Progress of the Employment Rights Bill

MILS’ members with an eye on the news will have noted the progress of the Employment Rights Bill through Parliament.  We have covered potential future changes to employment law in previous updates and will continue to keep you posted.

The Government has now tabled a number of amendments to the Employment Rights Bill as part of its responses to consultation.  Of note, are the following: –

• It is now intended that agency workers will be granted the right to be offered guaranteed hours by the end user. 
  
  The ERB contains measures to tackle one sided flexibility in zero-hours contracts, introducing a right to guaranteed hours reflecting the hours worked during a reference period (anticipated to be 12 weeks).  The Government has now confirmed that it is tabling amendments to include agency workers.  Notably the obligation to offer guaranteed hours will rest with the end user (i.e. the employer) of worker’s services.  It is proposed that both the end user and the agency will be responsible for providing an agency worker of reasonable notice of shifts, shift cancellations, and changes to shifts.  It is proposed that agencies will be responsible for making payments to workers which result from short notice cancellations, movements, or curtailments of a shift. 
• The Government is also bringing forward an amendment to the Bill to double the maximum period of the protective award of failing to adhere to collective consultation.  This is going to increase from 90 days to 180 days.  It is also tabling a number of amendments concerning trade unions and industrial relations.  These are quite technical but effectively strengthens the trade union’s position in respect of strikes, ballots, and recognition, in addition to collective bargaining. 

• The Bill contains provisions for making all employees eligible for statutory sick pay (SSP) by removing the lower earnings limit.  However, the Bill now allows for earners to be paid less than the statutory rate.  The Government has now confirmed in response to the consultations that employees will receive either 80% of their average weekly earnings or the current rate of SSP, whichever is lower, and the Bill has been amended accordingly.

• Finally, in a slightly more obscure but important development the Government has further revealed the powers for their new “Fair Work Agency”.  This agency will have powers to bring Employment Tribunal claims on behalf of workers, even if they don’t want to pursue litigation themselves and the Government will give it powers to pursue employers for unpaid sick and holiday pay.  It can also impose fines on employers and there is a further provision to provide legal assistance for employees with Employment Tribunal cases.
  
  It is presently unclear how draconian this new agency will be, but it is significant that there may now be an organisation that can pursue claims against employers, even if the employees do not do so.