Since Labour came to power they have, as promised, focused on bringing about significant reforms to employment rights. This culminated in The Employment Rights Bill, which was introduced on 10 October. Presented as a major shake-up of workers’ rights, the reforms proposed are still being worked out as it’s unclear how they will work in practice. However recently, a number of significant updates have been revealed.
Tribunal Claims
One of the amendments includes an extension of the time limit, within which employees are able to make an employment (tribunal) claim, from three to six months. This change will apply to all types of claims, including discrimination and unfair dismissal claims and brings it in line with the time limit for statutory redundance and equal pay claims.
It is widely understood that this change will increase the number of claims that are filed because employees will have longer to think and act. At this stage no one knows whether the current tribunal system will actually be able to cope with the extra claims that are anticipated.
The current tribunal system is already stretched and any delays may have a negative impact upon businesses. Some business groups think there may be a possibility that the increased time limit could reduce the number of claims because employers and employees try to resolve the matter between them. Whilst this sounds unlikely, we will have to wait to see how everything pans out.
Review. Revisit. Revise.
What is clear at this moment in time, is that every business will need to engage and consult more with employees, monitor and evaluate current procedures, revisit their HR policies, paying particular attention to everything from documentation and record-keeping to manager upskilling/training and employment contracts. There will also be a precedent for organisations to take advice sooner rather than later, particularly when it comes to effective probationary management.
Day one rights
But it’s not only tribunal claims which have been revised. Another point for further consideration is around the definition of the initial period of employment. The initial period of employment is also known as the probationary period and is usually between three and nine months. This is a period of time when an employer assesses the employee’s skills and qualifications and the employee evaluates if the position and company are a good fit for them too.
The Employment Rights Bill gave employees the right to claim unfair dismissal from their first day of employment. This removes the current two-year qualifying period for unfair dismissal protection. Whilst there is no mention of what extra protection/compensation someone in their probationary period could expect, it is thought that this, combined with the tribunal time limit extension, could lead to increased pressure on businesses to dismiss within the probationary period. This would have a significant negative impact on the employment market.
Other amendments which are currently being considered relate to gender equality plans covering menstrual health and the menopause and NDA’s and harassment. It will be interesting to see what happens with these critical issues.
Employer burden
There are still plenty of areas of the bills that need to be fleshed out, but already some employers believe that dropping so many new measures all at once leaves them scrambling to make sense of it all quickly and effectively. Furthermore, they see that these changes could reduce operational flexibility, limit scope for growth and productivity, introduce more caution surrounding recruitment and dismissals, increase costs and add a heavy administrative burden. Others however see things very differently and are positively embracing the big shake up.
Whatever the results of these momentous changes, supporters of the Bill are hopeful that the country is taking a major step forward in ensuring that all workers get the same basic right and protections at work. They feel that this should help to drive up employment standards, giving workers more predictability, security and control.
How I can help
If you are looking for tailored help and support so you are ready to embrace the raft of new changes, then please email caroline.robertson@actifhr.co.uk