The long awaited and much heralded Employment Rights Bill continues to work its way through the applicable parliamentary procedures. B P Collins’ employment team explains the latest developments and what this could mean for employers and workers as the legislation edges closer to becoming law.
Day one unfair dismissal rights, due to come into force in 2027, have been widely discussed in both the media and within employers’ organisations, with employer groups worrying that they would be forced to reconsider hiring decisions.
The Employment Rights Bill also introduced a new concept called an ‘initial period of employment’, likely nine months, during which employers could dismiss staff using a simpler process. The aim was to seek to balance fairness for employees with flexibility for employers. The Government planned to consult on the rules for this lighter-touch process over the next year.
In an interesting update the House of Lords has voted to remove the initial period entirely. Instead, they have amended the Employment Rights Bill to reduce the qualifying period for unfair dismissal from two years to six months. Arguably such a removal reduces uncertainty for employers and reduces the changes to existing legislation. It also could reduce the burden on ACAS and Tribunals.
In accordance with parliamentary procedures the Employment Rights Bill will now return to the House of Commons. It is likely that the Government will probably reject the Lords’ amendment, using its majority to restore the original proposal and then the House of Lords must then decide whether to push back (which would be incredibly rare under constitutional traditions) or allow the Bill to pass as the Government initially intended.
B P Collins’ employment team will continue to provide updates on the Employment Rights Bill over the coming months. If you need any further advice on this Bill or any other employment matter, please email enquiries@bpcollins.co.uk or call 01753 889995.
