The House of Commons has rejected all of the non-government amendments to the Employment Rights Bill that were agreed by the House of Lords at Report Stage.
The Lord’s proposed amendments which have been rejected include:
- Replacing the day-one right to claim unfair dismissal with a six-month qualifying period.
- Altering the requirement for employers to offer a guaranteed hours contract to zero-hour, low hour, and agency workers, making it a right for workers to request one.
- Defining “short notice” in the provisions on compensation for shift changes and cancellations for zero-hour, low hour, and agency workers at less than 48 hours.
- Expanding on who can accompany a worker at disciplinary and grievance hearings to include a “certified professional companion”.
- Extending whistleblowing protections and placing a requirement on large employers to investigate protected disclosures.
- Softening the proposed trade union reforms on industrial action ballots and political fund contributions.
Kate Palmer, Employment Services Director at Peninsula, says, “As the Commons has rejected the Lords’ amendments, the Bill will now make its way back to Lords again, potentially entering a ‘ping pong’ phase.
“Understandably, this continued lack of clarity is likely to be extremely frustrating for many employers who just want to know what changes are coming under the Employment Rights Bill, and when. With some of the changes expected to be implemented shortly after Royal Assent, it’s concerning that at this late stage we are still unsure about what some major reforms included in the bill will look like.
“Employers cannot simply adapt to these changes overnight; they will need time to devise and implement new policies and procedures in alignment with the reforms. Currently, almost half the businesses we surveyed have not started to plan for the implementation of the Bill, with only 12% stating that they feel ‘very prepared’. And it’s no real surprise that so many are feeling unprepared given the lack of solid information coming out of government.
“With the Times reporting that the reforms and the recent increases to National Insurance contributions will cost businesses an additional £954 for every worker hired and an expected rise in employment tribunal claims being brought once these changes come into law, the Employment Rights Bill has increased the pressure on businesses, particularly small businesses, who are already struggling with rising costs. Therefore, it’s more important than ever for businesses to ensure they are across all potential changes, updating policies and contracts as needed to ensure they remain fully compliant, so it is essential that businesses receive some clarity sooner rather than later.”