Last week, we saw an Amendment Paper to the Employment Rights Bill released setting out further proposed changes to the current employment law landscape. Going hand in hand with the Employment Rights Bill introduced this October, this paper provides welcome clarifications and introduces new changes that will undoubtedly have a large impact on the current system when these laws come into place.
Perhaps the largest change announced is the extension of the time limit for bringing all tribunal claims, including those for discrimination and unfair dismissal, from being within 3 months of the act complained of to 6 months. This change will undoubtedly see a rise in those who will be able to bring claims in a tribunal, leading to greater pressure on the already creaking system. While such a huge change has been on the cards for some time, being discussed earlier this year within Labours “Plan to Make Work Pay”, it is surprising this was not included in the initial publication of the Bill. While we are yet to see what these plans will materialise into and when these new timescales will apply, the change is one that will certainly require employers to prepare.
A further significant amendment is the changing of the definition of “initial period of employment” to fit in line with the shift to granting the day one right to unfair dismissal. Providing clarification, the amendments set out that the “initial period of employment” refers to the period between 3 and 9 months after the employee has started employment. During this period, employers will be able to dismiss individuals based on capability, conduct, statutory contravention, or some other “substantial reason”. This amendment, while still awaiting further clarification, emphasises the importance of a probationary period for new hires and should act as encouragement for employees to adapt their current work practices in line with this.
While these amendment’s add clarity to the, in some places, vague proposals, do they go far enough?
These amendments come following concern’s raised by the Regulatory Policy Committee. Looking at the impact the changes would have on employment, wages and output, the RPC provides strong criticism of the Bill, labelling it “not fit for purpose”. This is hugely concerning and raises deep worries other the effects the Bill will have on the working people and the UK economy. Looking at the Government’s own impact assessments, the RPC have said that there is a lack of “evidence to support the problem being addressed” and that “the proposals could make it more difficult for those unemployed or economically inactive to access jobs”. This is in deep contrast to Labours promise to “make work pay” and increase job security. While the amendments do not go as far to address these concerns in their entirety, they show willingness to develop the Bill and ensure that when it comes into force, concerns are mitigated and negative impacts are reduced.
With there being long time yet before the proposals come into practice, it will be interesting to see how this evolving area of law develops and what further changes are on the horizon.
In this article, we will explore 3 Common reasons for seeking legal advice for employment-related issues.
