Employment Rights Bill update

Yesterday, the Employment Rights Bill passed its 3rd reading in the House of Lords. That is a formality, so no surprises there.Next, the Bill goes back to the House of Commons, which will discuss and vote on the various amendments made by the House of Lords.  

It can accept them (in which case, they become law), or reject them (in which case, the Bill goes back to the House of Lords, which will almost certainly back down).  With a substantial majority, it’s pretty much up to the government whether to accept the amendments or not.

The main amendments are as follows:-

• ban on dismissal and re-engagement:  the House of Lords watered down this proposal significantly.  Rather than making (almost) all ‘fire and rehire’ dismissals unlawful, the amended Bill bans ‘fire and rehire’ dismissals where the proposed contract changes relate to pay, pension, hours of work, or holiday entitlement (and some other minor things).  But where the proposed changes relate to something else, any dismissal for refusing to agree to the changes can still be fair as long as the employer has been extra-reasonable (my words), by following a six point checklist which includes things like extensive consultation and, where appropriate, offering inducements.Comment: This will be undoubtedly be accepted by the House of Commons and will become law, as it was a government-backed amendment in the House of Lords in the first place.

  
  

• the obligation to offer guaranteed hours to zero-hour workers: the House of Lords amended this to an obligation to give guaranteed hours to zero hour works only if they ask for it, rather than irrespective of whether they ask for it or not.

  
  

• day one unfair dismissal: an amendment to the Bill means that there will be a six month period with no unfair dismissal rights (other than for automatic unfair reasons), followed by an 18 month ‘initial period of employment’ with the light-touch unfair dismissal rules in place.Comment: this will be rejected and the government will stick with ‘day one’ unfair dismissal. It is its headline employment reform, and there is no way the government will back down in my opinion.