The controversial new Employment Rights Bill has passed through the Commons and is now awaiting Royal Assent before becoming law.
Timings are set to be staged through 2025–27, although it’s not yet clear how and exactly when the new employment rights will take effect. Some measures, such as the repeal of the Trade Union Act 2016, will happen automatically two months after Royal Assent. Others, such as the headline reforms on zero hours contracts, day one unfair dismissal rights and changes to collective consultation, will require further scrutiny and secondary legislation before they can be implemented.
The Government is pursuing an ambitious programme of consultations this autumn, addressing some of the knottier issues including day one unfair dismissal rights, fire and rehire reform and a range of trade union measures.
Although the roadmap for consultations and secondary legislation has already been published, the recent Government reshuffle could impact this, particularly depending on the priorities of the new minister for employment rights.
So, what does this all mean for warehousing?
Well, at first glance, improving working conditions and providing core protections for employees in a sector that is people-intensive is to be welcomed.
However, if the detail isn’t right, what seems to be progress becomes problematic. While UKWA welcomes the intent, we need our government to apply critical thinking, testing the likely consequences for the warehousing and logistics sector. After all, it is our sector that vitally underpins defence, housebuilding and the wider objective of economic growth. And when we surveyed UKWA members in the summer, managing your workforce and your costs came out as the biggest challenges.
The Employment Rights Bill (ERB) implements Labour’s much-touted plan to “Make Work Pay”. In addition to day-one protection from unfair dismissal (with a new approach to probation periods), it also removes the three-day waiting period for Statutory Sick Pay (SSP) and scraps the lower earnings limit, extending SSP eligibility.
On zero hours work, the Bill creates a new duty to offer guaranteed hours that reflect the hours worked over a reference period (Government preference is 12 weeks), plus reasonable notice of shifts and compensation for short-notice cancellations. Agency arrangements are brought into scope with bespoke rules.
Following representations from employers’ groups, including the UKWA, the House of Lords amended the Bill, allowing a six-month qualifying period for unfair dismissal claims. However, the Government rejected the Lords’ amendments, and the bill will now receive Royal Assent (and become law) with all the major proposals intact.
The instinct to protect workers is laudable and understandable. However, there has to be the right deal for employers too. Many are still reeling under the impact of the Government’s National Insurance hike and the higher than inflation increase in the Minimum Wage. Good employers want their workers to feel stable in their jobs, but they also need to be able to afford to employ people on a basis that is sustainable in the long-term.
Clare Bottle
UKWA, CEO
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