EMPLOYMENT RIGHTS BILL, CLARITY ON THE BIG DATE AND THE FAIR WORK AGENCY STARTS TO TAKE SHAPE

After a rip-roaring week with the Employment Rights Bill, we’ve seen yet more updates on the day-one rights. After it was confirmed that unfair dismissal claims can only be brought after six months’ service, it has now been agreed—after some brokering with Angela Rayner and her team—that the amendment reducing the two-year qualifying period down to six months will come into effect from 1st January 2027. This is, of course, all still subject to progression through the Lords, but it now seems incredibly likely that this is the way forward.

What we need next are the transitional arrangements and the process that will sit alongside this. It does feel like things are finally starting to take shape. We’ll keep you updated.

In addition, as part of the Employment Rights Bill there was the creation of a Fair Work Agency, which will take over national minimum wage enforcement. The Fair Work Agency has now appointed its first chair: Matthew Taylor, author of the 2017 Review of Modern Working Practices. He has said there will be a serious focus on improving labour market enforcement.

It appears there will be a strong focus on continuing the work already done by government on national minimum wage breaches and employer compliance. What this all means in practice is still conjecture until a clear remit is published, but it’s likely that the focus on NMW breaches will continue…if not increase.