The Labour Government has introduced the Employment Rights Bill (ERB), promising wide-ranging work-related changes.
- Significant implications for the construction industry, with increased costs on the horizon due to new rights.
- Key developments include reduced qualifying periods for unfair dismissal and enhanced redundancy consultations.
- The bill proposes flexible working rights and measures against ‘fire and rehire’ practices.
- Future reforms remain uncertain, leaving the industry awaiting further developments.
The Labour Government’s Employment Rights Bill (ERB) is a significant legislative proposal aimed at transforming work conditions, having been published within the first 100 days of the party’s rise to power. This move promises to overhaul several employment norms, especially those impacting agency workers and contractors, who may soon be entitled to unfair dismissal and redundancy rights. The financial implications for construction businesses could be substantial, though the exact impact remains to be fully realised.
Central to the ERB are changes like the implementation of ‘day one’ rights for unfair dismissal, albeit subject to an ongoing consultation process. This includes a probable decrease in the current two-year qualification period to a more concise nine-month term. From the outset of employment, there will be a stipulated probationary period aimed at providing a balanced evaluation of an employee’s fit for their role.
Additionally, the ERB mandates statutory sick pay, parental, and bereavement leave available from the first day of employment. While zero-hours contracts are not outrightly outlawed, employers will be obligated to present zero-hours workers with a contract offering guaranteed hours post a designated reference period, likely set at twelve weeks, again pending consultation.
The Bill also enhances the right for all employees to request flexible working arrangements, ensuring any denial of such requests is based on reasonable grounds. For those facing redundancy, a significant shift is the move away from the singular ‘establishment’ test in favour of a broader consultation requirement for any business reducing its workforce by twenty or more employees.
Moreover, the ERB strengthens union rights, obligating employers to inform employees about their right to union membership and simplifying union access to workplaces. The proposed measures extend to effectively prohibiting ‘fire and rehire’ tactics unless an employer is verging on insolvency, thereby safeguarding employment stability.
To combat workplace harassment, the ERB increases the responsibilities of employers to prevent sexual harassment and third-party harassment. Oversight for these regulations will fall under the new Fair Work Agency, ensuring compliance and enforcement.
While several new rights are set to commence, others have been postponed with the government releasing a ‘Next Steps’ document. This outlines potential future reforms, including altering employment status frameworks and introducing a ‘right to switch off’ outside working hours. However, timelines for these changes remain undetermined.
The construction industry is poised to experience substantial effects from the alignment of worker and employee statuses. The outcome of the consultation could redefine the entitlements of agency workers and contractors, subjecting them to standard employment rights unless classified as genuinely self-employed.
The Employment Rights Bill is poised to significantly alter the employment landscape in the construction industry, though its full impact remains subject to ongoing consultations.
