Bills & proposals

What's coming?

The new government and their HR pledges to you

On 10 October 2024, the government unveiled the Employment Rights Bill aimed at enhancing economic security and growth for businesses, workers, and communities across the UK.

This bill introduced 28 employment reforms, including strict rules and procedures around zero-hours contracts and fire-and-rehire practices, seen to mean that both may be a thing of the past. It also establishes day-one rights for paternity, parental, and bereavement leave for millions of workers.

Additionally, statutory sick pay will be strengthened by removing the lower earnings limit for all workers and eliminating the waiting period before sick pay begins.

The following slides will provide a brief overview of these proposals. However, it’s important to note that these are still proposals, and the government has yet to provide details on the implementation timeline and enforcement mechanisms for these new rights.

The new government and their HR pledges to you

Ensuring fair pay and compensation

The government plans to abolish age bandings for the National Minimum Wage (NMW) and enforce NMW laws that include compensation for travel time.

In the adult social care sector, the introduction of Fair Pay Agreements aims to standardise wages, ensuring that all workers receive equitable pay.

Additionally, certain unpaid internships are set to be banned, reflecting a commitment to fair labour practices across all sectors.

The new government and their HR pledges to you

Strengthening worker rights and flexibility

Although the bill has repealed the previously awaited Workers (Predictable Terms and Conditions) Bill, a major shift is still proposed in the realm of zero-hours contracts, with measures to ban ‘one-sided’ flexibility. Workers on zero-hours contracts will gain the right to a regular contract that reflects the hours they’ve actually worked, alongside compensation for cancelled shifts.

Furthermore, self-employed individuals may soon have the right to a written contract, enhancing their legal protections.

Enhancing worker autonomy and work-life balance

The government is also proposing, via a seperate code of practice, a ‘right to disconnect,’ aimed at protecting workers from the pressures of remote surveillance and ensuring a healthy work-life balance.

The right to request flexible working is already in place from day one, requiring employers to handle requests in a "reasonable manner." However, under the new legislation, flexible working will become the default option unless it is not reasonably feasible.

Employers will not only need to follow a reasonable process but must also reach a reasonable decision. While the eight existing reasons for refusing a request remain unchanged, employers will now be required to explain their decision. Failing to provide an explanation could lead to claims that the request was "unreasonably refused."

Additionally, the introduction of bereavement leave for all and the exploration of paid carer’s leave underline a commitment to supporting employees through personal challenges.

The new government and their HR pledges to you

Promoting equality and safety in the workplace

A strong emphasis has been placed on creating safe and inclusive workplaces. Employers will be required to ensure their workplaces are free from harassment, with new liabilities introduced for third-party harassment.

Large firms (with more than 250 employees) will also need to develop Menopause Action Plans and publish ethnicity and disability pay gaps, promoting greater transparency and accountability.

Furthermore, simplifying the enforcement of equal pay laws aims to close gender and other pay gaps more effectively.

The new government and their HR pledges to you

Protecting employment rights and enhancing legal protections

In a bid to strengthen employee protections, the government intends to remove qualifying periods for unfair dismissal, sick pay, and parental leave, making these rights more universally accessible.

Additional measures include reinforcing protections for pregnant workers, whistle-blowers, and those involved in redundancy or TUPE processes.

The government also plans to eliminate the current distinction between employees and workers, simplifying the legal landscape.

New enforcement mechanisms will be introduced to combat unfair practices like fire and rehire, and union recognition processes will be streamlined, with increased protections for trade union representatives.

Extending legal timeframes and supporting worker wellbeing

Finally, the government is looking to extend the time limit for bringing Employment Tribunal claims to six months, providing workers with more time to seek justice.

There is also a renewed focus on supporting the long-term physical and mental wellbeing of workers, recognising the vital role that employers play in fostering a healthy workforce.

What's happened since the Employment Rights Bill?

Since its initial release as a 153-page document, the Employment Rights Bill has seen an additional 53 pages of amendments.

Opinions differ on why this has occurred:

Some suggest the focus was on passing the bill within 100 days rather than refining its details.
Others believe these amendments provide necessary clarifications and specifics.

