The Employment Rights Bill that is currently going through parliament will introduce radical reforms to UK employment law, including unfair dismissal rights for all employees, restrictions on restructuring exercises, increased trade union access, guaranteed hours of work for zero-hours workers, and new employee rights to leave.
In this update we look at the impact of the main changes on companies with employees in the UK.
| Area of change | Impact |
| Unfair dismissal | All employees will have unfair dismissal rights from the first day of their employment (compared with after two years’ employment which is the current position). This is likely to result in:
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| Companies that have or develop:
are more likely to be able to mitigate the effects of this change. | |
| Good/Bad Leaver arrangements eg in Articles of Association, LTIP or option schemes, or contracts of employment, should be reviewed. The changes to the law will make it less desirable to base Leaver categorisation on the issue of whether termination of employment has been unfair. | |
| A modified unfair dismissal regime may... |
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