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Just seven weeks after the 158-page Employment Rights Bill was introduced into Parliament, the House of Commons issued a 53-page paper full of various proposed amendments to the Bill.

Almost all of them are government led, made by Justin Madders, Parliamentary Under Secretary of State (Department for Business and Trade). We consider below some of the key amendments proposed by Mr Madders and other Labour MPs.

Increase in employment tribunal limitation periods

The most significant of the amendments is the introduction of a change to the time limit to all types of employment tribunal claims, increasing it from three to six months.

This was a topic of discussion for the previous government, in particular in respect of discrimination claims where potential claimants may be prevented from bringing a claim within three months because, for example, they have had a baby or are recovering from ill health.

The disadvantage for employers is that such a change is likely to create more uncertainty given the longer period to wait to see whether a claim will be brought and the fact that more claims would be allowed to proceed through the tribunal system. Adding on the length of the ACAS Early Conciliation process, it would be possible for claims to be brought almost eight and a half months after the event. Given the tribunal system is already overstretched, it could also lead to delay in hearings taking place, impacting witness evidence where memories fade or witnesses change jobs, making it more difficult for employers to defend claims.

If time limits are extended, there will be even more incentive for employers to ensure processes and procedures are carried out carefully and detailed notes are kept helping support witness evidence should a claim be brought in the tribunal.

Right to guaranteed hours for zero hours and low hours workers

Substantial government amendments have also been put forward to clause 1 of the Bill, which introduces the new right for zero hours and low hours workers to be offered guaranteed hours in some circumstances. These include new requirements for employers to:

• take reasonable steps to ensure that workers are given specified information in relation to their rights to guaranteed hours during an initial information period, including all workers who it is reasonable to consider could potentially be qualifying workers in any reference period. The information obligations would be extensive and start very early on in the employment relationship;
• send a notice to workers where the employer considers an exception to the duty to make a guaranteed hours offer applies, or where a guaranteed hours offer that has been made is treated as having been withdrawn.

The provisions around zero hours and low hours workers are complex and employers will need to put in place processes to ensure the requisite steps are taken to comply with these provisions. It may be that employers who rely heavily on such workers will reassess the structure of their workforce and look for other ways to meet their requirements.

The government has also consulted on how the rules should apply to agency workers, with the consultation period having just closed. It is likely, therefore, that further amendments to these provisions in the Bill will be needed.

Other proposals

Some other amendments have also been proposed but will have less impact on employers. These include:

• trade union access to workplaces: Amendments to clause 46 of the Bill would require trade unions to have a certificate of independence to benefit from the access to workplaces provisions set out in that clause. The definition of workplace would also be amended to clarify that it does not include any part of a workplace used as a dwelling.
• Statutory Sick Pay: A further amendment would extend the Statutory Sick Pay provisions set out in clauses 8 and 9 of the Bill to Northern Ireland.
• equality action plans: An amendment to require employers to include an explanation in their equality action plans on how they are supporting employees with menstrual problems and menstrual disorders
• initial period of employment: An amendment to allow the Secretary of State to specify a cap on the compensatory award for employees unfairly dismissed during the initial period of employment provided for in the Bill. This implies that the government may be steering towards lower compensation for unfair dismissals early in employment.

Next steps

The Public Bill Committee will consider all of the proposed amendments in the forthcoming weeks, although it is likely that the government amendments will be passed. Further amendments are also likely to be tabled in the next few weeks as responses to the four consultations launched by the government are published. The Public Bill Committee is expected to report to the House of Commons by 21 January 2025.

 

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