Key changes of interest

Extended time limits for all tribunal claims: The time limit for raising a tribunal claim will increase from 3 months to 6 months for all claims.
Definition of the ‘initial period of employment’: The "day one" right for unfair dismissal will apply to an employment period of 3 to 9 months, with exact details to be defined in future regulations.
Provisions for workers without guaranteed hours: New rules clarify payments for shifts cancelled, moved, or reduced at short notice. Tribunals will have discretion over awards based on the seriousness of the situation.
Extending the definition of “matters related to gender equality”: The definition now includes menstrual problems and disorders. Employers may be required to create equality action plans under separate regulations.
Trade union access to workplaces: This right is clarified as not applying to workplaces that are also dwellings.
Non-Disclosure Agreements (NDAs): A proposed clause would render NDAs null and void if they prevent workers from disclosing harassment, including sexual harassment.

£240 million towards the biggest reforms in 50 years

Following the unveiling of the Employment Rights Bill in October, the government reinforced its commitment to "make work pay" with the release of the Get Britain Working White Paper on 26 November 2024.

Described as the most significant reform in a generation, the plan commits £240 million to achieving an ambitious target: an 80% employment rate.

With over 9 million people in the UK economically inactive – 2.8 million of them due to long-term sickness – and growing concerns about unemployment and health issues among 18-24-year-olds, the need for drastic action is clear.

Key initiatives of the £240 million investment

Transforming Jobcentres (£55 million): Creating a new national service focused on skills and career coaching rather than benefits.
Fixing the NHS: Reducing waiting lists by employing more staff in critical areas, prioritising preventative care, and improving access to mental health support.
Growth and skills levy (£40 million): Revamping the Apprenticeship Levy to deliver a “Youth Guarantee,” ensuring every young person has access to training and education to develop essential skills for work.
Youth "trailblazer" areas (£45 million): Targeting regions with high economic inactivity by funding initiatives to identify at-risk individuals and connect them with opportunities to prevent unemployment and education dropouts.
Employing and retaining people with disabilities: Collaborating with employers to create financial independence for individuals with disabilities and reduce the growing benefits bill.
Modernising DWP services (£55 million): Investing in testing and digital design to make services more accessible and bring them online.

Worker Protection (Amendment of Equality 2010) Act

This Act came into effect in October 2024

The Equality and Human Rights Commission (EHRC) issued technical guidance for employers following the enactment of the Worker Protection (Amendment of Equality Act 2010) Act, effective from 26 October 2024.

This Act introduced a new legal duty for employers to take reasonable steps to prevent sexual harassment of their workers, known as the ‘preventative duty’. Previously, there was no proactive legal obligation for employers to prevent sexual harassment at work.

Given the significant impact sexual harassment can have on an individual’s career, mental, and physical health, it was found that employers were not adequately addressing these concerns. The updated law is a welcome addition in the fight against sexual harassment.

Worker Protection (Amendment of Equality 2010) Act

The Act also allows for increased compensation in sexual harassment claims.

If an employment tribunal finds that a worker has been sexually harassed, it must consider whether the preventative duty was met. If not, the employer can be ordered to pay up to an additional 25% in compensation.

The legislation also empowers the EHRC to take enforcement action against organisations that fail to take reasonable steps to prevent sexual harassment, regardless of whether an incident has occurred.

The law doesn't outline specific steps that employers must take, allowing for flexibility in how each organisation addresses the issue. However, recent guidance highlights the importance of conducting a risk assessment and reinforces that all employers are obligated to take action – no organisation is exempt from this preventative duty.

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Worker Protection (Amendment of Equality 2010) Act

The following practical steps illustrate actions you can take to prevent and address sexual harassment in the workplace.

While not exhaustive, implementing these steps can help you take positive action:

Develop an effective anti-harassment policy. Contact our Moorepay Consultancy team for assistance.
Engage your staff.
Assess and mitigate risks in your workplace by conducting risk assessments.
Establish reporting mechanisms, ensuring all employees are aware of, and feel comfortable using them.
Provide regular training to all, including management training on how to deal with complaints of sexual harassment.
Respond appropriately to harassment complaints and investigate thoroughly.
Address harassment by third parties.
Monitor and evaluate your actions.

The new guidelines emphasise preventing sexual harassment from any perpetrator, whether a colleague or a third-party contractor.

New law on tipping workers

The new Tips Law and Code of Practice came into effect on 1 October 2024.

