Legal update
Employment Rights Bill: the key points
Natasha Smith, a senior associate at CooperBurnett LLP, provides an update on changes in employment law in light of the Employment Rights Bill
The Employment Rights Bill (ERB) was unveiled by the new Labour government in October 2024 and aims to strengthen workers’ rights by effecting numerous changes to employment laws, including unfair dismissal, zero-hours contracts, statutory sick pay entitlements, family friendly rights, and several other areas. There are currently 28 separate changes being proposed in the ERB, so the potential impact of the ERB on businesses cannot be underestimated.
The significant and wide-ranging changes that are being proposed under the ERB are leaving employers and business owners across all manner of industries reeling; however, this article focuses on the expected impact that some of the proposals may have on those working within the care industry.
It is important to caveat at the outset that all of the proposals are subject to consultation with various industry representatives and, as a result, no changes are expected to come into effect until at least Autumn 2026, giving employers much- needed time to review their workforce and take steps to prepare for proposed changes. There is also the chance that what
has been proposed under the ERB at this juncture will evolve as a direct result of the feedback that is being obtained from the consultation processes currently underway. Therefore, some of what is being considered now could look quite different in 12 to 18 months’ time and employers should keep the situation under review and seek legal advice on all developments.
Day one rights for unfair dismissal One of the most significant changes is the proposed introduction of day one rights for unfair dismissal claims. Currently, employees need to have worked for a business for at least two years to qualify for unfair dismissal protection, except in very limited specific circumstances where the
February 2025
www.thecarehomeenvironment.com
usual two-year time limit does not apply. This time period has varied over the
years and with differing governments, but it has never been a day one right and therefore its impact is significant and very concerning for employers. The change would mean that nearly all employees will be protected against unfair dismissal from their very first day of employment (it is expected that this will grant protection to approximately nine million more employees). This is no doubt clearly of concern to
employers who wish to have the flexibility to release a member of staff within the early stages of their role, if necessary, without fear of a potential unfair dismissal claim landing on their desk. That said, the ERB does allow for regulations to be made relaxing the requirements for a fair dismissal during an ‘initial period of employment’ (similar in nature to a probation period). The government will consult on how dismissals during this period will work in practice, but there are
Changes being proposed under the ERB are leaving employers reeling
suggestions of a nine-month (six months plus a three month extension) period where new dismissal procedures will need to be followed. If they do not already do so, employers should look to introduce probationary periods into contracts of employment for new starters or, where these are already in place, ensure that they review and amend existing clauses to ensure they provide maximum flexibility under the new rules. They should also ensure line managers are familiar with the correct process to follow during a probationary period so that the mindset of utilising this period effectively becomes the norm, as opposed to thinking they have up to two years in which to make their minds up about the suitability of an employee.
The care sector is often characterised by
weak domestic recruitment and high staff turnover, with high levels of international recruitment commonplace. With an ever- increasing aging population, demand for adult social care is only expected to expand in the future and, therefore, it is of vital importance that the industry is supported with recruitment initiatives. A worrying consequence of the removal of the two-year qualifying period could be that employers
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