The Employment Rights Bill: increase in tribunal claim time limits and other amendments

The Employment Rights Bill 2024 (the ERB) underwent scrutiny last week during its committee stage, with several key amendments proposed that could impact employers.

It is anticipated that Government-backed amendments and those proposed by Labour MPs are more likely to be enacted. These amendments are covered below.

Increase in employment tribunal claim time limits

Whilst an extension to the time limit for bringing claims to employment tribunals was not included within the initial draft of the ERB, this change was contained within the Government’s Plan to Mark Work Pay and also the Next Steps paper published at the same time as the Bill. Therefore, its introduction is less surprising than its omission from the original draft.

The amendment proposes extending the time limit for bringing employment tribunal claims from three months to six months, aiming to provide employees with additional time to address grievances before initiating legal proceedings.

Whilst there is a risk this could lead to an increase in claims, potentially placing additional strain on the tribunal system, it may also provide additional time for parties to resolve matters outside of the tribunal system.

Compensation to be capped for claims during ‘Initial Period of Employment’

The ERB introduces a concept of an ‘initial period of employment’ concerning day-one rights against unfair dismissal.

A Government amendment will allow the Secretary of State to specify a cap on the compensatory award for employees unfairly dismissed during the initial period of employment provided for in the ERB.

Rights to guaranteed hours for zero hours and low hours workers

Clause 1 of the Bill introduces the new right for zero hours and low hours workers to be offered guaranteed hours in some circumstances. Amendments to this clause include new requirements for employers to:

• Take reasonable steps to ensure that workers are given specified information in relation to their rights to guaranteed hours during an “initial information period”.
• Give workers a notice where they consider an exception to the duty to make a guaranteed hours offer applies, or where a guaranteed hours offer that has been made is treated as having been withdrawn.

Equality action plans

Under the ERB, future regulations will require employers with 250 employees or more to develop and publish equality action plans showing what steps they are taking in relation to prescribed matters related to gender equality, and to publish prescribed information relating to their plans.

An amendment proposed by Labour MP, Gill Furniss, would require employers to include an explanation in their equality action plans on how they are supporting employees with menstrual problems.

Trade union access to workplaces

Government amendments to the ERB will require trade unions to have a certificate of independence in order to benefit from the access to workplaces provisions set out in that clause. These provisions will enable listed trade unions and employers to enter into “access agreements” for union officials to access the employer’s workplace for the purposes of meeting.

Comment

Employers should keep abreast of updates as the Bill progresses through Parliament.

The implementation of changes contained within the Bill could necessitate significant adjustments to certain aspects of employment practices, policies and procedures for most employers. Taking proactive steps to prepare for the changes will enable businesses to adapt effectively and maintain compliance with evolving employment laws.