Uncover the proposed amendments to the Employment Rights Bill
After seven weeks of consultations and discussions, the Government has this week tabled a 53-page Amendment Paper to its landmark Employment Rights Bill (we have summarised the Bill here). The proposed amendments are wide ranging, with some significant reforms hidden amongst other more standard administrative changes. Whilst most of the proposals have been put forward by the Employment Rights Minister, Justin Madders, there are also contributions from several non-Labour MPs. It is unlikely that any of those opposition-led amendments will pass into law, but they certainly provide a useful indication of the perceived shortcomings of the Bill as it currently stands. By contrast, there is a strong likelihood that most, if not all, of Labour’s own proposals will pass into law.
Of those proposals, the headline amendment is the extension of the time limit for bringing claims in the Employment Tribunal. The limit has been stretched from 3 months to 6 months for all Tribunal Claims, giving employees much more time to enforce claims against their employers. Though significant, this amendment is not altogether surprising. It was included as one of several commitments in Labour’s Plan to Make Work Pay earlier this year, and it builds upon the general employee-friendly stance that Labour appears to have taken in recent months.
At this stage, it is not quite clear what impact the extended time limit will have. On the one hand, it could give prospective claimants more time to pursue a resolution with their employer outside of the Tribunal. On the other hand, it could open claims to a whole raft of employees who would have otherwise fallen foul of the relatively tight three-month deadline. If the latter does prove to be the case, then it will be interesting to see how the already-strained Tribunals deal with an even more demanding case load.
We have summarised some of the other significant proposals in the Amendment Paper below.
1. Initial period of employment
The Amendment Paper specifies that the ‘initial period of employment’ referred to in the Bill will be between three to nine months. The Government intends to pass secondary legislation in respect of this ‘probationary’ period, lessening the obligations on employers when making dismissals during that time. This amendment directly relates to the Bill’s proposal to give employees protection from unfair dismissal from day one of their employment.
2. Changes to guaranteed hours
There have been a number of minor changes to guaranteed hours contracts for workers, including rules on payments to workers when their shifts are moved, cancelled, or curtailed.
3. “Gender equality” definition
Under the Employment Rights Bill, the Government can produce secondary legislation requiring employers to create equality actions plans to promote gender equality. To that end, the Amendment Paper has extended the definition of “gender equality” to include menstrual problems and menstrual disorders.
4. Non-disclosure agreements
The Liberal Democrat MP Layla Moran has proposed a clause which will render as void any non-disclosure agreement that purports to prevent workers from disclosing any type of harassment, including sexual harassment.
5. Prohibition on ‘substitution clauses’
The Conservative MP Nick Timothy has proposed a clause which will prohibit the use of ‘substitution clauses’ in agreements between employers and employees, workers, or dependant contractors.
It now remains for the Public Bill Committee to debate the Bill, as amended, over the next two months. The Committee will hear evidence from a number of academics, industries, and trade unions during that time, with a view to reaching a conclusion on the Bill on 25 January 2025.
