The UK government published the Employment Rights Bill within its first 100 days in office, thereby meeting its target. Now, substantial amendments to the Bill have been revealed. This insight discusses those changes and their likely impact.

Time limits for tribunal claims

In the amendment paper to the Employment Rights Bill (the Bill) published on 27 November 2024 (the Amendment Paper), the government proposed a significant change to the time limits for almost all employment tribunal claims. Currently, claimants must file all claims other than redundancy pay within three months (as extended by early conciliation) of the incident being complained about, or risk having their case struck out due to time bar. The Amendment Paper extends this period to six months for all claims, effectively doubling the time employees have to raise their claims. This change is likely to increase the number of claims raised and reduce the number of cases dismissed early in proceedings due to timing issues.

Unfair dismissal as a day one right

The Bill would make unfair dismissal a day one right, albeit with less onerous requirements on employers during the early days of employment. It uses the phrase "initial period of employment" for these early days, but does not specify what this means, leaving this to be set out in further regulations. However, the Amendment Paper includes a proposal from Liberal Democrat MP Sarah Gibson that this period must be between three and nine months from the day on which the employee starts work, with the actual period still to be set out in regulations made under the Bill. This will determine when employers have to give notice of termination if they wish to rely on the less onerous standards – although it remains unclear what those standards will be.

Flexible working

The Amendment Paper includes several amendments related to guaranteed hours, though most have limited effect. However, a change to note relates to compensation for shifts cancelled, moved or curtailed at short notice. Whilst the Bill would give a tribunal discretion on whether to make an award and what level of payment, the Amendment Paper seeks to increase the flexibility tribunals will have, as it proposes that awards be based around their view of the "seriousness of the matter". It is expected that further regulations will set a maximum cap.

Gender and protected characteristics

The Amendment Paper expands on protected characteristics, specifically gender, by adding "menstrual problems and menstrual disorders" as factors considered for "matters related to gender equality". Under separate, further regulations, it is anticipated that employers will have to produce equality action plans, and that these should now include menstrual issues within any section relating to gender. This change is reflective of the growing awareness of issues relating to menopause in the workplace, with many organisations appointing menopause champions and sharing ideas for how to support colleagues. It seems this progress will soon be reflected in law.

Trade unions and access to the workplace

The Amendment Paper clarifies that trade unions' right to access workplaces does not extend to any workplace that is also a dwelling.

Changes proposed by MPs

Several other changes were proposed by MPs outside government, including:

• a clause to make void any non-disclosure agreement (NDA) insofar as it aims to prevent a worker from disclosing harassment or sexual harassment. Such restrictions are already controversial and should not seek to prevent disclosure to appropriate authorities;
• a clause prohibiting the use of "substitution clauses" in any contract relating to employment, dependent contractors or workers. These clauses are generally used to clarify that the individual does not need to carry out the services required by a contract personally. They can instead appoint a substitute to perform those services. The absence of any requirement for personal service is often an indicator that the individual is not an employee or worker – and is sometimes included for that sole purpose. Prohibiting such clause appears to be intended to ensure more individuals are considered to be employees or at least workers. However, it is unclear how this will work where the parties genuinely want flexibility.

Given the scope of the Bill, it is unlikely that this will be the last amendment paper before implementation. If you have any questions on these amendments, or any which follow, please reach out to your Dentons contact.