The UK’s Business and Trade Committee (BTC) has initiated a call for evidence regarding the new Employment Rights Bill (ERB). The Bill is set to bring in the most significant reform and enhancement of workers’ rights in decades.
The inquiry, entitled “Make Work Pay: Employment Rights Bill,” forms part of the government’s stakeholder engagement efforts, focusing on three key areas: protecting workers, business impact, and economic growth.
The BTC is now inviting contributions from employers, workers and other stakeholders, to help shape the final provisions of the ERB.
Scope of the BTC Inquiry
The ERB includes several significant changes, such as:
a. Banning zero-hours contracts to enhance job security.
b. Ending ‘fire and rehire’ practices, which involve dismissing staff to rehire them on less favorable terms.
c. Introducing day-one rights for parental leave, sick pay, and protection from unfair dismissal.
d. Strengthening statutory sick pay and making flexible working the default option from the start of employment.
e. Improving protections for pregnant women, new mothers, and individuals facing sexual harassment at work.
f. Establishing a new Single Enforcement Body (Fair Work Agency) to ensure compliance.
g. Introducing Fair Pay Agreements for sectors like adult social care and reinstating the School Support Staff Negotiating Body.
h. Upgrading trade union legislation to better facilitate collective bargaining and protect workers’ rights.Inquiry Focus Areas
The BTC inquiry is structured around the following themes to assess the Bill’s potential impact:
1. Protecting Workers
a. Will the Bill adequately protect workers, especially those in vulnerable positions?
b. Are there potential loopholes that could be exploited, and are any critical areas of employment law overlooked?
c. How effective will enforcement be, particularly concerning the establishment of the Fair Work Agency?
d. Could proposed trade union reforms enhance productivity and workplace harmony?
2. Impact on Businesses
a. How will the ERB influence small, medium, and large enterprises, particularly in hiring practices, staff retention, wages, and probation periods?
b. Could the new rights, such as day-one protections and flexible working, deter businesses from hiring or investing in the UK?
c. To what extent might these reforms push businesses to offshore jobs to countries with lower labour standards?
3. Economic Growth and Wealth Creation
a. What impact will the ERB and the broader “Plan to Make Work Pay” have on economic growth, productivity, and investment rates?
b. How will it affect business start-up rates, the labor supply, and overall employment levels?
c. What measures can the government, businesses, and workers take to balance the protection of rights while enhancing productivity?
How to Contribute to the Inquiry
In light of the potential breadth and depth of impact of the ERB on hiring practices, employee relations and compliance costs, employers are being encouraged to actively participate in the consultation process to ensure their perspectives are considered.
Submissions can be made through the BTC’s online portal at: https://committees.parliament.uk/call-for-evidence/3448
The deadline for written evidence is Friday 6 December 2024.
Need Assistance?
The Employment Rights Bill is set to precipitate the most extensive reform of UK employment law in recent years. As implementation is expected to follow over the course of the coming 18 months, employers should be proactive in staying informed of developments and reviewing their current practices in preparation for the changes as they come through.
Contact our experts for specialist guidance and advice.
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals
