Understand and Prepare: Navigating the Employment Rights Bill

By Gareth Dando Employment Partner at Ramsdens Solicitors (www.ramsdens.co.uk) 

It’s a time of massive upheaval in the care sector, particularly when it comes to staffing and employment. Employment Partner at Ramsdens Solicitors, Gareth Dando explains how employers should navigate upcoming changes, including the Employment Rights Bill.

It’s a time of major change for employers in care. The fundamentals which have held the industry together in recent years, foreign workers and flexible conditions, are being restricted, so the care workforce is set to change radically in the coming years.

This will come as another major shock to the industry, which has been shaken relentlessly in the past few years, from Brexit to Covid. However, the upside of having been through so many changes already is that we’ve learned how to, and how not to, navigate them.

Changes to employment law tend to be long term and structural, so understanding and preparing for them is critical to mitigating their impact and reducing friction in the workforce.

There’s rightly been a lot of focus on the government’s Employment Rights Bill, which is currently going through the House of Lords. The bill has not been passed yet, so is subject to amendment, but the major reforms it contains have been revealed and are highly likely be implemented. Understanding and planning for these changes now is the best way to mitigate their impact later.

0 Hours Contracts Banned
Under the new rules, firms will have to offer guaranteed hours to qualifying workers after a reference period (which we anticipate will be 12 weeks), and provide guidance on the working patterns of these hours (i.e. times of day). The guaranteed hours must reflect the hours worked during the reference period.

For care providers, who rely heavily on agency, part time, and flexible staff, such contracts may be disruptive. It is very difficult to predict how many hours employees will needto work far ahead of time, especially when there’s a high turnover of staff and patient needs varying day to day.

However, some have welcomed the move, which will help combat exploitative working practices and make the industry more appealing to work in. The practicalities of the change are a worry though, many have called for more funding from local authorities, as more contracts will mean higher wage bills.

While the changes are likely to increase costs, examining exact staffing needs and allocating contracts accordingly is the best way to avoid signing contracts with surplus hours and prevent overspending.

Day One Rights
Probably the most prominent measure in the bill, staff will now have rights including sick pay, parental leave, and unfair dismissal from day one of their employment.

Similar to zero hours contracts, many have welcomed the rights changes, which will make industries like care, where work is often casual, more appealing to work in. However, the practicalities remain a problem, with more funding required to subsidise additional leave.

Probationary periods will still be allowed, during which employers will be able to dismiss staff more easily if they have concerns. Employers should make use of these to ensure they’re maintaining workforce quality.

Right to Flexible Working
The bill will make it much harder for employers to refuse requests to work flexibly.

Care providers are well placed to reject such requests, as they have reasonable grounds for doing so – patients require constant care so shift work is a necessity, so as a care worker not being on time and at your place of work would have a detrimental impact on your ability to do your job.

However, employers can expect to see more disputes with their employees on this issue, as other industries, particularly in the service sector, move towards more flexible policies. Explaining to staff why rights to flexible working are not appropriate in the care sector is probably the best way to prevent such disputes ahead of time.

These changes, alongside new immigration rules, will radically alter the care industry in coming months and years. Starting your planning now is the best way to navigate the storm. This isn’t the first radical overhaul the sector has experienced in the last few years, and it won’t be the last. Employers with cool heads and a long-term view will come off best.