A number of responses have now been published covering:
- The application of zero hours contracts measures to agency workers
- Collective redundancy and fire and rehire
- Creating a modern framework for industrial relations
- Strengthening Statutory Sick Pay
- Tackling non-compliance in the umbrella company market
Here is a summary of the key amendments set out in the Government's consultation outcome responses:
The application of zero hours contracts measures to agency workers
In a stated commitment to addressing one-sided flexibility and ensuring all workers can access a contract which reflects the hours they regularly work the Government has tabled amendments to the Bill which would allow:
- The implementation of an obligation on end hirers to offer guaranteed hours to qualifying workers. Where work is genuinely temporary, employers/hirers will be able to offer temporary contracts.
- Responsibility to be placed on both the employment agency and the end hirer for providing an agency worker with reasonable notice of shifts.
- Responsibility to be placed on employment agencies to pay short notice cancellation or curtailment payments to eligible agency workers. Employment agencies and hirers will be able to negotiate between them whether to allow for the recovery of short notice payments. The Government will make provision for pre-existing arrangements which will allow agencies to recoup these costs from the hirer to reflect the hirer's responsibility for cancelling, moving or curtailing the shift at short notice. This provision will only apply where the arrangement between the employment agency and the hirer was entered into before a date two months after the Bill is passed and where it has not been modified by them since.
Collective redundancy and fire and rehire
The Government believes that there remains a need to ensure that employers do not find it financially advantageous to deliberately ignore their legal and moral obligations. Recognising there was a mixed response, the Government nevertheless is increasing the maximum period of the protective award to 180 days (rather than the current 90 days). Employment tribunals will continue to have discretion to vary the length of the protected period, up to a maximum of 180 days, as they consider just and equitable in all the circumstances, having regard to the seriousness of the employer’s actions, as well as any mitigating factors.
The Government will issue further guidance for employers on consultation processes for collective redundancies.
The proposal to introduce interim relief where employees bring claims against their employer for the protective award or who make claims for unfair dismissal in a fire and rehire situation will not be taken forward.
Creating a modern framework for industrial relations
The consultation response highlights that in recent years trade union legislation has presented a significant barrier to effective, positive industrial relations in the UK. The Government asserts its commitment to resetting and modernising the industrial relations framework.
According to the consultation response the Government will strengthen the voice of working people by:
- Improving the process and transparency around trade union recognition, including streamlining the recognition process and strengthening protections against unfair practices.
- Extending access provisions to cover digital access and by ensuring processes are proportionate and effective by introducing a fast-track route for achieving an access agreement.
- Abolishing the ten-year requirement for unions to ballot their members on the maintenance of a political fund.
- Simplifying the current information requirements on industrial action ballots and notice to employers and ensuring trade unions provide a ten day notice period for industrial action.
- Delivering e-balloting which the Government anticipate will increase participation in statutory ballots and enable the demonstration of clear mandates.
- Extending the expiry of a trade union's mandate for industrial action from six to 12 months.
Strengthening Statutory Sick Pay ("SSP")
The Government is committed to ensuring the safety net of sick pay is available to those who need it the most. The Bill removes the waiting period for SSP and extends eligibility to those earning below the Lower Earnings Limit. The Government consultation response confirms that employees will receive either 80% of their average weekly earnings or the current rate of SSP, whichever is lower. Employers can of course offer enhanced sick pay above the minimum requirement. One of the goals of the bolstered rights is to discourage employees from attending work when sick and thereby spreading infectious diseases.
Tackling non-compliance in the umbrella market
The previous government launched a consultation on tackling non-compliance in the umbrella company market. Amendments have been tabled to the Bill to allow umbrella companies to be regulated for the purposes of employment rights. Under a "next steps" heading in the consultation response the Government has confirmed its aim to ensure that workers get comparable rights and protections when working through an umbrella company as they would when taken on directly by an employment business.
Comment
The recent amendments to the Bill demonstrate the Government's clear aim of bolstering workers' rights. Whilst the Government has made some concessions for employers in response to the concerns raised in consultation, these proposals will still have a significant impact and it remains to be seen how this will impact the job market. It is essential for employers to keep up-to-date with the latest changes and to take the opportunity to align business planning with the cultural shift in worker protection. As always, particularly in times of significant change, employee engagement is absolutely key. Employers which are able to collaborate with their workforce will inevitably find it easier to navigate the ongoing changes.
We will be providing a practical update on the latest developments in our Employment Law Update Webinar at 12 noon on 31 March 2025. We hope you can join us.
