Author: Nina Francis

A new era for Worker’s Rights:

Posted on by Nina Francis

Understanding the Employment Rights Bill

The UK government has introduced what it calls the biggest upgrade to employment rights in a generation. The Employment Rights Bill, unveiled in October 2024, promises sweeping changes that will fundamentally reshape the relationship between employers and employees across the country. The main focus points are as follows:-

Protection from Day One

Perhaps the most significant change for workers is the removal of the two-year qualifying period for unfair dismissal claims. Under the new legislation, it is proposed that employees will have the right to challenge unfair dismissal from their very first day at work. While employers will still be able to use a statutory probation period to assess new hires, this change marks a substantial shift in the balance of power, particularly for those in precarious employment situations.

The bill also tackles the controversial practice of ‘fire and rehire,’ where employers dismiss staff and rehire them on worse terms. These dismissals will be considered automatically unfair unless businesses can demonstrate they genuinely had no alternative.

An End to Exploitative Zero-Hours Contracts

For the millions of workers on zero-hours contracts, relief is on the horizon. The bill introduces rights to guaranteed hours based on regular working patterns, reasonable notice of shift changes, and crucially, payments when shifts are cancelled at short notice. These measures aim to provide a baseline of security for workers who have long faced one-sided flexibility that benefits only employers.

Strengthened Sick Pay and Family Leave

The reforms to Statutory Sick Pay remove both the lower earnings limit and the waiting period, meaning workers will receive sick pay from day one regardless of their salary level. This change will particularly benefit lower-paid workers who have historically been excluded from statutory sick pay protection.

Family-friendly provisions receive a significant boost too. Paternity leave and unpaid parental leave will become day-one rights, while new mothers will enjoy enhanced protection against dismissal for six months after returning to work. A new right to unpaid bereavement leave acknowledges the need for time to grieve without fear of losing one’s job.

Better Flexible Working and Harassment Protections

The existing right to request flexible working, already a day-one entitlement, will be strengthened. Employers will need to provide clear explanations when rejecting requests and ensure their decisions are reasonable rather than arbitrary.

On workplace safety, employers will be required to take ‘all reasonable steps’ to prevent sexual harassment and will be held accountable for harassment by third parties such as customers or clients. These measures reflect growing recognition that workplace culture must change.

Easier Access to Justice

Workers will have twice as long to bring employment tribunal claims, with the deadline extending from three to six months. A new Fair Work Agency will consolidate enforcement of various employment rights and will have the power to bring cases on behalf of workers, potentially removing the financial and emotional burden many face when challenging their employers.

The Road Ahead

Most of these reforms are not expected to take effect until 2026 at the earliest, with consultations ongoing to finalise the details. The government insists it has worked closely with both businesses and trade unions to develop measures that are both pro-worker and pro-business.

For employees, these changes represent the most comprehensive upgrade to workplace rights in decades. From greater job security to better work-life balance and stronger protections against exploitation, the Employment Rights Bill promises to deliver meaningful improvements to working life for millions across the UK.

The question now is not whether these changes will happen, but how effectively they will be implemented and enforced. For workers who have long called for greater protection and dignity at work, this legislation offers genuine hope for a fairer future.

If you would like support in navigating these changes, please contact Nina Francis on 020 3831 2664 or email enquiries@wellerslawgroup.com

Employment Law Changes with the new Labour Government

Posted on by Nina Francis

After 14 years of a Conservative government, Labour have now taken up residence in Downing Street. Alongside the change in residence, the Labour party’s manifesto outlines several changes that employers need to be aware of, it they are enacted, subject to consultation. These key reforms are set to be introduced within 100 days and span from discrimination law and “Day One Rights” to trade unions and industrial action.

 

Day One Employment Rights – Key Changes:

  1. Unfair dismissal, sick pay and parental leave

Currently, an employee must accrue two years of continuous service to a company before they can claim unfair dismissal in an employment tribunal.

