Yesterday, government published its response to four consultations on the Employment Rights Bill (ERB) which took place at the end of last year, and information on the ERB latest amendments, which were made fully available earlier today.
You can find BRC’s initial reaction here and below is a short analysis of the responses and amendments. We will continue working on a more detailed breakdown on what that means for retailers over the coming days.
The Employment Rights Bill has now entered its Report Stage and the final stages in the House of Commons have been scheduled for Tuesday 11 and Wednesday 12 March, where the amendments will be discussed and debated by MPs.
1. Consultation responses:
Guaranteed hours and agency workers:
- It was confirmed that guaranteed hours provisions will be extended to agency workers, with the end-hirer initially responsible for offering guaranteed hours for agency workers. Exceptions, where the agency should be responsible for making the offer, will be established in secondary legislation.
- Both the end hirer and the agency will have to provide reasonable notice about shift changes. Agencies will be responsible to paying workers for compensation when that happens, but they can negotiate with the hirer to recover these costs if the hirer caused the change.
Collective consultation
- Increasing the maximum period of the Protective Award from 90 to 180 days for employers in breach of their collective consultation obligations. Government will issue guidance on consultation processes for collective redundancies in due course.
- Government intends to gather further views on strengthening the collective redundancy framework in 2025.
- On interim relief, the government will not take forward the proposals i.e. interim relief will not be available to employees who bring claims.
Fire & rehire
- On interim relief, the government will not take forward the proposals i.e. interim relief will not be available to employees who bring claims.
- Intend to gather views on updating the Code of Practice on Dismissal and Re-engagement later in 2025.
Statutory Sick Pay (SSP)
- For some lower earners, including those earning below the Lower Earnings Limit, their rate of SSP will be calculated as a percentage of their earnings instead of the flat weekly rate. Government have confirmed they will set this percentage rate as 80% of normal weekly earnings, which will apply where 80% of an employee’s normal weekly earnings is less than the flat rate
Industrial relations
- Amendments will make it easier for trade unions to be recognised and access workplaces. This includes speeding up the process, protecting against unfair practices, and allowing independent unions to apply for recognition even if a non-independent union is already recognised.
- Rules to include digital access and creating a fast-track route for access agreements, with penalties for non-compliance are also being updated.
- Industrial action rules are also being simplifying, to extend the mandate period, and making balloting easier with e-balloting. These include extending the expiry of mandate for industrial action from six to 12 months, and reducing the notice period for industrial action from 14 to 10 days (as opposed to the proposed 7 days).
- Removing the 50% turnout threshold for industrial action ballots will be considered at a latter time, once e-balloting is in place.
2. Government Amendments:
Earlier today, full amendments were shared, key takeaways are below:
- Following up on significant engagement with BRC and members, the requirement for collective redundancy consultation at a single establishment has been retained, as opposed to across the businesses. A new trigger for redundancies across multiple establishments will be created in secondary legislation following up future engagement to ensure the proposals are workable for the industry.
- As for shift changes, (cancellation, moving or shortening) compensation will only be due if the worker reasonably believed they were needed for the shift. Secondary regulations will aim to clarity what “reasonable believe” is.
- Guaranteed hours might be exempt where a collective agreement is in place and contains provisions to replace the obligation to offer guaranteed hours. Additionally, provisions for workers to raise claims where they believe their rights to guaranteed hours haven’t been fulfilled have been strengthen. As it stands, employers will have to offer guaranteed hours after a reference period (“right to have”, as opposed to a “right to claim”), the reference period and the definition of low hours will be set in secondary regulations.
We look forward to hearing your feedback on the above – please contact me at luiza.gomes@brc.org.uk
