The CIPD is calling on the UK Government to engage with employers before implementing proposed changes under the Employment Rights Bill.
Ahead of its evidence session with the Business and Trade Select Committee today (17 December), the professional body for HR and people development warns that insufficient consultation could lead to unintended consequences for both employers and workers.
Ben Willmott, Head of Public Policy at the CIPD, said, “The Employment Rights Bill will have major implications for all employers in Britain. The CIPD supports many of the aims of this Bill and wants to see genuine consultation across all the reforms being put forward. That may mean there will be a need for potential changes and refinements to policy on certain measures.”
Proposals under scrutiny include the removal of the single establishment rule for collective redundancies, which could have significant implications for larger organisations. According to the CIPD, this change may result in employers being in a near-continuous state of consultation over redundancies, leading to serious operational challenges.
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Key Areas of Concern for Employers
Another area of concern is the proposal to make it automatically unfair to dismiss an employee for refusing changes to their terms and conditions of employment. The CIPD warns that this could leave businesses struggling to make necessary adjustments, especially during financial difficulties, and may ultimately lead to higher redundancy rates.
The government’s approach to consulting on new rights for zero- and low-hours workers has also raised questions. The current plan focuses on how the rights will apply rather than on whether they should include agency workers at all. The CIPD argues that a broader discussion is needed to ensure any changes are fair and practical for all parties involved. Recently, the Association of Professional Staffing Companies (APSCo) also raised concerns over the government’s proposed reforms to zero-hour contracts, describing them as ‘unsuitable’ for agency workers.
The CIPD has urged the government to provide more opportunities for employers to contribute feedback as further details emerge through consultations and secondary legislation in 2025.
Concerns Over the Statutory Probation Period
The introduction of a statutory probation period is another proposal requiring careful consideration. A CIPD survey revealed that more than a third of employers (36%) believe removing the unfair dismissal qualifying period would make managing new starters’ performance more difficult. A quarter of respondents said it could make organisations more reluctant to hire, while 25 percent anticipate an increase in tribunal claims.
Another proposed measure under the Bill is the right for zero- and low-hours workers to have contracts reflecting their typical hours. The CIPD has pointed out that the suggested 12-week reference period for calculating these hours may be too short. This could lead to challenges in accurately determining workers’ regular patterns and risk unintended impacts on workforce planning. Planned changes to rules on statutory union recognition – including reducing the current threshold for 10 percent of the relevant bargaining unit to be union members down to 2 percent – was also flagged by the CIPD as an area requiring detailed input from employers.
Willmott added, “The government must consider the impact of employment reforms holistically rather than as individual legislative changes. There also needs to be a strong focus on providing information, advice and guidance to help organisations – particularly SMEs – to be ready for changes to the law, as many micro and small firms won’t have access to dedicated HR support and will be at most risk of non-compliance.
“There are areas that require detailed discussion going forward due to their complexity and potential impact on organisations. Meaningful consultation with employers and business bodies will ensure the government is upholding its four principles of modern industrial relations – collaboration, proportionality, accountability and balancing the interests of workers, business and the wider public.”
