Employment Rights Bill Roadmap
The government has produced what they called a “Roadmap” for the various parts of the Employment Rights Bill.
This Bill has been a difficult one to plan for, due to two reasons. Firstly, many important parts of it are left unspecified with the gaps to be filled in by future legislation and, secondly, that it has been and continues to be subject to extensive amendment as the government consults with stakeholders. It has been described as “the mother of all moving targets”.
The good news for any readers who wish to provide feedback in the consultation is that the government is going to allow plenty of time. In addition, before bringing in some of the big changes, they are going to produce guidance and codes of practice. Once we have all that, then the path will be a lot clearer. So, when are we going to get there?
The Road Map:
This Summer
This Summer, the consultation will begin in relation to the “day 1” unfair dismissal rights for employees. The “day 1” entitlement itself will not be up for consultation, but a proposed different test of fairness which will apply where an employee is still in their “initial period of employment” will be part of it and will be of great interest, as will the length of that initial period (which will be labelled a statutory probation period). At present, it seems the government will be proposing this period to be nine months, and then it will take a final view depending on what feedback it receives.
Autumn
In the Autumn, consultation will begin on, amongst others, the practice of “fire and rehire”, regulation of umbrella companies and ending “exploitative use” of zero hours contracts.
September/October
Once the Bill receives Royal Assent, likely to be September/October 2025, then the first measures to take effect are a variety of what might be described as trade union-friendly measures. Many readers will be indifferent to topics such as the removal of a 10-year ballot requirement for trade union political funds.
April 2026
It is in April 2026 that measures of wider interest begin. These include allegations of sexual harassment being classed as “whistleblowing”, establishing the Fair Work Agency, and removing the lower earnings limit and waiting period for SSP.
October 2026
In October 2026 the “fire and rehire” limitations begin, along with the requirement for employers to take “all reasonable steps” to prevent sexual harassment of their employees and not to permit harassment by third parties. This will also be when the new 6-month time limit for bringing claims in the employment tribunals begins (up from the 3 months that it has always been).
2027
The most significant bit of news with this roadmap is that the Day 1 right for unfair dismissal and restrictions on zero hours contracts will not take effect until 2027. The normal dates for the type of additional legislation required by this Bill are 6th April and 1st October, so this means that the day 1 rights/zero hours changes will not commence until April 2027. We will come back in more detail, on all this, once the government responds to the consultation, possibly in late Autumn/Winter this year.
Summary:
Consultation periods normally last for at least 12 weeks, but there is always the ability of the government to extend this. Given the controversy over day 1 rights, it would not be a surprise if the government allows a longer period to consult over the elements we mention above and to allow the opportunity for as much feedback as possible.
The indicative timetable is something that everyone will welcome. However, the fact that draft legislation is currently with parliament, but so much of the detail is yet to be consulted on, is indicative of a government that is uncertain on how to achieve the balance between business and worker rights. As we’ve seen with the welfare reform vote, this week in parliament, nothing is certain with the current government, and therefore the detail that emerges from the consultations will be crucial.
So, in summary, a bit more time for businesses to prepare, and as the detail emerges, we’ll be on hand to advise and guide our readers through the changes.
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Disclaimer: Chartergate Legal Services Ltd has drafted this update to provide you with a general overview of the relevant law and developments at the date of sending only. This update is provided as a general overview and should be taken as such. It is not a substitute for professional advice that is specific to your circumstances and should not be relied upon as such.
