Following the recent Cabinet reshuffle after the resignation of Angela Rayner, which saw Justin Madders removed as Employment Rights Minister and Business Secretary Jonathan Reynolds reassigned to Chief Whip, union leaders have raised concerns that the Bill may have lost its key advocates.
With its main architects no longer in post, questions remain over who will take ownership of driving the legislation forward.
Concerns first arose in July, when the Bill reached the report stage in the House of Lords and amendments were proposed in relation to “fire and rehire” practices and zero-hours contracts.
As originally drafted, the Bill made it automatically unfair to dismiss an employee who refused a variation to their contract, or to re-engage them (or another individual) on a revised contract for substantially the same role.
Under the amendments introduced in July, this protection would only apply where an employer seeks to make a “restricted variation.” This term covers contractual changes that reduce pay, alter performance-based pay measures, affect pensions, change working hours or shifts, reduce time off, or introduce variation clauses allowing such changes without the employee’s consent. Existing clauses are unlikely to be affected.
Dismissal would not be automatically unfair where the proposed change is not “restricted,” such as alterations to duties or place of work. This marks a departure from the Bill’s original position, where refusal to accept relocation could not lawfully result in dismissal.
The Lords also voted, by a majority of 106, to amend the provisions on zero-hours contracts.
The amendment, proposed by Lord Goddard of Stockport, replaces the obligation for employers to offer guaranteed hours with a right for workers to request them. Employers would be required to grant any such request.
The Commons considered the Lords’ amendments on 15 September, and largely rejected them. The Bill has now returned to the Lords, more or less as originally approved by the Commons, for further debate before proceeding to Royal Assent.
Should the Bill receive Royal Assent in Autumn 2025 it is expected that rules around ‘minimum service levels’ for strikes will be removed immediately. It is also expected that within 2 months of the Bill becoming law dismissal for taking part in industrial action is expected to become ‘automatically unfair’ removing the current 12-week limit for claiming unfair dismissal.
There are further changes expected to take place within 2 months of the Bill becoming law in relation to Trade Union activity, including:
- the time needed to give notice of industrial action will reduce to 10 days, instead of 14 days
- unions will need a simple majority to vote for industrial action
- picket supervisors will no longer be required
- industrial action mandates will last for 12 months, instead of 6 months
- industrial action and ballot notices will be simplified
- political fund rules will change.
HR Solutions continue to closely monitor developments in the Bill and as various elements become part of the legislation we will be on hand to give practical advice and guidance to help you adapt and prepare as the Bill moves towards implementation.
