Employment & Pensions Blog: Employment Rights Bill - Are Small Business About to Get Free HR Advice Paid For by The Government?

The finer details of the Employment Rights Bill (ERB) are at long last beginning to take shape, with many suggesting the ERB will be given Royal Assent in late summer / early autumn. We know the implementation dates for the different rights are being staggered to help minimise the impact on businesses, but it is still going to mean an incredible change to the way businesses and HR teams manage the workforce. 

Research published earlier this year by the Federation of Small Businesses suggests that 92% of small businesses are concerned about the impact the ERB will have on them. The Government now seems to recognise that the Bill will have a disproportionate impact on small businesses who are less likely to have established HR teams. To help solve the problem, media reports earlier this week indicate that the Department for Business and Trade is considering a voucher scheme for small businesses that allows them free access to HR advice to help them navigate the changes brought in by the ERB. According to the reports, the scheme will offer them vouchers that are redeemable from HR specialists in return for their assistance. How much each small business would be given, and which HR specialists they would have to use, remains to be seen. 

With the scale of the changes being brought in by the ERB, giving small businesses access to free HR advice is undoubtedly welcome. Without established HR teams to support them, they will be particularly vulnerable to increased grievances and Employment Tribunal claims. We shall have to wait and see if the voucher scheme becomes a reality, but the fact the Government is considering this reiterates the scale of the change that is coming for businesses of all sizes. 

For now, we know what the big picture changes in the ERB are going to be, and there is a lot businesses can do to prepare and begin training managers and key personnel. However, for some of the changes (like zero hours contracts), Parliament is yet to finalise the finer details that will be key to business preparation and planning. Frustratingly, we shall have to wait a little longer until we get the final legislation, which will hopefully be in the coming weeks.    

If you require any further assistance or support in matters involving the Employment Rights Bill, please contact a member of the Employment Team.