New timeline for Employment Rights Bill – what it means for you

The Labour Government swept to power last year and one of the primary subjects in their manifesto was the protection of workers’ rights. Two of the headline changes were to be changes to zero hours contracts and also ‘Day 1’ unfair dismissal rights.

Consultation was launched very quickly, and the intended implementation was headlined to be 2026. The announcement now following the publication of the implementation roadmap has given confirmation that the implementation of these rights will be delayed.

Labour has announced that there will be further consultation on the proposals and businesses are complaining that the eventual implementation will lead to a wave of disruptive changes.

It is clear that there are concerns about the implementation. The Government has decided that a phased implementation will balance meaningful worker protections with the practical realities of running a business, creating more productive workplaces where both employers and employees can thrive. Union bosses state that these changes are long overdue and that 2027 must be an absolute backstop.

Considering the reality of the situation in practical terms, there have historically been pieces of worker protection legislation that have had delayed implementation to allow for businesses to adapt to the changes. The best example is the Equal Pay Act 1970. This was not implemented until 1975 as the thought of women being paid the same as men was revolutionary.

Let’s look at the two matters proposed and the concerns faced by businesses. Zero hours contracts are now a regular occurrence in the employment field. Many businesses are reliant on this type of arrangement to meet their customer demand (or lack of it). Many workers enjoy the flexibility of working when they want, with flexible hours. The restriction of this arrangement will need careful practical consideration as to how these employers and employees will continue to benefit each other.

Similarly, we will need to know how the implementation of Day 1 unfair dismissal rights will operate when most if all employers operate a probationary period in order to address the removal of unsuitable candidates being hired. There will inevitably be the introduction of some form of statutory procedure to address the conflict between the two positions. The delay will enable this to be considered fully and a procedure adopted that will be to the benefit of both sides

Based upon the turmoil created by the amendments to the welfare legislation witnessed, it is really important that these steps are carefully considered and the outcome crafted in a way that avoids the employment relationship being subject to further arguments about another policy not being properly considered an implemented. Otherwise, further confusion and conflict will inevitably appear.