The UK Government has published the first four consultations arising from the proposals set out in the Employment Rights Bill 2024/25 ("the Bill").
Statutory sick pay
A consultation has been launched on Strengthening Statutory Sick Pay ("SSP"). The proposals in the Bill as regards SSP are to remove (1) the waiting days for receipt of SSP and (2) the requirement for employees to earn at least the lower earnings level ("LEL") to be eligible for it. The current rate of SSP is £116.75 per week (this rate is reviewed annually), while the LEL is £123 per week. As some of those earning below LEL may also earn less than the SSP rate, the UK Government proposes to taper SSP for those earners, so they are entitled to a certain percentage of their average weekly earnings or the current SSP rate, whichever is the lower. It is this percentage upon which views are being sought.
Zero hours contracts measures and agency workers
The Bill introduces measures to tackle one sided flexibility that it intends to also apply to agency workers. The measures are the right to a guaranteed hours contract and the right to reasonable notice of shifts with payment for cancelled shifts or those curtailed at short notice. The consultation on the application of zero hours contracts measures to agency workers seeks views from stakeholders on how these measures might be applied to agency workers. This includes fundamental issues such as who should have responsibility for offering the guaranteed hours, the employment agency, or the end hirer.
This consultation does not cover the implementation of these two measures more generally, with the UK Government intending to consult on that separately at a later date.
Creating a modern framework for industrial action
The UK Government has acknowledged that the repeal of many of the provisions of the Trade Union Act 2016 leave the country with a legal framework that is over 30 years old. In order to allow all interested parties to contribute to policy development in this area a consultation has opened on creating a modern framework for industrial relations. The consultation seeks views on "building a modern, positive industrial relations framework" around principles of collaboration, proportionality, accountability and "balancing the interests of workers, businesses and the wider public". With reference to that aim, views are sought on the following areas: -
- Unfair Practices during Trade Union Recognition Processes
- Political Funds
- Simplifying Industrial Action Ballots
- Expiry of Mandate for Industrial Action
- Updating the Law on Repudiation
- Clarifying the Law on Prior Call
- Rights of Access
The Government describes the Bill and this consultation as "first steps" towards modernising the legislation that underpins trade union law. It intends to consult further on modernising the trade union landscape following the Bill receiving Royal Assent (probably in around mid-2025) on admissibility requirements for statutory recognition ballots, union access to workplaces and greater rights and protections for union representatives and members.
Collective redundancy and fire and rehire
The final consultation seeks views on strengthening remedies against abuse of rules on collective redundancy and fire and rehire. In relation to collective redundancy, the government is seeking views on the proposal to increase the maximum period of the protective award that a tribunal can award. A protective award may be made where an employer has failed to properly comply with collective consultation requirements and is currently capped at 90 days gross pay per employee. Two options are under consideration: -
- Increasing the current cap to 180 days gross pay per employee; or
- Removing the cap entirely
Views are also sought on whether interim relief should be available to employees' bringing claims for protective awards or for employees bringing claims of unfair dismissal arising from fire and rehire practices. Interim relief is where an employment tribunal, at an early stage in the proceedings, orders that an employer must continue to pay salary to a dismissed employee pending a hearing and a final judgment.
Next steps
The consultation on statutory sick pay closes on 4 December, and the other three close slightly earlier on 2 December. After they close the UK Government will consider the responses, with their own response then published "in due course".
