The Employment Rights Bill is edging ever closer to becoming law. And whilst we still don’t have all the details, or an exact timeframe for implementation, there are steps businesses can take to prepare themselves.
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1. Review probation periods
The Bill will bring in the right for employees to claim unfair dismissal from day-one of employment, subject to an ‘initial period of employment’, anticipated to last for nine months, where employers will be able to take a ‘lighter touch’ approach to fairly dismiss someone. It’s expected this will involve at least one meeting and resemble probation periods currently in use by employers.
Ahead of this, employers should be:
- Reviewing recruitment processes – are they finding the best candidates?
- Reviewing current probation period policies and processes, including contractual length – if the new ‘initial period of employment’ is nine months, then a six-month probation period will give the employer flexibility to extend
2. Assess plans on making changes to terms and conditions
Reforms on ‘fire and rehire’ will make dismissing an employee for failing to agree to a variation of terms automatically unfair unless limited financial criteria has been met. Businesses that anticipate needing to make any changes to their terms and conditions, for reasons other than maintaining the financial viability of the business, should consider making those changes sooner rather than later.
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3. Strengthen absence management
The removal of the three-day waiting period and the requirement to earn at least the Lower Earnings Limit to be eligible for Statutory Sick Pay (SSP) will make sickness absence more costly. Strong absence management processes will be key to mitigating this.
To prepare, employers should:
- Review their sickness policy, or create one if they don’t currently have one in place
- Ensure absence management processes are robust and followed consistently
- Review any company sick pay eligibility – if eligibility says it matches the criteria for SSP, the employee will also become eligible for company sick pay from day one of absence
4. Review how third-party harassment is managed
Currently, employers are not liable for third-party harassment, but the Bill will change that - unless they have taken all reasonable steps to prevent it. Employers should consider extending the processes they currently have under the proactive duty on sexual harassment to all types of harassment.
5. Train managers
The management of people will be key to implementing any changes because of the Bill, and also the prevention of anything going wrong. Employers should review the skill level and capabilities of their line managers and ensure they have the ability and knowledge to manage people and processes efficiently and in line with the law. From holding probation review meetings, to managing sickness absence, and dealing with harassment issues, line managers will be on the frontline of dealing with the implications of the Bill.
Remember, the Bill will also extend the time-limit for individuals to make a tribunal claim from three months to six months. This means failing to prepare and understand how the Bill will impact their business, could leave employers open to legal action against them.
