The proposed Employment Rights Bill brings significant changes for businesses, impacting recruitment, probation, and potential financial liabilities.
Our first comment of course is DO NOT PANIC! We haven’t seen even the basics of what legislation is going to include and have no understanding of the timing of implementation. This latter is really important as with 40 bills announced, around 4 billion 😊 of lawyer time to draft the legislation for that number of bills (assuming they do it properly) nothing really is likely to come our way in the short term. Our best current guestimate is some smaller measures may be introduced April 2025 with more complex legislation perhaps coming in a year behind but will keep you updated on that.
Here’s a breakdown of the key points and how to prepare:
Increased employee rights
Day one protection: Employees will gain immediate rights from day one, including protection against unfair dismissal (previously required two years), sick pay, parental leave, and redundancy pay. This necessitates a more robust safety net from the outset.
Unfair dismissal claims: Removing the two-year qualifying period means employees can challenge dismissal at any point, potentially leading to more claims and quicker legal action.
Potential higher costs: Statutory caps on unfair dismissal compensation might be lifted, exposing businesses to potentially higher financial settlements.
Managing the changes
Clearly, we need to see the detail of the legislation and we will keep you up to date with that but our initial thoughts are as follows:
Strengthen recruitment: Implement a rigorous recruitment process with multi-stage interviews, thorough assessments, and background checks to ensure a good cultural fit and strong candidates. This minimises the risks associated with day-one unfair dismissal protections.
Effective onboarding: A well-structured induction program is crucial. New hires need a clear understanding of company culture, policies, and performance expectations. This fosters smoother integration, improves performance, and boosts retention.
Supportive probation: Develop a clear probation policy with defined performance targets, regular feedback mechanisms, and support structures. Consistent performance evaluations and prompt issue resolution ensure employees are given a fair chance to succeed while allowing you to make informed decisions about their suitability during the critical initial months.
Looking ahead
While the exact implementation timeline is unclear, the bill signifies a shift towards stronger employee rights. Businesses should be proactive by adapting their recruitment, induction, and probation practices to mitigate potential risks and ensure a smooth transition under the new legal landscape.
By taking these steps, businesses can navigate the changes effectively and minimise disruption.
How Jaluch can help
Are you unsure what this will mean for your business? If you have any questions or concerns about what you need to do to prepare for these legal updates, we’re here to help.
Speak to one of the team: call us on 01425 479888 or send us an email.
📩 If you liked this article and want more, sign-up to receive free fortnightly updates from us.
Disclaimer: The information contained within this article is for general guidance only and represents our understanding of employment and associated law and employee relations issues as at the date of publication. Jaluch Limited, or any of its directors or employees, cannot be held responsible for any action or inaction taken in reliance upon the contents. Specific advice should be sought on all individual matters.