Yesterday (Tuesday 4 March), the Government tabled amendments to the bill.
This followed lengthy weeks of consultation and responses from specific business groups, trade unions and wider civil society.
According to the Government website, these new amendments aim to show its commitment to working in partnership with businesses and trade unions, overall improving employee working conditions and seeing a positive change in workplace productivity.
These changes are all being considered with hopes of creating ideal conditions for economic growth.
Responses to five consultations, which range from zero-hours contracts to statutory sick pay are set to be published in the bill.
These new amendments will deliver on Labour’s Plan for Change, specific milestones outlined by the party, that they hope to hit by the end of their parliament.
The Bill’s impact assessment, which was published last year, showed that many of the policies within the Employment Rights Bill could help support the Government’s Mission for Growth.
Issues outlined
The issues outlined in the bill include low pay, poorer working conditions and job security.
We are turning the tide
Deputy Prime Minister Angela Rayner
Deputy Prime Minister Angela Rayner said: “For too long millions of workers have been forced to face insecure, low paid and irregular work, while our economy is blighted by low growth and low productivity.
“We are turning the tide – with the biggest upgrade to workers’ rights in a generation, boosting living standards and bringing with it an upgrade to our growth prospects and the reforms our economy so desperately needs.”
“We have been working closely with businesses and workers to progress this landmark bill and deliver our Plan for Change - unleashing growth and making work pay for everyone.”
Business secretary Jonathan Reynolds said: “Past Governments’ low growth and low productivity economy simply did not deliver what the UK needs, which is why we are choosing stability, investment and reform, not chaos, austerity and decline.
“This is why our mission to grow the economy as part of our Plan for Change is based on putting more money in working people’s pockets by making wages fairer and work more secure.
“Many businesses already have worker friendly practices in place and can attest to the positive impact they have on retention, productivity and job satisfaction.
“We want to go further and untap the UK’s full potential by attracting the best talent and giving business the confidence to hire to help the economy grow.”
New Government consultations
According to the Government website, these new amendments have come from responses received to five Government consultations:
•Application of zero hours contracts measures to agency workers
All workers, including up to 900,000 agency workers within the UK, should be able to access a contract which reflects the hours in which they regularly work.
These amendments are set to ensure agency work does not end up as a loophole in plans to end exploitative zero hours contracts.
The changes also aim to offer increased security for working people to receive reasonable notice of shifts and proportionate pay when shifts are either cancelled, or moved at short notice.
This is all while retaining the required flexibility for employers in how they manage their workforces.
•Strengthening remedies against abuse of rules on collective redundancy
The Government will increase the maximum period of the protective award from a total of 90 days to 180 days and also issue further guidance for employers on the consultation processes for collective redundancies.
If an employer fails to meet consultation requirements, the increased maximum value of the award means an employment tribunal will be able to grant larger awards to employees.
•Creating a modern framework for industrial relations
According to their website, the Government is also updating the legislative framework in which trade unions operate, in order to align it with modern work practices.
•Strengthening statutory sick pay
The Government claims it will also ensure statutory sick pay is available to those in need. For the first time, this will make it a legal right for all workers.
Up to 1.3m employees on low wages unable to work due to sickness, the new guidelines will mean employees are set to receive either 80% their average weekly earnings, or the current rate of statutory sick pay.
The Government claims they are also ensuring employees have a right to statutory sick pay from the first day of their sickness absence.
These changes aim to reduce the volumes of people going to work when ill and therefore spreading infections in the workplace. The Government hopes this will ultimately boost productivity and benefit businesses.
•Tackling non-compliance in the umbrella company market
The Government aims to ensure workers can access comparable rights and protections when working through an umbrella company as they would if taken on by a recruitment agency.
Apparent enforcement action can be taken against any umbrella companies which do not comply.
As well as creating more protections for people in the work place, the Government website describes aims of creating a more modern economy which works for both businesses and workers.
It reads: “We are delivering these reforms collaboratively, pragmatically, and in a reasonable timeframe where businesses can prepare.”
The website listed two policies, both which aim to help promote fairer working:
The Fair Work Agency, which will take strong action against specific employers that may exploit their workers, and will provide better support to the majority of businesses who have hopes of doing right by staff.
The Government website details that they will continue to hold extensive engagement as they develop their other scheme, Plan to Make Work Pay the details of both polices are still being developed.
Industry responses
In response to the Make Work pay scheme, a British Beer & Pub association (BBPA) spokesperson said: “While there are some welcome announcements, there remain legitimate concerns around many aspects of the bill.
It must be done in a way that doesn’t damage jobs
“Mandating those who may want flexible roles have to be offered fixed hours, including agency staff, will mean businesses affected by seasonal demand won’t always be able to offer them work.
“This will cut off opportunities for many who may want short-term work and deny them the chance to work as they please in a sector they’re interested in.”
Touching on how the trade body aims to work with the Government, the spokesperson added: “The beer and pub sector supports more than a million jobs and we’ll continue to work with Government to ensure that new rules don’t inadvertently penalise our fantastic workforce and risk undermining growth.”
UKHospitality chief executive Kate Nicholls warned the objectives shouldn’t damage growth, jobs and businesses.
She said: “The business world has fundamentally changed since the publication of the Employment Rights Bill, with significant increases to employer NICs upending the finances of hospitality businesses. Everything must now be viewed in that context.
“We understand the Government’s objectives with this legislation, but how it achieves those goals must be done in a way that doesn’t damage jobs, businesses and growth.”
Touching on potential issues with the new changes, she added: “Some of the changes announced offer practical clarifications on how new regulations will work, but it’s still the case that there is much unknown about how this legislation will work in practice, a lack of detail on several key issues and the scale of the cost these changes will bring.”
“With substantial consultation still to come on major parts of the legislation, it’s critical that the Government continues to work with us to answer these questions and get the detail right in a way that benefits both businesses and team members.”