The new statutory Code of Practice on Fair and Transparent Distribution of Tips came into force on 1 October 2024.
This means that from this date, all qualifying tips will need to be fairly allocated to staff, including agency workers.
The Act provides that employers are required to have a written tipping policy when qualifying tips are paid at or are attributable to a place of business on more than an occasional and exceptional basis.
Affected employers will need to set out how tips are accepted, how tips are allocated and distributed and what steps the employer takes to ensure that tips are handled fairly and transparently.
A statutory Code of Practice was published on 29 July 2024, enabling workers to apply to an Employment Tribunal if they believe their rights have been breached. Tribunals are required to take the Code into account.
The Employment Rights Bill requires employers to maintain a written tipping policy, consult with workers when creating or updating it, and review the policy at least once every three years.

Employment Relations (Flexible Working) Act

This Act came into force on 6th April 2024 and granted further flexibility to employees making flexible working requests.

Following the changes in law, every employee now has the right to make a flexible working request from their first day of employment.
Employees can make two flexible working requests within a 12-month period. Previously they could only make one request.
Mandatory consultation between the employer and the employee making the request will be required and ACAS has revised its Code of Practice following a recent consultation. The new code was released alongside the law that came into force on 6 April 2024.
Employers must make a decision and respond to flexible working requests within 2 months (whereas previously it was 3 months).
Employees are not required to explain the impact (if any) that granting their request would have on the business. However, as mentioned previously, these will need to be explained/justified in the future according to the Employment Rights Bill proposals.
The statutory reasons for rejecting a request will remain.
The right to flexible working requests extends to employed agency workers (with the required service) returning from a period of ordinary parental leave under the Maternity and Paternity Leave Regulations.

Although no right of appeal was afforded, employers are strongly recommended to allow one if a request is rejected. This should be dealt with by a more senior member of staff, with no prior involvement in the process.

Carer's Leave Bill

Who can take Carer's Leave?

The Carer’s Leave Act enables employees to take up to one week’s leave annually, in whole or half days, to provide or arrange care for a dependent.

The right extends to care for a spouse, partner, child or parent, or other dependent who needs care because of a disability, old age, or any injury or illness likely to require at least three months of care, who lives in the same household as the carer and/or reasonably relies on them for care. The leave is a first-day employment right, with no qualifying period, and is unpaid.

The regulations came into force on 6 April 2024. Prior to its enactment, employers were encouraged to consider whether they wish to offer any rights in addition to this statutory minimum and generally prepare to communicate to their employees.

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Latest update

The Carer’s Leave Act received Royal Assent on 24 May 2023.

The Protection from Redundancy
(Pregnancy and Family Leave) Act Part 1

The Act came into force on 6 April 2024 and extends the previous period of protection against redundancy to six months following their return to work.

Previously, pregnant employees had a wide range of additional rights, under various legislation, with varying periods of protection under each.

Amongst such protection, employees on maternity leave, adoption leave, or shared parental leave had the right to be offered a suitable alternative vacancy, if available, before being made redundant.

They had priority over other redundant employees in relation to such vacancies.

For employees on maternity leave, this right ran from the commencement of their maternity leave, throughout their ordinary maternity leave (OML), until the end of the additional maternity leave period (AML), regardless of when they returned.

The Act has extended this protection:

For any employee who returns / has returned from maternity leave, on or after, 6 April 2024, to six months after the end of maternity leave.
For any employee informing their employer of their pregnancy on or after 6 April 2024. They will be protected during their pregnancy and for six months after the end of maternity leave, providing almost two years of protection.

Stillbirth and miscarriage

Protection is extended for employees who have a miscarriage – the protected period begins when the employee tells the employer that they are pregnant.
If an employee has a miscarriage within the first 24 weeks of pregnancy, the redundancy protected period remains as two weeks from the end of the pregnancy.
If a child is stillborn after 24 weeks of pregnancy, the redundancy protected period is now extended to 18 months from the date of the birth/six months after the AML period.

Shared parental leave

Under the Shared Parental Leave Regulations 2014 (SI 2014/3050, reg 39), employees are entitled to equivalent protection when their role is made redundant during a period of shared parental leave. This includes being offered a suitable alternative vacancy, provided they have taken at least six weeks of continuous shared leave after 6 April 2024.

