Employment Rights Bill hits stumbling blocks

The flagship Employment Rights Bill has hit several stumbling blocks in the House of Lords, leaving companies and HR departments in an ongoing state of limbo.

The Government had put forward amendments to the legislation, but a number of them were rejected in the second chamber. The problem areas were amendments concerning political levies for trade union members, ballot thresholds for strike action, day-one protections against unfair dismissal and zero-hours contracts.

What this means is that those parts of the bill will need to be revised again before going back before the House of Lords. This leaves UK companies and their HR departments with a great deal of uncertainty. There is even the possibility that the Bill could collapse entirely.

Kate Palmer from Peninsula Business Services stated that companies may be pleased by the delay at first. She pointed out that the government was liable to stand its ground on key measures though, leading to ongoing confusion.

Some firms may decide to outsource the issue to HR services in Bedfordshire or elsewhere, so that they can avoid the distraction. This will let them concentrate on the day-to-day management of their companies.

Speaking to HR Magazine, AdviserPlus HR technical consultant Sarah Kerr said:

“HR should hold off on major policy overhauls until the Bill’s final form is clear but stay alert. The eventual outcome will likely bring notable shifts in dismissal rights and contract flexibility that will require swift operational updates.”

It is not clear when a revised version of the Bill might go back before the House of Lords.