Give the gift of HR: Government reportedly considering Employment Rights Bill voucher scheme

As the Employment Rights Bill nears the end of its passage through Parliament, the government may be getting creative about how best to support employers with the changes they will need to make to reflect the new and extended rights set out in the Bill. A press report from City AM published this week suggests that the Department for Business and Trade is considering introducing a voucher scheme, which would allow small businesses to access free advice from HR specialists to help navigate the contractual changes flowing from the reforms in the Bill. 

Putting aside how such a voucher scheme would work in practice, the suggestion that this option is being considered by the government highlights some important points about the Employment Rights Bill. 

It further confirms that the implications of the Bill will be wide-ranging for businesses. Hailed by the government as ‘the biggest upgrade to rights at work in a generation’, the Bill will introduce a host of new and expanded individual employment rights - from ‘day one’ unfair dismissal protection, to new rights to guaranteed hours, through to expanded leave and statutory sick pay (SSP) entitlements. It will also significantly expand collective rights, by introducing new restrictions on changes to terms and conditions, expanding the requirement to consult on collective redundancies and granting a wide range of new trade union rights. We have analysed all of these reforms, and the many more included in the Bill, in more detail in our ERB handbook and considered what they will mean for employers. 

With so many reforms in the pipeline, there is going to be a lot for businesses to get to grips with. The discussions around a potential voucher scheme clearly demonstrate the crucial role that People and HR teams are going to play in helping their organisations adapt to these shifting sands. As well as being on top of the legal changes, HR and People professionals will have a unique insight into how the reforms will bed in on the ground and dovetail with existing processes. HR leaders will be at the heart of strategic discussions within their organisations, to both explain the implications of the Employment Rights Bill and to build strategies to help manage the operational impact. 

To play this key role to its full potential, HR and People professionals will need to continue to keep up to date with the changing detail that sits within the Employment Rights Bill. As recently as July, the government proposed further significant amendments to the Bill, including changes to the original ‘fire and rehire’ provisions, a new right to pregnancy loss bereavement leave and a ban on the use of non-disclosure agreements to prevent disclosures relating to harassment and discrimination. More information on these amendments, which have since been approved by the House of Lords, can be found in our update here. 

The need to keep on top of developments will not stop when the Bill becomes law. Whilst the Bill is expected to receive royal assent in the autumn, much of the detail of the reforms will follow in consultation and in secondary legislation. The good news for HR and People professionals is that this detail and the subsequent implementation dates for the reforms will not come all at once. In July, the government published its roadmap for implementing the Employment Rights Bill, in which it provided planned dates and time periods for consultation and commencement. Some initial changes will be implemented two months after royal assent, but the majority of reforms are not set to take effect until next year at the earliest - several key reforms (including major SSP changes) are set to take effect in 2026, whilst further changes (including day one unfair dismissal rights) are not due to come into force until 2027. 

Although it remains a case of ‘wait and see’ in some respects, there is plenty that employers can do to prepare in the meantime. Some key steps to explore at this stage include reviewing your employee relations strategies in light of the upcoming changes to trade union rights and industrial action rules (which will be some of the earliest reforms to be implemented) and considering what changes will be required to your payroll systems and policies to reflect the changes to SSP and the new day one rights for paternity and parental leave, which are set to come into force in April 2026. Taking a more holistic view, it is crucial that you keep senior leadership updated on the changes that are coming down the track so that they can factor these into planning and budgeting.

Whether government-backed ERB vouchers will ever come to fruition remains to be seen. But two things are clear: businesses of all shapes and sizes will need substantial support to navigate the sweeping changes being introduced by the Employment Rights Bill and, as a result, it is going to be anything but a quiet time for HR and People teams! 

The Department of Business and Trade is understood to be considering a voucher scheme in which firms would be given time with HR specialists to help navigate the contractual changes employers may be forced to make as ministers seek to allay fears over the increased administrative burden.

https://www.cityam.com/government-weighs-offering-hr-vouchers-to-small-businesses-over-employment-rights-changes/