Ping pong merrily on high: Employment Rights Bill sent back to Commons

In a dramatic twist, the Employment Rights Bill has been delayed from receiving Royal Assent, after being sent back to the Government by the House of Lords.

It now enters a phase called parliamentary ping pong – yes that is the technical term – where it goes back and forth between the two houses of parliament, while disagreement is resolved.

Let’s catch up with the key points of dispute, what it means for the bill and why another parliamentary technical term means that the Government will eventually get their way, more or less.

The Lords’ objections

Anyone who has paid attention to the formation of the Employment Rights Bill and its journey through parliament to date will know that it is wide ranging. It covers a slew of reform – from the formation of the Fair Work Agency to abolishing the two-year grace period for unfair dismissal challenges. Visit our Employment Rights Bill Centre for fuller information on all the bill’s detail.

The Lords have, for now, voted down several key points. They have:

• Opposed changes which would force employers to offer guaranteed hours to workers on zero-hour contracts (302 votes to 159).
• Voted against allowing workers to take employers to tribunal for unfair dismissal from day one (301 votes to 153).
• Voted for keeping the current 50% turn out requirement for an industrial action ballot of trade union members to stand (267 votes to 153).
• Rejected the move to automatically sign up trade union members to pay a political levy (249 votes to 142).

Like us at The HR Dept, they generally feel that all these changes are too burdensome on SME businesses.

During the ping pong, perhaps diluted versions of the above may come to pass.

On zero-hour contracts, a Liberal Democrat peer mooted offering employees guaranteed working hours at the end of each reference period (probably every 12 weeks), but giving them the option to decline. After all, flexibility can be appreciated both ways.

Maybe on day one unfair dismissal claim rights, a compromise on shortening the grace period from two years to six months could be found. Or maybe not…

The Salisbury-Addison Convention

The Government does have an ace up its sleeve: The Salisbury-Addison Convention.

Dating back to 1945, this is a quirk (not legally codified) of our parliament which accepts that the Lords cannot vote against second or third readings of any bill which was clearly promised in a government’s manifesto. And nor will they add any wrecking clauses to it, although they can suggest amendments.

With the Employment Rights Bill so prominently touted in the Labour manifesto, that may eventually be check mate.

By your side

We would be delighted on behalf of SMEs if the Lords successfully add some protections for employers. For the last eighteen months or so this has been a dynamic story. We will keep you updated on any further twists and turns. If you would like specialist advice to ensure you are ready for the dramatic changes as they come into law, please do not hesitate to contact us and we can explain how we can help. Call us on 0117 970 2955 or visit www.hrdept.co.uk for more information.