How HR teams need to navigate the new Employment Rights Bill

When the new Government came into power on July 5th, they announced they would introduce an Employment Bill within their first 100 days. While many employees, and employers, welcome some of these changes, it creates extra work and understanding for HR departments.

A busy time for HR

The announcements lead to changes in what has already been a busy time of flux for HR teams with new policies to support changes to carer's leave and flexible working regulations.

The bill will be voted on in the House of Commons within the next year. With its aims to stop ‘exploitative’ working practices, HR professionals and company legal teams are now considering how any changes will impact their business should they pass into law in the coming year(s).

A day-one right: Unfair dismissal

For HR teams, one main part of the Employment Rights Bill is the expansion of employment protections. The removal of the current two-year qualifying period to claim is perhaps one of the most radical changes under the Employment Rights Bill.

Employees will be protected from being dismissed without due cause in the first weeks of their employment.  It might force some hiring managers to think more carefully about who they recruit or HR teams to implement more stringent assessment and interview procedures.

Employers will still be protected as they can hire new employees under a probation period.

HR could decide to make use of longer probationary periods to offset the impact of the higher protection for unfair dismissal.

Line managers can continue to use probationary periods to assess new hires. For underperforming new starters, there are still ways you can terminate their contract of employment – the new bill means you’ll need a good reason for that dismissal.

Parental leave

The King's Speech announced that parental leave, which has one year's service, would be a day-one right under the new Employment Rights Bill. Bereavement leave may also be subject to updates from the government to make it more accessible and provide a clear statutory entitlement for all workers.

Fire and rehire

The government has pledged to reform the practice of fire and rehire with a code of practice.  A new statutory Code of Practice on ‘dismissal and re-engagement’, came into effect on the 18th of July. The new code gives courts and employment tribunals the ability to increase employees' compensation by 25% if the employer does not comply with best practices. HR teams are now encouraged to engage in discussion with employees when changing the terms of their contracts and to consult trade unions.

Collective grievances

The government's intention to introduce collective grievances should be on the radar of HR. ACAS rules are intended to stay the same but include the ability to raise a collective grievance. An introduction of a Single Enforcement Body, or Fair Work Agency, is likely to be part of the plan.

Collective redundancies

HR departments that have multiple sites will need to have a system in place to keep track of planned redundancies (including voluntary redundancies) across the whole organisation. Without a tracking system in place, there will be no way of knowing if the collective redundancy requirements are triggered which could have financial implications.

Flexible working

Flexible working will be a day-one right of employment for all workers, with employers required to accommodate this ‘as far as reasonable.’ HR can only reject a request with good cause, meaning a flexible working pattern or location would hurt business operations. If you do reject them, you’ll need to explain the reason in person and writing.

Apprenticeships Levy

The  Government has outlined its plans to reform the Apprenticeships Levy with a flexible Growth and Skills Levy. This enables businesses to use up to 50% of their levy contributions for funding staff training through routes other than apprenticeships.

The right to switch-off

The Government intends to facilitate constructive conversations between businesses and employees on the right to switch off. It’s been suggested that this will follow similar models to those in Ireland or Belgium.

Pay reporting

The King’s Speech mentioned new equality legislation and a draft equality (race and disability) bill will be introduced.  Claimants will be able to bring equal pay claims based on race or disability pay disparity/differences in contract terms. There will be mandatory ethnicity and disability pay reporting.  HR departments in organisations with over 250 staff need to consider how they collect and process ethnicity and disability data and how this might need to become a mandatory reporting requirement. Unlike gender data, ethnicity and disability data are not always volunteered by staff.

Planning is key

While plans are in development, HR departments can re-evaluate the current contracts. The quieter summer months can be an opportunity to carry out an audit-type to see which policies may benefit from revisions. They can use this time to engage in conversation or conduct anonymous polls with employees to understand what their challenges are.

Review recruitment and hiring practices

HR teams now need to review and upgrade their recruitment practices to ensure good hiring decisions. This might include extra assessments, panel interviews, and personality tests, to ensure, as far as possible, that you are recruiting people who are right for the job and are a good fit for your organisation.

Partnering with a specialist recruitment agency such as Meraki Talent for hiring professionals can assist with screening and background checks as well as assisting with company fit.

Communicating and implementing changes

HR will need to be at the forefront of any proposed legislative changes. They will be instrumental in communicating with employees and stakeholders about any incoming changes. As every business operates differently, HR will need to look at the impact of the proposed changes on their organisation and consider if they need to hire more HR professionals.