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Employers can “breathe easier” as Employment Rights Bill paces change

Ron Davison, MD of Gamlins Law

A LEADING North Wales employer lawyer says the much-heralded Employment Rights Bill “feels more like a steady transition than a seismic shift”.

Ron Davison, Managing Director of Gamlins Law and sister company HR Anchor and an employment law specialist, says this is due mainly to many of the reforms being postponed or diluted.

He says that fulfilling the Government’s election promise to publish the Bill within 100 days of its election victory generated a time pressure that has led to unfinished business and inevitable compromises. 

Lobbying on behalf of big and small business alike appears to have forced a rowing back on some of the most impactful employee protections proposed in the government’s Make Work Pay manifesto plan to tackle low pay, poor working conditions and poor job security to help more people to stay in work. 

As a result, while some of the expected reforms make it through, many are modified, and others are noticeably absent or subject to further consultation and refinement. 

That is evident in the simultaneous publication of a companion paper to the Bill, called the Next Steps. This outlines how Labour intends to meet the election promises not yet covered by the Bill. 

Many of the requirements also depend on secondary legislation, the outcome of consultation, or codes of practice.

Ron said: “Taken together with an assurance that significant changes, such as those around unfair dismissal, will not take effect until 2026, this staged approach should offer some relief to employers, knowing that there will be no overnight change of regime. 

“The much-trailed provision for unfair dismissal rights from day one now includes a probationary period to ease employer concerns, though details are yet to be finalised. This compromise allows employers time to assess employee suitability for a role, while reassuring employees about immediate protections.”

Currently, unfair dismissal rights apply only after two years of employment. The Bill removes this qualifying period, proposing instead a streamlined dismissal process during a statutory probationary period, likely set at nine months, though this will be subject to consultation.

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One of the issues covered by the Next Steps paper is the right to disconnect — a provision aimed at protecting employees’ time away from work — which was widely expected to be contained within the Bill.  Instead, the government has promised to address it via a new code of practice, with consultation expected next year.

Another long-standing Labour commitment is the abolition of the UK’s three-tier employment framework, towards a single worker status.  This aims to expand the range of workers who qualify for employment rights, a fundamental change that could reshape the employer-employee dynamic, by merging the existing categories of ‘worker’ and ‘employee’, leaving only the status of ‘employed’ or ‘self-employed’. 

A significant proposal, designed to reduce ambiguity, this has provoked loud debate over its potential impact on business flexibility and for now, this promise has proven too complex to address within the timeframe.  But the government has confirmed its continued commitment to a single worker status model with consultation plans in the Next Steps paper.

For pregnant women and new mothers, further details are awaited, but the Bill strengthens protections against dismissal in a significant extension of current safeguards.  It will be unlawful to dismiss a woman on maternity leave, as well as for six months after her return, except in specific circumstances.

However, the Bill does not make any mention of changes to statutory maternity pay (SMP) rules. Off-record rumours had suggested these would be adjusted to allow pregnant employees to qualify for SMP if they began a job during the first six months of their pregnancy.  Currently, they will only be eligible for SMP if they become pregnant after starting their job.

Ron added: “While a raft of sweeping changes has been outlined in the Bill, and a timeline indicated for those in the Next Steps, there’s little in the way of immediate action. Instead, it’s a case of waiting to see how Parliament will shape the final version of the Bill. Notably, before the ink is even dry on this initial working, the Government has hinted that it might amend its own draft in the coming months.

“For now, employers should take account of the potential changes in their thinking and future strategy and keep their ear to the ground for further legislative changes. As the Bill moves through Parliament and consultation documents are released, the practical implications will become clearer. 

“Employers can breathe a little easier, with the Government promise of a gradual implementation, and most major changes not coming into effect until 2026.

“But the changes are substantial, and smaller businesses without dedicated specialist support will need to devote time and resources to navigate them effectively.  Ensuring positive outcomes for both employees and the business will require careful planning and support together with regular review of policies.”

Gamlins Law, which employs 85 people, has offices in Rhyl, Ruthin, Denbigh, Mold, Abergele and Holywell.

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