The key areas for proposed reform are:

1. Terms of employment
2. Pay and benefits
3. Voice and representation
4. Work life balance

Some further information around the key proposals is set out below.

1. Terms of employment

The consultation proposed to address issues relating to insecure work, exploring employment status, a day one right to written terms and conditions for employees and workers and a review of certain agency worker rights and regulation.

Replacing zero hours contracts - The Department for the Economy is considering introducing specific legislation to limit or restrict the use of zero hours contracts and other practices that are detrimental to workers without guaranteed hours. Views were sought on various issues including:

• Whether there should be a ban on zero hours contracts, or if they should be permitted in certain circumstances.
• Whether eligible workers should be able to transition from zero hours contracts to banded hours contracts, if applicable.
• Whether eligible workers should be able to request a more stable or predictable contract.
• Whether the qualifying period to be able to make these requests should be 12 weeks, 26 weeks, or 12 months.

Addressing employment status – There are 3 main types of employment status - employee, worker, and self-employed. There are no specific proposals at this time, but views and evidence are sought to inform policy in this area.

Changes to legislation on dismissal and re-engagement - Essentially, this is further regulation and guidance in fire and rehire practices. Dismissal and reengagement, often referred to as "fire and rehire" is a practice employers sometimes adopt when making changes to terms and conditions of employment. Employees who refuse to agree to proposed new terms are dismissed and re-engaged on the new terms. Views were sought as to whether a) legislation is necessary; b) whether a statutory code of practice should be introduced; c) whether legislation should be introduced to allow remedy for victims by Tribunal.

Other proposals include legislation to ensure a written statement of particulars of all workers, proposals in respect of amendment to Agency Worker Regulations to prevent operators exploiting agency workers.

2. Pay and Benefits

Fair and transparent allocation and distribution of tips, service charges and gratuities controlled by employers. Views were sought on whether to maintain the current position, or introduce legislation to ensure 'tips' are allocated in a fair and transparent manner.

Changes to payslips – views were sought as to whether to extend the right to a pay statement to workers, and whether to require an itemised pay statement to include all information about the number of paid hours worked where pay varies based on time worked.

Potential changes to the holiday pay calculation reference period –views were sought on extending the holiday pay reference Period for workers with variable hours from 12 weeks to 52 weeks, bringing NI in line with the corresponding reference period in GB.

Record keeping requirements – views were sought from employers and workers around record keeping activities in the workplace, and whether government action to bring clarity around the specific records employers should maintain is required.

3. Voice and representation

The focus of this section of the consultation is to examine the issues which affect good workplace relationships, trade union operations and the democratic structures in workplaces more generally. The consultation called for views on:

• Access to workplaces by trade unions (with small or micro business exemptions).
• A reduction in notice to employers of ballots on industrial action from seven days to five days.
• Permitting e-balloting by trade unions.
• Increasing protections for union representatives and employees taking part in industrial action.
• Changing the triggers for rights under the Information and Consultation of Employees Regulations.
• Reducing the threshold for unions to seek formal recognition from 21 to 10 employees.
• Considering the introduction of a collective bargaining code of practice, establishing principles and behaviours to foster more productive working relationships between employers and unions.
• Practical amendments to the TUPE provisions including information and consultation in micro businesses, and removing the concept of split contracts.
• Transparency requirements on whistleblowing to prescribed bodies.

4. Work-life balance

This section of the consultation aims to improve work-life balance but also to improve access to employment. A number of proposals are under consultation. These include:

• Flexible working – views were sought around removing the 26 week qualifying period before a flexible working request can be made.
• Carer's Leave – views were sought around the introduction of one week’s unpaid carer’s leave.
• Neonatal care leave and pay – views were sought on paid additional leave for eligible working parents with babies requiring neonatal care.
• Protection from redundancy – views were sought on introducing further redundancy protection in relation to the right to be offered a suitable alternative vacancy, for pregnant employees and for employees who have recently returned to work after a period of maternity, adoption, or six or more weeks of shared parental leave, with protection lasting for 18 months from birth or adoption.
• Paternity Leave – views were sought as to how and when statutory paternity leave can be taken. It is proposed as a day 1 right.

What does this mean for employers?

With this being the first proposed major change in employment law in Northern Ireland in over a decade it is essential that all interested parties, employers and employees alike, have a say. If you have any questions regarding the consultation please contact Amanda McClimond.

Full details of the proposals and public consultation can be found here.