3 employment rights changes engineers need to know about

The highly anticipated Employment Rights Bill is slated to become law next year, with specific implementation dates to be announced later. Engineering companies should proactively prepare for these shifts. 

The removal of the two-year service requirement for unfair dismissal is a significant legal shift contained within the Bill. However, it presents an opportunity. Companies can use this as a catalyst to refine their recruitment, onboarding, and performance management processes for new employees. 

It also encourages businesses to proactively address and resolve any employee concerns early on. To mitigate potential risks, a statutory probation period will be introduced. This allows businesses to confidently hire, knowing they have a defined timeframe to assess an employee's suitability. 

While the exact length of the probation is still under consideration, the government suggests a maximum period of nine months. Dismissals during this period will still require a fair reason, but the procedural complexities surrounding the dismissal will be streamlined. 

Currently, employees must earn at least £123 per week to qualify for SSP, and payments only begin from the fourth day of absence. This system leaves lower-paid employees and those with short-term illnesses without SSP, potentially forcing them to work while unwell. This can harm productivity, spread illness, and negatively impact employee wellbeing. 

The Bill aims to address this by removing both the earnings threshold and the waiting period. This will extend SSP eligibility to an estimated 1.3 million low-paid workers from their first day of sickness. However, this change will likely increase employer costs. The Government estimates that eliminating the three-day waiting period alone will cost employers £1.02 billion, raising concerns about potential increases in short-term sick leave. 

To prepare, employers should revisit their absence management policies. Implementing return-to-work interviews can provide valuable insights into the reasons behind absences and identify potential support needs. Consistent training for managers on conducting these interviews is crucial for success. 

Given the project-based nature of engineering, zero-hours contracts are frequently used to manage labor costs and provide workforce flexibility. 

However, the Bill seeks to provide greater security for these workers. It proposes granting workers on zero-hours contracts (and those with contracts below a yet-to-be-defined number of hours) the right to request a guaranteed hours contract after working a specified number of hours over a set period. 

Furthermore, the Bill will introduce the right to reasonable notice for shifts and for any cancellations or curtailments of shifts, along with compensation for breached cancellations. 

Engineering firms should carefully evaluate how these changes might require them to adapt their workforce models. By proactively addressing these upcoming changes, engineering firms can strengthen their policies, improve employee wellbeing and, ultimately, enhance productivity and operational efficiency. 

This article was written by Gill McAteer, Director of Employment Law at Citation, and first appeared in Building Engineer, CABE's official membership publication.