Where is the Employment Rights Bill and what does it mean for the care sector?
The Employment Rights Bill (the Bill), introduced in October 2024, represents the most significant shake-up of the employment law landscape in decades and was at the heart of the Labour manifesto.
With the majority of its changes expected to take effect in 2026, amendments are still being made to the contents of the Bill (including an amendment paper published at the end of 2024) and much of the finer detail is yet to be “ironed out”.
Here’s what we know so far in terms of the key changes we expect to impact the care sector:
One of the main “headlines” of the Bill is that employees will no longer need two years’ qualifying service to bring a claim of unfair dismissal. Consultation remains ongoing in respect of a proposed lower threshold for dismissals within a period of initial employment (likely around nine months), this is still a major shift.
In the midst of difficulty surrounding international recruiting, recruitment generally is going to take on even greater significance.
The Bill also removes both the three-day waiting period for sick pay, meaning SSP is payable from day one of absence, and the lower earnings threshold, meaning more people will be entitled to sick pay.
This carries a significant financial impact for employers, meaning that more sick pay will be paid out across the board. Following the increase in NI and National Minimum Wage, this adds further budgetary considerations.
The Bill seeks to limit zero hours contracts by giving employees the right to request a “guaranteed hours” contract to reflect working patterns and provide them with more security. The Bill also now proposes to give agency workers the same rights as a means of preventing agency workers being used by businesses to avoid giving low hours workers these guaranteed rights. Businesses will have to carefully consider how they use employees and workers.
Whilst the above gives some detail about how the Bill will affect employers, there is still a lot that we simply do not know yet. As is the nature of the legislative process, the Bill is subject to potential change before it becomes law. Regardless, businesses should be planning now (as far as possible) for the coming change.
Contact Tom to discuss this further.
