As the dust settles on last week’s unveiling of the Employment Rights Bill, we examine what it means in practice for employers.

It’s an early Christmas present

You could be forgiven for thinking that you need to hire a new team of people to help with the implementation of the raft of measures in the 158 pages of the Employment Rights Bill. Fear not! It is an early Christmas present from the Government, because:

• Immediate action: there is nothing to do immediately, other than thinking about where the most work is likely to be needed and drafting a list of priorities.
• Lead-in period: there is a lead-in period of approximately two years, as the earliest that measures will take effect is the autumn of 2026.
• Parliamentary process: the current draft of the Bill may look completely different once it has been through the Parliamentary process, which includes debates in both the House of Commons and the House of Lords. All of the rights and obligations are likely to remain, but the detail may change.
• Consultation with stakeholders: most of the major reforms will be subject to consultation with stakeholders, where the detail will be thrashed out and will result in modification.
• Equality (Race and Disability) Bill: this will extend pay gap reporting to include ethnicity and disability for large employers, with related equal pay rights, and will involve considerable work. While this remains a Government commitment, it appears to be one of the reforms that may take longer to finalise. The Government does say that the Bill will be published in due course, and within the term of this Parliamentary session.
• Flexibility: there is a surprising amount of flexibility baked into the Bill, though it is not obvious at first glance. Flexible working, for example, will not be the "default" that was promised. Employers will still be able to refuse requests on the same statutory grounds “where reasonable” and with an explanation.

Damp squib?

Was it all a fuss about nothing? No. There can be little doubt that this package of reforms will change workplaces. It will involve strategic thinking and much work in preparation for a new regulatory environment that will bring increased costs and a higher compliance burden. For the moment though, it is reassuring to know that there is time to consider these changes properly. In the meantime, we have updated our tables (more secure work and basic employment rights, family-friendly rights and equality, collective and trade union rights and enforcement), which provide an in-depth analysis of the changes ahead, the steps anticipated towards implementation, and action points for employers.

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