the Bill's amendments.

According to other reports, the plan has been abandoned.

What are the implications of the Employment Rights Bill for companies?

Angela Rayner, the deputy prime minister, has called the changes the "biggest upgrade to workers' rights in a generation."

Businesses should be reassured, according to Watt, that maternity and paternity pay, as well as increased statutory sick pay, will not result in any extra expenses because they are covered by the government.

However, there are cautions that the new regulations might make employers more hesitant to hire employees.

According to Vicky Schollar, head of employment at the law firm Gardner Leader, "there is a risk that the changes will not have the desired effect of boosting levels of employment and living standards, even though they are positive for employees."

"While larger employers might be able to afford the extra expenses brought on by the changes, smaller employers will probably find it difficult to make ends meet. This, in addition to the implementation of day one rights for wrongful termination and stringent probationary period regulations, may result in a decline in hiring, which would impede the expansion of the market.

Employers run the risk of having to spend more time and money handling more claims for wrongful termination.

Months may pass before any changes are made because the Bill still needs to pass the House of Lords. Many people anticipate that the law won't be passed until 2026.