Adoption leave

Employees will now receive the same period of protection following their return from ordinary adoption leave (OAL) and additional adoption leave (AOL).

The Protection from Redundancy
(Pregnancy and Family Leave) Act Part 2

Neonatal Care (Leave and Pay) Act

Gained Royal Assent on 24 May 2023

The Neonatal Care (Leave and Pay) Act 2023 creates a statutory right for parents whose child is receiving neonatal care to take paid leave of up to 12 weeks. It applies where a baby receives neonatal care for more than 7 days in a row in the first 28 days of life.

During neonatal care leave, it’s expected to be the case that eligible employees will:

Retain the benefit of their terms and conditions of employment (excluding remuneration) which would have been applied if it wasn't for the absence, and remain bound by any obligations arising from the same.
Retain the right to return to a job of a prescribed kind and enjoy the same protection as that afforded to parents exercising other family friendly entitlements (i.e. not to be subject to a detriment or discrimination arising from them taking, or seeking to take, neonatal care leave). The notice requirements are yet to be determined.

‘Neonatal Care’ is considered to mean medical or palliative care starting before the end of 28 days beginning the day after the date of the child’s birth.

Secondary legislation is needed here, and implementation is not predicted until April 2025. It’s expected that such criteria will mirror the conditions in place for other family-friendly entitlements, with neonatal pay aligning with other statutory payments for employees with 26 weeks service.

New occupations and proposed changes to UK ISL (immigration salary list) Part 1

Following the government’s five-point plan to reduce immigration and “crack down on cut-priced labour from overseas,” announced December 2023, several significant changes have been implemented.

Effective from April 2024, the plan includes:

Ending the 20% salary discount for shortage occupations.
Replacing the shortage occupations list with a new immigration salary list.
Increasing the earning threshold for skilled worker visas from £26,200 to £38,700.
Health and care workers, and professions like teachers with national pay scales, remain exempt from the increased salary thresholds. However, care workers can no longer bring family members on dependent health and care visas, and care firms sponsoring visas must be regulated by the Care Quality Commission.
Raising the minimum salary threshold for a family visa from £18,600 to £38,700.

New occupations and proposed changes to UK ISL (immigration salary list) Part 2

Despite the government’s intent to attract talent, these changes have raised concerns among businesses.

The higher recruitment costs now equate the costs of recruiting from the EU to those from elsewhere, impacting smaller businesses and sectors with lower pay scales, such as hospitality and care.

Universities have also reported difficulties in offering competitive salaries within their set bands, potentially leading to fewer qualified professionals in specialised roles.

Healthcare and tech sectors are worried about the removal of roles from the Shortage Occupation List, which could make it harder to recruit skilled workers.

Concerns have been further highlighted by the recent withdrawal of job offers by firms like KPMG, HSBC, and Deloitte.

The impact of government schemes designed to get people back into work, such as boot camps for fast-track training in areas like HGV driving, care, and hospitality, remains to be seen.

Strikes (Minimum Service Levels) Bill
(Strikes Act 2023)

Legislation establishing minimum service levels (MSLs) during strikes came into force on 20 July 2023. While it's to be repealed by the Employment rights Bill (confirmed on 6 August 2024), it currently remains in place.

The controversial act was intended to dilute the impact of a strike in targeted sectors by imposing requirements on workers and their unions to keep services in those sectors operational during a strike. It restricts the protection provided to trade unions and employees in respect of strikes if minimum service levels apply.
A statutory Code of Practice on reasonable steps came into effect on 8 December 2023.
Minimum service levels were implemented for the rail and ambulance services.
The Secretary of State can, and may, make regulations specifying minimum levels for other services, including other transport and health services, fire and rescue services, education services and border security.

What's required by the act?

Following notification from a union of a strike, employers are required to consult with the union regarding what minimum service levels should be, prior to giving work notices seven days before the strike.
The work notice must state which employees will be required and what work will need to be carried out during the strike.
The union is then required to take “reasonable steps” to comply.

Despite these requirements, this legislation has not been utilised. Angela Rayner justified the decision to repeal it by calling it 'pointless' and noting that it failed to resolve a single strike. The Social Secretary claimed that meaningful engagement has been more successful, citing the resolution with the BMA junior doctors as an example.