The Labour Government has introduced what it calls "the biggest upgrade to workers’ rights in a generation" with the Employment Rights Bill (the "Bill"), which has been introduced to the House of Commons.
The Bill intends to address unfair employment practices and create a fairer, more flexible work environment. The second reading of the Bill took place on Monday, 21 October.
Whilst still in its infancy, the Bill will have no immediate effect on UK employment law and it has been suggested that the earliest these proposed reforms will come into effect is 2026.
It is, however, worthwhile for employers to consider the Bill in its current form to mitigate any commercial impact it may have once it is passed, and the reforms are introduced into law.
The Bill can be found here and makes provision to:
- Give employees protection against unfair dismissal from day one, while allowing employers to operate probation periods;
- Establish parental and bereavement leave from day one;
- Give employees the right to transition from zero-hour contracts if they work regular hours over a defined period;
- End "fire and rehire" and "fire and replace" practices;
- Strengthen employee rights to request and secure flexible working arrangements;
- Deliver stronger dismissal protections for pregnant women and new mothers;
- Establish a new Fair Work Agency with new powers to enforce holiday pay; and
- Strengthen statutory sick pay rules.
Changes to UK employment legislation do not have any direct effect on either Guernsey or Jersey employment laws, but given the sweeping reforms under consideration in the UK and the trend to favour remote / flexible working, Channel Islands businesses with employees based in the UK must stay abreast of these reforms.
Consideration should also be given to checking policies and procedures to ensure compliance with the applicable law in the jurisdiction where their employees are physically based.
If you would like any further information, please get in touch with your usual Bedell Cristin contact or one of the contacts listed.
Locations: Guernsey | Jersey
Related Service: Employment Law