Amendments to the Employment Rights Bill 2024 – what’s changed?

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First introduced in October 2024, the Employment Rights Bill has since gone through substantial amendments. We look at some of the changes to the original bill and what this means for both employees and employers. 

Agency workers guaranteed hours and shifts 

The Bill will introduce a new framework for agency workers to ensure they receive guaranteed hours and pay for cancelled shifts.  

The responsibility for offering guaranteed hours will rest with the end hirer (except in specific cases to be set out in secondary legislation).  

Both the end hirer and agency will be responsible for providing reasonable notice of any new shifts, shift cancellations and shift changes.  

Agencies must make payments to workers affected by short-notice cancellations but may recover these costs from hirers where they have the contractual right to do so. 

Clarification of guaranteed hours 

This amendment suggests that it will be possible to contract out of the requirement to offer guaranteed hours through a collective agreement, as long as the agreement is contractual. 

This introduces a degree of flexibility for employers that might otherwise have been required to offer guaranteed hours under the Bill’s original provisions. 

Collective redundancy at one establishment 

The original proposal to remove the words ‘at one establishment’ from the collective redundancy thresholds raised concerns that large organisations which were making small numbers of redundancies across vast sites, could be placed in a perpetual collective consultation.  In addition, it could force businesses increase non-permanent forms of recruitment, i.e. fixed term workers. This has now been amended, reinstating the concept of ‘at one establishment’ but introducing an additional provision allowing regulations to set a higher threshold (above 20) for situations where redundancies are taking place across multiple sites.  We do not yet know what this “higher threshold” could be. 

Collective redundancy increased penalties and further consultation 

Failure to comply with collective redundancy consultation requirements will, under the new legislation, result in a penalty of 180 days’ pay (doubled from 90 days).  

The Government will also update the Code of Practice on Dismissal and Re-engagement to reflect the Bill’s attempt at combatting ‘fire and rehire’. 

Trade union key reforms 

Several amendments have been introduced to help ‘modernise’ relations with industry, including: 

• Strengthening protections against ‘unfair practices’ during the statutory recognition or derecognition process 

• Removing the ten-year ballot requirement for trade unions to maintain a political fund 

• Simplifying the information required in industrial action ballots and notices 

• Extending the validity of a trade union’s mandate for industrial action from six to twelve months 

• Providing digital access to workplaces for collective bargaining 

• Plans to consult further on e-balloting for industrial action 

Statutory sick pay changes to eligibility and payments 

The lower earnings limit for statutory sick pay (SSP) eligibility will be removed, meaning all employees will be entitled to receive SSP. 

Employees earning below a certain threshold will receive the lower of 80% of their average weekly earnings or the SSP rate.  SSP will also be payable from the first sick day rather than from the fourth day. 

Notices of underpayment 

A new enforcement mechanism for underpayment of statutory entitlements will be introduced. The Secretary of State will have the power to issue a notice of underpayment covering a period of up to six years where an employer has failed to pay a worker an amount due under certain legislation, which would require the employer to pay the outstanding amount. 

In addition to paying the specified sums due to the underpaid individual or individuals, , a notice of underpayment would require the liable party to pay a penalty within 28 days. The penalty will be the total of an amount in respect of each underpaid individual to whom the notice relates. The amount of the penalty for each underpaid individual will be 200% of the sum specified in the notice, subject to a maximum of £20,000 for each individual and a minimum of £100. Regulations may amend these percentages or amounts 

Secondary legislation needed 

Many of these amendments will require secondary legislation, which the Government has confirmed: 

• Secondary legislation will specify exceptions where the agency, rather than the end hirer, is responsible for offering guaranteed hours. They will also clarify the requirements for reasonable notice of shifts, cancellations and compensation for changes. 

• Further investigation on how e-balloting should be implemented for industrial action will be undertaken by the Government. 

• An update will be made to the Code of Practice on Dismissal and Re-engagement to help combat ‘fire and rehire’. However, no specific consultation has been announced. 

Wider implications for schools 

These proposed amendments could have massive implications for schools. Schools that use agency workers, have trade union relationships and collective redundancy obligations will need to keep an eye on the Employment Rights Bill as it moves through the House of Lords and into legislation, so they are aware of any changes. 

Concerned about how the Employment Rights Bill will affect your business? Contact us today to talk to one of your employment law experts.