The introduction of the Employment Rights Bill on 10 October 2024 marks a defining moment in employment law, one that will reshape the way we approach workforce management. So how will this impact the the public sector? While no immediate changes will take effect, this draft legislation signals the beginning of a process that will have far-reaching implications for local councils and public bodies. Now is the time to start thinking ahead, even as we wait for the finer details to emerge through Regulations and any amendments to the final Act.

Navigating New Complexities: The Impact on Zero-Hour Contracts and Flexible Working

For those leading in the public sector, several areas within the Bill stand out as critical. One of the most significant shifts relates to how we manage flexible and zero-hour contracts. While these contracts aren’t being banned outright, the new legislation will make their use more complex. Councils that rely on flexible staffing arrangements will need to reassess their models, as stricter conditions come into play. Planning for these adjustments early on will help avoid disruptions when the rules are enforced.

Equally important is the update to flexible working rights. Currently, requests for flexible working must be handled reasonably, but the Bill raises the bar further. Employers will now need to not only adhere to specific grounds for the refusal but also prove that refulsal on those grounds is reasonable.This creates a higher standard of accountability, pushing organisations to be more transparent and careful in their decision-making processes.

Preparing for Change: Essential Updates on Leave Entitlements and  Equality

Changes to leave entitlements are also on the horizon,removing qualifying periods for parental and paternity leave and extending bereavement leave to cover more situations. Although the specifics are yet to be detailed, it’s clear that these reforms will create a more inclusive framework for employees to take time off. For councils, this means revisiting internal policies and preparing for a more flexible approach to managing staff absences.

The new duty to prevent sexual harassment which is coming into force this month is set to be amended to reinstate the wording “all reasonable steps”, which appeared in earlier drafts. Although this change is not expected for at least another year and it is anticipated that there will be some additional guidance on what this means it is a change in the threshold which is currently “reasonable steps” so Councils will have to plan very carefully to ensure they can demonstrate the policies, training and processes are compliant with new expectations.

In relation to third party harassment there is a tightening of the current provisions under the Equality Act 2010 to make the employer liable for harassment of employees by third parties, not limited to sexual harassment but related to any of the protected characteristics. This may mean a review of how inappropriate behaviour from service users is dealt with to ensure staff are protected.

Legal Landscape Evolving: Key Implications for Unfair Dismissal and Industrial Relations

Perhaps one of the more unexpected developments in the Bill is the move to abolish the qualifying period for unfair dismissal claims by total removal of any qualification period from the Employments Rights Act 1996. With new rules on probationary periods set to be introdcuted this change could lead to a fundamental shift in how dismissals, particularly in the first few months of employment, are managed. Employers will need to tread carefully when it comes to terminating contracts, as the legal framework becomes more employee-centric.

In a surprisingly strict move the Bill also  effectively ends the practice of fire and rehire, making it almost impossible for employers to vary contracts or rehire under similar conditions. This change could have a profound impact on public sector bodies where restructures and contract changes are often a necessary part of adapting to financial pressures. The new rules set a high bar for justifying such actions, meaning that councils may need to find new ways to manage workforce changes in a compliant manner.

In addition, redundancy rules are being revised. For public sector employers, particularly those managing multi-site operations like schools, the duty to notify the secretary of state and statutory consultation   extending further than it currently does. This means that workforce reductions will need to be handled with even greater care, ensuring that all legal obligations are met across different locations.

Another area to watch closely is industrial relations. The Bill introduces reforms to how industrial action is organised and protected, with changes to the balloting process and new protections for those participating in strikes. This is likely to shift the balance in negotiations with unions, requiring a fresh approach to handling disputes and strikes.

Future-Proofing Your Organisation: Strategies for Compliance and Adaptation

Finally, the Bill makes important changes for those involved in contracting out services. It introduces stronger protections for employees being transferred to private contractors, reducing the risk of a two-tier workforce. As public services continue to evolve, ensuring that these new protections are incorporated into outsourcing arrangements will be crucial.

While we’re still in the early stages, and not all provisions will come into effect immediately, the new law will undoubtedly bring significant changes to how employment is managed in the public sector. Leaders should start preparing now, even as further details emerge, to ensure their organisations are ready to meet the challenges ahead. We will continue to provide guidance and insights as the Bill progresses, helping you navigate these changes with confidence.

As these changes take shape, it’s essential for councils and public sector organisations to stay informed and prepared. West Midlands Employers’ HR services and Employment Law webinars are designed to provide the guidance and support you need to navigate this complex landscape. Our team of experts is here to help you interpret the new legislation, assess its impact on your workforce, and ensure you’re ready for implementation. Whether you’re looking for tailored advice or in-depth training, we’re here to help every step of the way.

To learn more about how we can assist your organisation, or to book a place on our upcoming webinars, email us at info@wmemployers.org.uk today. We’re here to make sure you’re fully equipped for what’s to come.