The Commons having voted down the House of Lords’ suggested changes to the Employment Rights Bill, the Bill was then sent back to the House of Lords who voted on 28th October. It was anticipated that the Lords would agree and vote this Bill through due to parliamentary precedent and the fact that this Bill was a key part of Labour’s manifesto when they came to power.
However this was not the case, and a number of amendments have been voted down by the House of Lords. The Bill will now bounce between the two houses until agreement can be reached.
The House of Lords rejected the amendment that would oblige employers to offer guaranteed hours to those working on zero-hours contracts from day one. Lord Fox, a Liberal Democrat, suggested that this would be an “added burden” to employers particularly where employees wish to remain on zero hours. He has proposed as an amendment that at the end of the reference period the employer writes out to the employee and give them the opportunity to accept guaranteed hours.
In relation to day one protection from unfair dismissal, the House of Lords have re-stated their previous amendment which would shorten the length of qualifying service from the current two years to six months. Baroness Sharpe, a Conservative peer, expressed concerns that day one rights would prevent employers for taking a chance on young employees.
This back and forth could continue for some time which does mean continued uncertainty for employers who will be keen to know when these major changes will be coming into force.
If you have any questions on any of the issues raised in the above article, please contact Natalia Milne.