The Government’s most recent round of proposed amendments to the Employment Rights Bill—detailed in the Amendment Paper published on 5 March 2025—brings a fresh wave of proposed reform. These changes challenge established norms and empower both workers and unions, while simultaneously tightening the screws on non-compliant employers.
Highlight: Agency Workers
The amendments introduce a new chapter into the Employment Rights Act 1996 that would clearly define “agency worker” for the purposes of guaranteed hours and shift rights. Agency workers – often caught in a grey area between traditional employment and temporary work – would enjoy defined rights regarding shift payments and guaranteed hours during a currently undefined reference period. A follow-up amendment would ensure that even those without a traditional worker’s contract aren’t left without recourse if wages are withheld. Finally, the amendments would allow for worker and agency worker collective agreements to expressly exclude and replace certain statutory duties or rights.
Highlight: Collective Redundancy Protected Period
The “protected period” for collective redundancy consultations would be extended from 90 to 180 days. This change would empower Tribunals with a longer window with which to impose a higher protective award for employees in cases of collective redundancy. However, as confirmed by the Government, no interim relief will be available for those bringing claims for protective awards and/or unfair dismissal claims in cases of ‘fire and rehire’.
Highlight: Other Amendments
The Amendment Paper makes a whole host of further amendments that, while perhaps not as important as the above, are still of note, including:
- A legal obligation to keep detailed records demonstrating compliance with annual leave and other working time entitlements.
- The definition of “employment business” under the Employment Agencies Act 1973 being expanded to cover modern arrangements, including umbrella companies.
- Removal of the lower earnings limit for Statutory Sick Pay, to ensure that all employees are entitled to SSP (albeit for lower earners, at 80% of their average weekly earnings if lower than the current statutory rate).
- Trade union recognition procedures to modernize collective bargaining and protect against ‘unfair practices’ intended to influence the outcome of a recognition application.
- Trade unions would no longer have to renew their political resolutions every ten years to maintain their political funds.
- The rules governing industrial action ballots being simplified – replacing numerical thresholds with majority voting and extending the ballot’s effective period to a fixed 12 months.
- Trade union access agreements could include non-physical entry, such as, for example, digital right of access.
- The Secretary of State may issue notices of underpayment when statutory pay is breached. A penalty framework would be introduced equal to 200% of the underpayment, capped at £20,000.00.
- The Secretary of State being granted enhanced powers to enforce compliance through court orders and tribunal proceedings. Notably, if a worker is unlikely to bring a claim, the government could step in and initiate proceedings on their behalf.
- The amendments would allow the Secretary of State to provide legal advice and representation in employment-related disputes. Importantly, there are now provisions for recovering the costs of such legal assistance from awarded costs and even for recouping enforcement expenses from non-compliant parties.