What is the purpose of the Employment Rights Bill?
The Bill aims to enhance worker protections, modernise workplace regulations, and promote fair employment practices in the UK.
Its main purposes include strengthening employee rights, ensuring fair pay and benefits, supporting work-life balance and empowering workers and trade unions.
The Employment Rights Bill 2024 was a set of reforms to employment laws that was introduced to the UK Parliament in October 2024, and there have been recent amendments to the Bill.
Buried within the last amendment paper are crucial updates that could reshape workplace litigation - introducing new enforcement powers for a newly established Fair Work Agency.
What is changing?
For years, many employers have relied on the fact that employees might hesitate to bring claims due to legal costs, fear of retaliation, or lack of awareness of their rights. However, the Fair Work Agency is set to change that by stepping in to enforce employment rights directly.
Key changes include:
Bringing tribunal claims on behalf of workers
The Agency will now have the power to pursue claims - even if the worker does not personally wish to bring one. This means employers may no longer be able to rely on an employee’s reluctance to take legal action.
Providing legal assistance to workers
The Fair Work Agency will be able to offer legal support for employment cases, making it easier for workers to challenge unlawful treatment. If the case is successful, the employer may even be required to cover the Agency’s costs.
Recovering unpaid holiday and sick pay - plus additional penalties
The Agency will have the authority to reclaim unpaid holiday pay and statutory sick pay for workers. But that’s not all - employers who fail to comply may face financial penalties on top, which will go directly to the government.
A fundamental shift in employment litigation
These changes mark a major turning point in employment law. Previously, many disputes went unchallenged because employees lacked the time, resources, or confidence to pursue legal action. Now, with the Fair Work Agency stepping in, claims could surge - bringing significant risks for businesses that don’t comply with employment law.
How can employers prepare?
With the increased risk of enforcement action, proactive compliance is more important than ever. Employers should:
- Review employment contracts and policies to ensure compliance with holiday pay, sick pay, and working conditions.
- Strengthen HR procedures to prevent disputes before they arise.
- Stay updated on the Bill’s progress and prepare for its implementation.
An overview of the changes, and notable amendments include:
An extended tribunal claim timeframe. The period for initiating employment tribunal claims has been extended from three to six months, allowing individuals more time to address workplace disputes.
Enhanced legal Support. The Fair Work Agency is empowered to provide legal assistance to workers in employment disputes, with the potential to recover costs from employers if the claim is successful.
Agency enforcement powers. The Fair Work Agency can now pursue employers for unpaid holiday and sick pay, imposing financial penalties that are directed to the government.
Flexible working as default. Employers are required to consider flexible working requests from the commencement of employment, promoting work-life balance.
Regulation of zero-hours contracts. The bill introduces measures to regulate zero-hours contracts, ensuring fair treatment and predictable working patterns for affected employees.
Ban on 'fire-and-rehire' practices. Employers are prohibited from dismissing and rehiring staff on less favourable terms, safeguarding existing employment conditions.
Enhanced protections for pregnant workers. Pregnant employees receive extended protections against redundancy, aiming to reduce discrimination and job insecurity.
Support for trade unions. The legislation strengthens the role of trade unions in workplaces, promoting collective bargaining and worker representation.
How can Coles Miller help?
At Coles Miller, we understand the complexities of employment law and how new regulations can impact businesses. Our experienced employment law specialists can help you:
- Conduct a full compliance audit to identify potential risks in your employment contracts and policies.
- Advise on best practices for handling employee disputes, reducing the risk of claims.
- Provide expert representation should you face an employment tribunal or Fair Work Agency investigation.
- Train your HR team to ensure they are up to date with the latest employment law requirements.
By acting now, businesses can reduce the risk of enforcement action and protect themselves from costly legal battles.