Labour’s reform will grant protection of unfair dismissal as well as sick pay and parental leave which will be deemed “Day One Rights”

 

  1. Fair Pay

National minimum wage (NMW) rates are presently based on average earnings.

With Labour’s manifesto, existing age bands (allowing payment of a reduced rate) will be scrapped in favour of a flat rate for all age groups.

“Fair Pay Agreements” will be introduced, under which pay rates are determined by sectoral collective bargaining. It is likely that this will be trialled out in the social care sector before this is rolled out to other sectors due to a lack of support in the business community.

 

  1. Discrimination Law

Currently, equal pay legislation applies to gender pay disparities to cover disabled and BAME employees. Gender Pay Gap Reporting has been mandatory since 2017.

Key changes in this area will include:

  • Implementation of Ethnicity Pay Gap Reporting (for employers with 250+ employees).
  • Implementation of Disability Pay Gap Reporting (for employers with 250+ employees).
  • Gender Pay Gap Reporting action plans are to be published and are to include outsourced workers. This means that pay gap reporting will be a far larger exercise than it has been historically.
  • Sexual harassment will be treated and have similar protections to whistleblowing
  • There will be enhanced protection of sexual harassment for interns
  • A ban on dismissing returning maternity leavers will be introduced, covering six months after the return to work except in specific circumstances.

 

  1. Enforcement

Labour is set to introduce extensions of time limits for tribunal claims from three months to six months. This is due to delays in the current tribunal system.

Labour are proposing to establish a new state body “Fair Work Agency” with the power to inspect workplaces and take legal action where necessary. This will mean documentation and record keeping will become more significant going forward.

 

  1. Ending “one-sided” flexibility

Labour are planning to implement a ban on “fire and rehire”. Further movement is expected in this area as Labour openly criticised the recently released Tory statutory Code of Practice as being “inadequate”.

Additionally, zero hour contracts will be banned and there will be a shift in narrative on empowering employees to request contracts that reflect the hours of work undertaken.

 

  1. Trade Unions and Industrial Action

Labour will be working to simplify trade union recognition and improve trade union worker access to workplaces. Further, self-employed workers are to enjoy the same improvements to trade union rights as workers.

 

  1. Worker Status & Self-Employment

Labour aim to (eventually) abolish:

  • The U.K.’s three tier system for employment status
  • The distinction between employees and workers – this will need further consultation on the logistics of sick pay, family leave and other policies in these models.

Rights for self-employed people will be written in a contract and will enable self-employed workers to take action on late payments, extend health and safety blacklisting protections to the self-employed. Further clarity and consultation is needed in this area.

 

If you have any enquiries relating to these potential changes, please get in touch with Nina Francis by email nina.francis@wellerslawgroup.com or by phone on 020 3831 2664.

What are the valid reasons for terminating employment?

Posted on by Nina Francis

We often find that employers can feel that it is almost impossible to dismiss an employee.

Whilst we would advise that employers always seek advice before terminating an employee’s employment (or starting any process towards this), with the right advice and guidance, this can be a straight forward process.

 The Law

By law, to lawfully dismiss an employee with more than 2 years’ service, you must show that you have a valid reason that you can justify and that you acted reasonably in all the circumstances.

Fair reasons for dismissal

Under section 98 of the Employment Rights Act 1996 (the 1996 Act) there are various valid reasons for terminating employment. These include:

  • Redundancy
  • Conduct
  • Capability
  • Breach of a statutory restriction
  • For some other substantial reason

Dismissal due to redundancy

In this changing economic climate, many companies have had to restructure themselves to keep their competitive edge, to improve or simply to survive.

In short, redundancy occurs when an employer needs to reduce the size of the workforce. There are many reasons why this might be the case, including:

  • The introduction of new technology that makes certain jobs unnecessary
  • The job a person was hired to do no longer exists
  • The business is closing down or a change in location
  • There is a need to cut costs and staff numbers might therefore be reduced

Redundancy as a form of dismissal can be considered fair as long as there is a genuine reason for the redundancy, a lawful process has been followed and a fair selection criteria has been applied.

