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 introduces 28 employment reforms, including the elimination of exploitative zero-hours contracts and fire-and-rehire practices. 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

A major shift is 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 a ‘right to disconnect,’ aimed at protecting workers from the pressures of remote surveillance and ensuring a healthy work-life balance.

Flexible working is set to become the default option from day one of employment, except where it is not reasonably feasible. This will be a significant change for employers, requiring adjustments to accommodate varying work patterns.

Additionally, the introduction of bereavement leave 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.

Worker protection (Amendment of Equlity 2010) Act

Expected 26 October 2024

The Equality and Human Rights Commission (EHRC) has 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 introduces 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 Equlity 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 does not specify the exact steps employers must take, allowing for flexibility in how different employers address the issue. However, all employers must take action, and no employer is exempt from the preventative duty.

Worker Protection (Amendment of Equlity 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.
Establish reporting mechanisms.
Provide training.
Respond appropriately to harassment complaints.
Address harassment by third parties.
Monitor and evaluate your actions.

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

New law on tipping workers

Regulations have been made confirming that the new tips law and Code of Practice will be in place from 1 October 2024.

Regulations have been approved by Parliament to bring The Employment (Allocation of Tips) Act 2023 and the new statutory Code of Practice on Fair and Transparent Distribution of Tips into force from 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.
The government has said that further non-statutory guidance will be published to accompany the Code of Practice so employers should keep an eye on developments.

Workers (Predictable Terms and Conditions)

The Bill Gained Royal Assent on 19 September 2023 but it is yet to be enacted. It will give workers the right to request a predictable working pattern.

The Workers (Predictable Terms and Conditions) Bill is a private members’ bill that aims to provide workers on flexible or casual contracts, including those on zero hours contracts, with more predictable working patterns.

The Act operates in a similar way to flexible working requests – a worker will be able to make two requests for predictable terms in any 12-month period and will not be able to make any other statutory applications (such as a flexible working request), while an existing application is live.

A worker’s request will need to say it’s an application for predicted working and include certain minimum information (outline what they're seeking in relation to the predictability of their working pattern and give a proposed start date). The employer will need to deal with the request within one month of the request being made.

The employer will be able to reject the request on specific business grounds, such as a detrimental impact on the employer's business, planned structural changes, or insufficient work during the periods that the worker proposes to work.

Employment Relations (Flexible Working) Act

This Act came into force on 6th April 2024 and grants 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 coming 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.
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 new regulations came into force on 6th April 2024. Prior to it’s 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 6th 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.

However, there are no transitional provisions expressly stating that employee notices given before 6 April 2024 fall outside the new rules applicable from 6 April 2024.

Therefore, it could be argued that an employer who has been ‘informed’ of an employee’s pregnancy before 6 April 2024, continues to be so ‘informed’ after that date.

ACAS advices employees to re-inform their employers after 6 April 2024 to avoid any doubt.

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

Important: The ACAS guidance on redundancy protection for pregnancy and new parents recommends this course of action.

The change in legislation has therefore been understood to mean:

If the employer is informed of the pregnancy before 6 April 2024, the employee is protected from redundancy during their period of (OML) and (AML) only, and not during their pregnancy.

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

An employee may rely on equivalent protection under the Shared Parental Leave Regulations 2014 (SI 2014/3050, reg 39), to be offered a suitable alternative vacancy if their role is made redundant during a period in which they're taking shared parental leave.

Adoption leave

Employees will now receive the same period of protection following their return from ordinary adoption leave (OAL) and additional adoption leave (AOL), providing the employee has taken at least six weeks of continuous shared leave after 6 April 2024.

The Protection from Redundancy
(Pregnancy and Family Leave) Act Part 3

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.

Paternity Leave (Bereavement) Act 2024

Royal Assent 24 May 2024

The bill aims to expand the rights of a parent's partner to shared parental leave and pay in specific circumstances if the parent passes away.

Here's what we know so far:

It will apply in situations of birth, surrogacy, and adoption.
Removes the current service requirements.
Is expected to have provisions regarding “KIT Days”.

As of June 2024, we are still awaiting the date of implementation.

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 this year, 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.

Workers (Rights and Definition) Bill

The Bill aims to protect workers against exploitation by employers using zero-hour contracts and false ‘self-employment’.

The Workers (Rights and Definition) Bill is a private members’ bill introduced by Chris Stephens of the SNP.

The aim of the bill is to relieve the current difference between ‘workers’ and ‘employees’ and introduce a single status for the purpose of employment rights and employer responsibilities. This is intended to protect workers from the vagaries of the ‘gig economy’ by regulating false ‘self-employment’ and casual employment in a simpler way. The bill is in its second reading in the Commons.

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

The legislation making provision for minimum service levels (MSL’s) during strikes came into force on 20 July 2023.

The controversial act is 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 have already been implemented for the rail and ambulance services (from 8 December 2023).
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 will be 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 will be required to take “reasonable steps” to comply.

The Worker Protection (Amendment of Equality Act 2010) Bill

Introduced by Liberal Democrat MP Wera Hobhouse as a Private Members' Bill in June 2022.

The purpose of the Bill is to protect employees from third party sexual harassment in the workplace by imposing new duties on employees.

The initial requirement for employers to take “all reasonable steps” was diluted to “reasonable steps” with amendments anticipated, but these did not come into fruition.

The Bill received Royal Assent on 26 October 2023, without amendment, and is expected to be effective from November 2024. It's therefore a good time for employers to consider preventative action for the future.

Although claims for third party harassment were not specifically added, as initially predicted, liability is still a risk. Employers need to take complaints seriously, and have clear, widely operated polices and sufficient training on those policies, to show that they have taken the “reasonable steps” required.

Proposals to reduce ill health-related job loss and “tackling the sick note culture” Part 1

Following previous proposals by the government to reduce ill health-related job loss and consultation on this subject between July and October 2023, the subject remains an important and controversial topic in the UK.

The government has introduced ‘proposals to reduce ill health-related job loss’. The consultation builds a case for employers to do more to support employees with health conditions. In return the government is committed to providing more help for employers.

These include:

A review of the fit note system to stop people being written off as “not fit for work” by designing a new system where each fit note conversation focuses on what people can do with the right support in place, rather than what they can’t do.
Shifting the responsibility for issuing the fit note away from GPs, towards specialist work and health professionals who will:

Have the time and expertise to provide an objective assessment of each individual and their ability to work and provide the bespoke support they may need.
Design a new system where people have easy and rapid access to specialised work and health support to help them back to work.

Proposals to reduce ill health-related job loss and “tackling the sick note culture” Part 2

The WorkWell pilots have been launched by the Department for Work and Pensions (DWP) and the Department for Health and Social Care (DHSC).

Their aim is to provide a single, integrated assessment and gateway into both employment support and local health services. This initiative helps individuals manage their conditions and identifies workplace adjustments or support to enable them to stay in work or return sooner.

Participation in the WorkWell pilots is voluntary, and individuals do not need to be claiming any government benefits to take part. The pilots aim to offer personalised support from a “Work and Health Coach” who will understand the participant’s current health and social barriers to work and help develop a plan to overcome these obstacles.

Additionally, the program provides advice on workplace adjustments such as flexible working or adaptive technology, facilitates conversations with employers about health needs, and offers access to local services like physiotherapy, employment advice, and counselling.

These pilots have been developed with the belief that work is an effective way to improve well-being by reducing the risk of depression, improving physical health, and building self-confidence and financial independence.