The Employment Rights Bill: What Founders and SMEs really need to know

by Gill Bell – HR | Leadership | DEI
posted 10/10/24

The UK Employment Rights Bill introduces significant changes that will impact businesses of all sizes. For many larger organisations this will be covered by HR, but if you don’t have a HR team or dedicated supported are you prepared? Understanding these changes is critical to ensuring compliance and managing employees effectively.

What is Changing?

The Employment Rights Bill is designed to modernise employment laws and offer more protection to workers, particularly in areas such as:

Flexible Working Rights: The Bill will make flexible working the default position, meaning all employees will have the right to request flexible working from day one of employment. Employers will need to consider such requests more quickly.
Pay Transparency: Companies may be required to include pay scales in job adverts and provide transparency about wage disparities, especially concerning gender.
Zero-Hours Contracts: There are new provisions aimed at giving more stability to workers on zero-hours contracts, including the right to request a more predictable working pattern.
Family Leave Rights: Changes around parental leave, particularly offering greater protections for employees taking time off for family reasons, like childcare and caring for relatives.

When is it Changing?

The exact timeline for the Employment Rights Bill is still under discussion, but businesses should anticipate the changes coming into force over the next 12 to 24 months. It’s essential to stay updated, as parts of the Bill may be phased in, and some elements could become law sooner, especially around flexible working and zero-hours contracts.

What Do You Need to Do Right Now?

If you don’t have dedicated HR support, here are the steps you need to take to prepare:

Review Your Interview Processes: Ensure that your interview processes are robust and you hiring managers are informed to ensure they reflect the upcoming legal changes and result in a quality hire. Consider whether questions about flexible working, pay transparency, or contract terms need to be updated. You should also make sure you’re compliant with non-discrimination guidelines and transparent about working conditions.
Ensure That Your Probation Process is Robust: The bill removes the 2-year qualifying period for protection from unfair dismissal. As protections for workers increase, having a clear, well-documented probation process will be more important than ever. Ensure that the process includes clear performance metrics and that managers are trained to handle probation reviews fairly and in line with legal requirements.
Review Policies: Ensure that policies reflect the new provisions, particularly around flexible working rights and pay transparency and sick pay.
Audit Pay Practices: Start conducting an internal audit on pay disparities. Transparency will be key, and businesses may need to be proactive in demonstrating fairness in wages.
Assess Workforce Management: Evaluate the use of zero-hours contracts and consider if offering more predictable hours can align with your operational needs while ensuring compliance with upcoming changes.
Prepare for Increased Requests: With the likelihood of more flexible working requests, it’s wise to develop a system for managing these requests efficiently, including how to balance them with business needs.

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Gill is an experienced HR and commercial leader and Executive Coach.

After holding senior HR roles at EMI and The Sanctuary Group, she transitioned into HR and Business Strategy consulting before joining Handle in 2012.

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