“Significant changes” to employment law expected, AOP says

Legal changes affecting business owners and those who employ staff could be announced in the very near future, the AOP has advised.

The King’s Speech, which took place on 17 July, saw the Government commit to introducing a new deal for working people, in order to ban ‘exploitative’ practices and enhance employment rights.

To this end, the Labour Party is expected to introduce its Employment Rights Bill within its first 100 days in office.

This could mean “significant changes to employment law,” the AOP’s head of employment, Liz Stephenson, said.

The AOP has emphasised that it will keep members up to date with any changes that are confirmed.

In the interim, Stephenson has urged any members who have questions on employment law to contact the AOP’s employment team.

What could the Employment Rights Bill include?

The key employment law measure announced in the King’s Speech is the Employment Rights Bill, which will be introduced within the first 100 days of the new Government taking office. It applies to Great Britain only.

It is expected to include provisions to ban ‘exploitative’ zero-hour contracts, ensuring workers have a right to a contract that reflects the number of hours they regularly work and that all workers get reasonable notice of any changes in shifts, with proportionate compensation for any shifts cancelled or curtailed.

The King’s Speech briefing notes state that this aims to end the one-sided flexibility in such contracts.

It is also expected to end the practice of ‘fire and rehire,’ by reforming the law to provide effective remedies and replacing the previous Government’s statutory Code of Practice.

Parental leave, sick pay, protection from unfair dismissal and the ability to request flexible working are likely to become ‘day one’ rights. Employers will be required to accommodate flexible working requests as far as is reasonable.

Statutory sick pay is likely to be strengthened, through the removal of the lower earnings limit and the current three-day waiting period.

Protections for new mothers are also likely to be bolstered, by making it unlawful to dismiss a woman who has had a baby for six months after her return to work, except in specific circumstances.

A new Single Enforcement Body, also known as a Fair Work Agency, is also expected to be created, in order to strengthen enforcement of workplace rights.

Should employers be aware of any other legal changes?

In addition to the Employment Rights Bill, it is expected that the Equality (Race and Disability) Bill will enshrine in law the full right to equal pay for ethnic minorities and disabled people.

It will also introduce mandatory ethnicity and disability pay reporting for employers with more than 250 employees, to help close the ethnicity and disability pay gaps.

The Bill will mirror measures included in the Equality Act 2010 that relate to equal pay and gender pay reporting.

Stephenson has noted that “it remains to be seen exactly how these changes will be worded.”

The AOP will keep members updated in this regard, she said.

Read the full statement on the AOP website here.