The Government has released a 53-page Amendment Paper to the Employment Rights Bill, introducing key changes and clarifications to what was already a highly ambitious piece of legislation.
These updates address critical issues, refine some of the more complex provisions, and lay the groundwork for significant shifts in employment law.
Here’s an in-depth look at the most notable proposals:
Government-Proposed Amendments
🔹 Extension of Tribunal Claim Time Limits Perhaps the most striking amendment is the proposal to extend the time limit for bringing tribunal claims from 3 months to 6 months. This change would give employees and workers significantly more time to pursue claims, offering greater flexibility but also increasing the risk of claims for employers. Surprisingly, this fundamental change was absent from the original Bill.
🔹 Clarifying the 'Initial Period of Employment' For unfair dismissal to become a day-one right, the “initial period of employment” must now be defined. The amendment stipulates this period will be between 3 and 9 months, with the exact duration to be set out in future regulations. This clarity provides businesses with a clearer framework but leaves room for further regulatory developments that could impact operational planning.
🔹 Guaranteed Hours While changes have been made to the guaranteed hours provisions, these do not appear to simplify their application. The complex structure of these rules remains a challenge, and the amendments fail to streamline the existing framework.
🔹 Short-Notice Shift Cancellations Employers may face stricter scrutiny over short-notice shift cancellations, but tribunals will now have discretion on whether to award compensation and, if so, the amount. The payment will be assessed based on the “seriousness of the matter,” introducing an element of flexibility but potentially creating uncertainty for both employers and employees.
🔹 Recognition of Menstrual Health in Gender Equality Plans Menstrual problems and disorders are now explicitly included in the definition of “matters related to gender equality.” Under separate regulations, employers may be required to produce action plans addressing these issues, further emphasising the need for inclusive workplace policies.
🔹 Trade Union Access Exclusions The amendment clarifies that the right of trade unions to access workplaces does not extend to premises that double as private residences. This provides relief to employers in certain sectors, particularly for businesses operating out of home environments.
Proposals by Other Politicians
🔸 NDAs and Harassment A newly proposed clause would render any non-disclosure agreement (NDA) void if it attempts to prevent a worker from disclosing information about harassment, including sexual harassment. This change would strengthen protections for workers, particularly in addressing workplace misconduct.
🔸 Banning Substitution Clauses Another amendment seeks to prohibit the use of substitution clauses in employment, worker, or dependent contractor agreements. This could have major implications for employment status cases, especially in gig-economy disputes, by restricting flexibility for employers relying on these clauses to classify individuals as self-employed.
A Legislative Overhaul in Progress
The Employment Rights Bill, drafted within the Government’s first 100 days, reflects its ambitious scope, but this haste has led to inconsistencies and gaps in the original draft. These amendments—though extensive—represent an effort to address those shortcomings before the Bill becomes law, preventing more disruptive revisions further down the line.
While many of the changes focus on long-standing employee protections and tribunal processes, there is still much to be clarified. For employers, this Bill, if passed, will likely require adjustments to contracts, policies, and workplace practices.
Looking Ahead
The Employment Rights Bill is shaping up to be one of the most impactful pieces of employment legislation in years.
Whether these amendments strike the right balance between protecting workers and supporting businesses remains to be seen.
