Employment and pensions

Welcome to our latest Coffee Break in which we look at the latest legal and practical developments impacting UK employers

Employment Rights Bill continues to be debated

On 28 October, the Employment Rights Bill entered the "ping pong" stage of the parliamentary process as it returned to the House of Lords to consider rejections made by the House of Commons of several of its proposed amendments.

However, the House of Lords pushed back again on a number of its proposals and the bill will now return to the House of Commons for further consideration. Primary concerns are centered around the guaranteed hours for zero- and low-hours workers and the proposed day one right to unfair dismissal.

Unfair dismissal reforms

The House of Lords expressed concern around "day one" unfair dismissal rights given the potential impact on employers and, from their perspective, the need to provide stronger safeguards. In particular, the House of Lords raised concerns on:

• Hiring impact. Peers warned that removing the qualifying period would shift hiring risk onto employers, discouraging recruitment of candidates perceived as “riskier” (such as younger workers, returners, ex offenders). Small and medium-sized enterprises, with fewer HR resources and tighter budgets, were seen as particularly exposed.
• Tribunal pressure and litigation risk. The removal of a qualifying period is likely to increase the volume of unfair dismissal, exacerbating the existing Employment Tribunal...

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