Briefing | Proposed employment law changes in Northern Ireland aim to improve workers' rights

Ambitious scope of the 'Good Jobs' Employment Rights Bill 

The 'Good Jobs' Employment Rights Bill consultation has been an extremely in-depth process with over 190 questions posed, making it one of the largest consultations the CIPD has ever responded to.  

The consultation has three core aims. First, it seeks to address many areas of law where Northern Ireland was left behind due to the political stalemates in recent years. Second, it aims to anticipate what the new UK Government would propose in its own bill. And third, it tries to gauge opinion on more significant changes to how our labour market should be structured. The questions were grouped around four key themes that are aligned to the CIPD’s definition of good work that has also been adopted by the NI Department for the Economy. The key proposals, and our views, are summarised below. 

Proposals around zero-hours contracts 

To reduce the risk of one-sided flexibility in zero-hours contracts, the consultation aims to align NI with the rest of the UK by making exclusivity clauses unenforceable. As well as this, it also considers three options:  Banning zero-hours contracts completely, giving employees rights to request a banded hours contract, or the right to request a more stable and predictable contract. 

The CIPD has gathered considerable evidence that shows zero-hours contracts can work for employers as much as for employees who seek the flexibility they provide. That said, the introduction of a right to request a more predictable contract can make a difference to those who feel their contracts simply don’t reflect the reality of their working pattern. 

In addition, the consultation seeks to introduce a requirement for a ‘reasonable’ notice period in advance of shifts, as well as compensation for when shifts are cancelled or curtailed at short notice. 

While the CIPD broadly welcomes these proposals, there needs to be some built-in flexibility for employers so they can respond to short-term changing needs and to allow some employees to pick up shifts at short notice. More generally, the length of the notice period and the amount of compensation should aim to reflect both the needs of the employer and employee. 

Broader shifts in how the labour market is structured are also being consulted on, including questions around the three-tier employment status. The CIPD’s position is that, on balance, the ‘worker’ category should be abolished, and the difference between ‘employed’ and ‘self-employed’ clearly articulated. This would provide more clarity for both employees and employers. However, this should be done carefully and ideally be implemented across the whole of the UK simultaneously to reduce potential issues with the UK-wide tax system.  

Fair pay, holidays and the right to disconnect 

To tackle issues within the area of pay and benefits, the consultation includes a mix of technical proposals (eg changing the holiday pay calculation reference period), those replicating GB or Republic of Ireland legislation (eg allocation of tips and extension of payslips to workers) and new proposals (eg right to disconnect). 

The CIPD supported the approach outlined in the consultation around a fair and transparent allocation of tips, as well as the extension of payslips to workers. Holiday entitlement and holiday pay calculations are complex and can be especially challenging for smaller businesses and those who employ staff in Northern Ireland and Great Britain. With this in mind, the CIPD supported the introduction of a 52-week reference period. 

However, the consultation did not include proposals to specifically address part-year or irregular hours workers, where further differences exist in relation to rolled up holiday pay and annual leave accrual.  

Our consultation response also highlighted some of the potential risks and challenges with a right to disconnect. As the right itself will not address the underlying issues that drive people to worry about work during weekends or evenings, we would support a statutory Code of Practice, and the promotion and adoption of good practice, but highlight that the key solution is to ensure that managers manage employees’ workloads effectively. With this in mind, providing people with flexible working opportunities that promote a healthy work-life balance should be seen as an equally important priority.  

New powers for unions and collective voice 

Aside from relatively technical areas like the Transfer of Undertakings Protection of Employment (TUPE) rights or whistleblowing, the consultation also includes proposals regarding collective voice, primarily via strengthening trade unions. It suggests lowering the statutory recognition threshold, boosting workplace access rights, shortening industrial action notification periods and improving protections for employees and representatives. The ambitious and wide-ranging approach of these proposals would constitute a considerable shift in employee relations legislation. 

Some of the measures bear a striking similarity to those included in UK Government’s Employment Rights Bill, so it is likely that the Northern Ireland Executive will keep a close eye on how the bill works its way through the Westminster legislative process. One key area of learning for both employers and employees will be around the proposals for access rights, which may be a seismic shift in employment relations for many businesses who are not used to dealing with trade unions. 

Any changes need to be managed carefully and implemented gradually, with adequate time and guidance given to companies to adjust their internal relationships with trade unions, to help any new legislation to succeed in strengthening employee voice. Otherwise, there is a risk that new rights of access for unions could be counterproductive and not be a platform for more effective employee voice and productive partnership working.  

Flexibility and support for workers 

Proposals are included that primarily seek to align Northern Ireland with provisions already in place in Great Britain including the day-one right to request flexible working, new carer’s leave, new neonatal care leave and pay, enhanced redundancy protections and boosted paternity leave. 

The CIPD has been active in scrutinising similar legislation in recent years in GB, although there are areas where the consultation seeks to go further (eg longer paternity leave), as well as areas where it has been overtaken by proposals in the UK Government’s Employment Rights Bill (eg flexible working by default). 

Next steps and key timelines 

Despite its scale, there are policy measures that did not make it into the consultation. Some, like reforms to Statutory Sick Pay or pay gap reporting, are the responsibility of the Department for Communities. Others, like changes to parental leave or bereavement leave, are likely to be introduced in the bill itself. 

The Department for the Economy is currently analysing the 192 responses it received, while undoubtedly keeping an eye on proceedings in Westminster. We expect to see a bill introduced in early 2025, which will start another round of detailed consultation. The CIPD looks forward to connecting our members with the department on this.