Employment Rights Bill update: implications for schools

On 4 March 2025, the Government published a list of amendments to the Employment Rights Bill (the “Bill”), which was first introduced to Parliament in October 2024.

The Bill proposes significant employment law reforms, which we considered and discussed in our previous article “Employment Rights Bill: A fundamental shift in workers’ rights” which can be found here.

There has been much speculation since October regarding the detail of the Government’s plans, many of which have been subject to consultation over recent months. The publication of the amendments has provided some clarity in respect of the following proposals:

• Guaranteed hours for agency workers on zero hour contracts
• Collective redundancies and Protective Awards
• Changes to Statutory Sick Pay for low earners
• Trade union reform.

Guaranteed hours for agency workers on zero hours contracts

The Bill, as originally drafted, provided the right for those engaged on zero-hour contracts to:

• Be offered guaranteed hours where regular hours have been worked over a defined period (this period is expected to be 12 weeks)
• Be given reasonable notice of shifts/change of shifts
• Payment in certain circumstances if a shift is cancelled, moved or curtailed.

However, following the publication of the list of amendments to the Bill, the Government has confirmed that it intends to extend the above rights to agency workers.

The Government has noted the tripartite nature of agency work, and that secondary legislation is needed to set out how these new obligations will apply, and where the respective liabilities will fall. That said, the Government has confirmed that:

• Employers will need to offer guaranteed hours to qualifying agency workers
• The responsibility to ensure workers are given reasonable notice of shifts will rest with the employment agency and the employer
• Agency workers will be entitled to compensation if their shifts are changed at short notice
• The employment agency will be responsible for such compensation in the first instance but may be able to recoup this cost in certain circumstances from the employer.

Collective redundancies and Protective Awards

One of the Government’s headline proposals has been the proposal to restrict the use of dismissal and re-engagement (otherwise known as “fire and rehire”) and to reform the law in respect of collective redundancies. As a part of this, the Government has now confirmed that the cap on Protective Awards, the penalty imposed on an employer where they fail to comply with their legal obligations in respect of collective consultation, will double. Currently the Protective Award is a maximum of 90 days’ pay per employee, however this will be increased to an award of up to 180 days’ pay.

By doubling the penalty, the Government hopes to encourage employers to consult meaningfully with staff where collective consultation requirements are triggered.

Further consultation regarding “fire and rehire” and collective consultation is expected over the coming months, and we will keep schools updated on any significant developments.

Statutory sick pay for low earners

In respect of changes to Statutory Sick Pay (SSP), the Government is proposing that employees will no longer be required to earn more than the Lower Earnings Limit (LEL) per week (currently £123 but due to increase to £125 in April) to be eligible for SSP.

The Government has taken some time to consider how SSP will be calculated for those employees earning less than the LEL and has now confirmed the rate will be the lower of 80% of an employee’s average weekly earnings, or 80% of the SSP weekly flat rate. As announced last October, the Government intends to remove the current waiting period for SSP, meaning SSP will become payable from the first day of an employee’s sick leave.

Trade union reform

In line with the Government’s commitment to strengthening trade union rights and removing “unnecessary restrictions on trade union activity”, a number of key provisions have now been confirmed:

• The notice period that unions need to give employers of industrial action is to be reduced from 14 to 10 days
• E-balloting will be introduced to make balloting more accessible (subject to further consultation)
• The period for which a ballot in favour of industrial action will be valid will be extended from 6 to 12 months
• Changes will be made to the trade union recognition process, to streamline the process and prevent unfair practices.

What next?

It is important to keep in mind that the Bill still needs to pass through various stages of the Parliamentary process. It is likely there will still be significant changes to come, and further details to be announced, before the Bill passes into law. However, it’s clear that we’ll see significant changes to employment law and it’ll be important for schools to be aware of the proposals, and keep track of progress.

For schools that are members of the Independent Schools’ Bursars Association (ISBA), we’ve produced an Employment Law Reform Tracker which is available in the ISBA Members Area and is regularly updated in the light of any developments.

If you have any questions in respect of the above issues, or any of the other proposals contained within the Bill, please contact Oliver Daniels, or your usual contact at HCR Law.