Our specialist employment team can help guide you through any potential redundancy process to seek to ensure that you follow the processes which you are required to, so as to minimise potential liabilities and follow best practice.

Termination due to misconduct 

Misconduct issues could include things like persistent lateness or unauthorised absences from work, while performance issues could include an inability to keep up with important changes to their job or to get along with work colleagues.
That said, unless any misconduct or performance issues are especially serious, you will need to give an employee the opportunity to change their behaviour or the chance to improve their performance prior to making any decision to dismiss. You may also need to provide suitable training.

In some cases, however, the misconduct may be so serious so as to justify summary dismissal. This is known as gross misconduct, where terminating employment without notice, or pay in lieu of notice, can be lawful, as long as you follow a fair process and there is clear evidence to support your finding.

Termination due to capability

You can lawfully dismiss an employee if they are incapable of doing their job to the required standard or they are capable but unwilling to do their job properly.

Capability dismissal should follow prior reasonable attempts by the employer to understand, manage and improve employee capability issues.

Performance reviews and discussions with employees should be ongoing. When performance is monitored and reviewed regularly, there are more opportunities for feedback and for identifying and resolving problems. The goal should be to establish why the employee’s performance is lacking, provide support and then work towards a legally compliant dismissal if necessary.

Throughout the capability management procedure, it will be crucial to have evidence to demonstrate how the employee is falling short of the standards required and as proof of performance management measures taken by the employer.

Illness will also fall under this sub-heading

It is possible to fairly dismiss an employee by reason of a longstanding illness or prolonged absence through sickness where this has affected their ability to do their job or has made it impossible for them to do their job at all.

However, where a capability issue is linked to someone’s long-term disability of physical or mental health, dismissal should be used as a last resort after exploring ways in which you can help the employee to do their job. This could include arranging an occupational health assessment to determine what, if any, reasonable adjustments can be made to assist them, such as a phased return to work, amended duties, altered hours or workplace adaptations.

Dismissal due to a breach of a statutory restriction

This reason is rarely used when terminating employment but can be necessary where continuing to employ someone would mean that you are breaking the law.

Examples of statutory restriction dismissals could include:

  • If an employee’s immigration status prevents them from working, such as their work visa expiring, it would be illegal to carry on employing them.
  • If an employee is required to drive as a substantial part of their role and has lost their licence, and there is no alternative work they can do
  • If someone fails to earn or maintain a qualification that is required for them to perform their job.

If you suspect or become aware of a change in an employee’s working status, you should arrange an initial discussion with them to discuss their situation. The employment contract should include provision for dismissal without notice if the employee is found to have lost the right to work, as this would constitute a breach of contract.

Termination due to some other substantial reason (SOSR)

The concept of “some other substantial reason” (SOSR) is a statutory catch-all provision that allows an employer to fairly dismiss an employee in circumstances where no other potentially fair reasons apply.

The SOSR depends on the facts and circumstances of each case and there is no helpful statutory definition of the term ‘substantial’, but it cannot be anything frivolous or insignificant.

Case law has provided some examples where the courts have found that an employee was fairly dismissed for SOSR. These include:

  • Third party pressure;
  • The employee refuses to accept new terms of employment;
  • Personality clash between two or more employees;
  • Conflict of interest;
  • Expiry of a fixed term contract;
  • Reputational risk; and
  • Business reorganisation that doesn’t fall under the statutory definition of redundancy.

Employers must also act reasonably and follow an appropriate procedure before dismissing the employee. Alternatives to dismissal, such as moving the employee to a different location or department, should always be considered before moving to dismissal. However, whether this can be achieved tends to pivot on the resources and size of the organisation in question.

If you have any issues with regard to termination of employment please contact Nina Francis on 0203 831 2664 or email Nina on nina.francis@wellerslawgroup.com

 

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