As the Employment Rights Bill passed its Second Reading last week, the Government has launched a series of consultations on some of the Bill’s key provisions.

Collective Redundancy and Fire and Rehire

First is a consultation on measures to strengthen the remedies in cases of abuse of the rules on collective redundancy as well as so-called ‘fire and rehire’ practices. In the case of collective redundancy, the consultation draws attention to the phenomenon of employers who fail to comply with their legal obligations to engage in collective consultations with employees whom they intend to make redundant. Failure to comply with such obligations may result in the payment of a so-called ‘protective award’ which currently can be up to 90 full days’ pay for each affected employee. The consultation seeks views on the Government’s proposal to increase the amount of the protective award either by (a) increasing the maximum amount awarded to 180 days’ pay or (b) removing the cap on the protective award entirely and leaving it to the discretion of the employment tribunal to decide what penalty to impose on the employer. The consultation also seeks views on whether interim relief should be available to employees who bring claims for the protective award.

As for fire and rehire, the consultation seeks views on whether an employee who brings a claim for unfair dismissal under the new fire and rehire rules (if passed) should be able to make an application for interim relief. This would mean that the employee would continue to be paid during the course of their claim so long as they can show that it is likely to succeed.

To read the consultation in full, click here. It closes on 2 December 2024.

Zero Hours Contracts and Agency Workers

Second, the Government has launched a consultation on its plans under the Employment Rights Bill to “tackle one-sided flexibility in zero hours contracts through a right to guaranteed hours with a contract that reflects the number of hours regularly worked, and a right to reasonable notice of shifts with payment for shifts cancelled or curtailed at short notice”.

In particular, the consultation seeks views on how the new rules would apply to agency workers. For example, it asks whether it should be the employment agency or the end hirer who should be subject to the requirement to offer a contract for guaranteed hours to an eligible worker after a period of 12 weeks. Similarly, it considers how the new rules that entitle workers to reasonable notice of their shifts would apply to agency workers where matters are “complicated by the tripartite relationship between the agency worker, the agency, and the end hirer”. Under the Government’s proposals (on which it seeks views in the consultation), both the end hirer and the agency should be responsible for providing reasonable notice of shifts such that both would be liable to compensate the agency worker for losses suffered as a result of unreasonable notice (to the extent they are responsible for such unreasonable notice).

Finally, again noting the added complexity of an agency worker dealing with both the agency and the end hirer, the consultation seeks views on whether the agency should be responsible for paying any ‘short notice cancellation’ or ‘curtailment of shifts’ payments (as proposed under the Bill), and whether legislation should provide that these agencies should be able to recoup costs from the end hirer where it is responsible for the short notice.

To read this consultation in full, click here. It closes on 2 December 2024.

Statutory Sick Pay

In line with the Government’s commitment to strengthen Statutory Sick Pay (“SSP”), one of the provisions of the Employment Rights Bill extends the eligibility of SSP to those earning below the Lower Earnings Limit (currently £123 per week). In such cases, the rate of SSP will be calculated as a percentage of the employees’ earnings instead of being a flat weekly rate. The consultation seeks views on what this percentage should be and, whilst the Government does not propose a specific figure, the consultation includes modelling for between 60 and 80% of earnings.

The consultation closes on 4 December 2024 and can be read in full here.

Industrial Relations

Finally, the Government is consulting on its plans to create “a positive and modern framework for trade union legislation that delivers productive and constructive engagement, respects the democratic mandate of unions, and works to reset our industrial relations”. This is the most detailed of the consultations published so far, and seeks views on a range of matters including:

• simplifying the amount of information unions are required to provide in industrial action notices;
• strengthening provisions to prevent unfair practices during the trade union recognition process;
• removing the 10-year ballot requirement on political funds;
• securing a mandate for negotiation and dispute resolution;
• extending the expiry of the strike mandate;
• reducing the industrial action notice period;
• updating the law on repudiation and prior call; and
• the enforcement mechanism for right of access.

The consultation can be read in full here and it closes on 2 December 2024.

In addition to these consultations on specific parts of the Employment Rights Bill, the Public Bill Committee has also announcing a wider call for evidence on the Bill, which can be found here.