FAQs For Settlement Agreements | Paddle & Cocks LLP

How the New Employment Rights Bill will Strengthen the Employees Employment Protections. By Harjit Gill The upcoming Employment Rights Bill proposes significant changes to the protections employees enjoy in the workplace. If the individual is an employee, understanding how this new Bill will affect an employee’s rights is essential. This article focuses on the key changes relating to unfair dismissal. Key Changes in the New Bill Day-One Protection Against Unfair Dismissal Under the current rules, employees must work for an employer for two years before they can claim unfair dismissal, unless it relates to pregnancy, whistleblowing or trade union membership. This means that if the employer dismisses the employee in the first two years, the employee will have limited recourse to challenge that decision. The two-year qualifying period for unfair dismissal claims will be abolished, and the employee will have the right to challenge an unfair dismissal from the first day of their employment. This change will provide the employee with greater job security and protection, ensuring that employers cannot dismiss the employee arbitrarily during their early employment. New Statutory Probation Period Along with the introduction of day-one protection, the Bill proposes a statutory probationary period of nine months. During this probationary period, employers will have to follow a simplified process for dismissal if they feel that the employee is not the right fit for the role. The government are yet to detail what this process involves but it will definitely be subject to the rules of fairness. After the nine-month probationary period, full protections against unfair dismissal will apply and employers will be required to follow a more rigorous and fair process to dismiss their employees. Right to Written Reasons for Dismissal Currently, the employee must have worked for an employer for two years to request written reasons for the employee’s dismissal. Under the new Bill, this will change. The employee will be able to request written reasons for your dismissal after the nine-month probation period. This ensures that if the employee is dismissed after this period, the employer must provide a clear and written explanation, giving the employee transparency and the ability to assess whether the dismissal was fair. Impact on Your Job Security These changes will significantly improve the employee’s job security, particularly in the early months of employment. Previously, many employees had limited rights during their first two years on the job. Employers could dismiss employees without the need to provide reasons or follow formal procedures unless the employee’s dismissal fell under “automatically unfair” reasons like discrimination or whistleblowing. With day-one protection, employees will have immediate access to employment rights that ensure their employer must act fairly if they choose to dismiss the employee. This change will particularly benefit the 9 million workers in the UK who have been with their employer for less than two years. While these changes offer employees stronger protections, it’s important to understand that employers will still have flexibility and can insert a longer probationary period than what is proposed in the employees’ contract, especially for more complex roles. However, once the statutory nine-month probationary period is complete, the employee will be fully protected by unfair dismissal laws. This means that any dismissal must follow standard procedures and be based on legitimate reasons, such as performance issues or misconduct. When Will These Changes Happen? The reforms in the Employment Rights Bill are expected to take effect no sooner than autumn 2026. This gives employees time to prepare for these changes, while also giving employers time to adjust their policies. However, it’s essential to be aware of these changes now, so employees understand the rights they will have when the Bill becomes law. Conclusion The Employment Rights Bill is set to transform the protections employees enjoy, particularly regarding unfair dismissal. From day-one protection to the introduction of a statutory probation period, their rights as an employee will be strengthened, offering greater security, in the employees first year on the job, helping to create a fairer and more balanced workplace for all. If you require any further information or legal advice on any of the points raised, please contact Harjit Gill on harjit.gill@paddleandcocks.co.uk or telephone 0333 344 9429 quoting HG. *The above highlights some of the changes the Bill is intended to bring about and is not intended to provide legal advice which should be relied on.

Renters’ Rights Bill 2024 – A brief overview of proposed changes By Justine Benbough What is it? Proposes changes to the UK rental market Likely to come into force Spring 2025 Current ASTs likely to become periodic assured tenancies overnight Key Changes Abolishes fixed term assured shorthold tenancy Replaces this with a periodic assured tenancy Abolishes non fault evictions (the old Section 21 procedure) Requires landlords to prove grounds for eviction under Section 8 Section 8 Grounds for Possession Makes changes to existing grounds Introduces new grounds Introduces longer notice periods No longer accelerated ‘paper’ procedure In person possession hearings only Rent Arrears (Ground 8) Remains a mandatory ground but now tenants must be at least 3 months (13 weeks) in arrears (no longer 2 months/8 weeks) Landlord to give 4 weeks’ notice (no longer 14 days) Student Accommodation Applies to full time students living in an HMO Possession can be obtained under Ground 4A Require landlords to serve prior notice of intention to relet to students at start of new academic year Section 8 notice to end tenancy must give 4 months’ notice to expire within the holiday period (1st June and 30th September) Pets & Discrimination Cannot be a barrier to renting Landlord cannot unreasonably refuse Rent Reform Introduces a bar on rent bidding Rent review clauses no longer apply Introduces rent increase mechanism and procedure for challenging Landlords’ Duties To provide tenants with written statement of terms and certain information Non-compliance with landlord’s duties and rules on service of notices can lead to financial penalties Expands Awaab’s Law to private sector Local Authority Powers Increased by enforcing civil penalties for landlord’s failing to comply with the regulations Landlord Redress Scheme Landlord required to register with scheme Deals with tenant complaints If you require any further information or legal advice on any of the points raised, please contact Justine Benbough on justine.benbough @paddleandcocks.co.uk or telephone 0333 344 9429 quoting JEB. *The above highlights some the changes the Bill is intended to bring about in bullet point form only and is not intended to provide legal advice which should be relied on

The Seed Enterprise Investment Scheme (SEIS) is an initiative designed to stimulate economic growth and innovation by encouraging investment in small, early-stage companies.

In the following article, we’ll outline the range of benefits of commercial lawyers and explain why they’re essential for your small business.

The shareholders in a business can be very influential, no matter what share they have in it. Here are a few tips to help resolve shareholder disputes.

Paddle & Cocks is frequently contacted by people who are confused about the process of selling a business. Here is more information about the process.

Corporate law is often a nuanced and challenging subject to understand. So check out this blog and we’ll sum up commercial dispute resolution simply.

Ensuring that your business has a strong shareholders’ agreement in place is the key to corporate operations running smoothly in the long term.

If you have been given a settlement agreement this allow Paddle & Cocks LLP to take you through the process and answer common questions.