On October 10, 2024, the UK government introduced the long-awaited Employment Rights Bill 2024, signalling a major shift in employment law that will impact workforce management and daily operations. This Bill, built on Labour’s core commitments, aims to strengthen protections for employees across the UK.
In this overview, we’ll break down the current legal framework, outline the Bill’s most significant updates, and share when employers can expect these changes to take effect. While the government plans to begin consultations in 2025, most of the reforms aren’t expected to roll out until at least 2026. This timeline gives employers sufficient opportunity to review and update workplace policies, ensuring they’re prepared to meet the new standards in employment law.
Under existing regulations, employees can access statutory sick pay (SSP) if they have been ill for at least four consecutive days. SSP provides £116.75 per week for up to 28 weeks, available to employees earning £123 or more per week.
Proposed Change:
With the new reforms, all workers will now be able to access sick pay from the very first day they’re off sick, including those who earn less than the current threshold of £123 per week. However, those earning below this amount may receive a reduced rate of statutory sick pay (SSP).
Currently, employees need to complete two years of continuous employment to gain the right to pursue an unfair dismissal claim against their employer. This rule allows probationary periods to stretch up to two years, during which employers can terminate employment without facing claims of unfair dismissal.
Proposed Change:
The new Bill introduces a “day one” right, enabling employees to file unfair dismissal claims from the start of their employment. This shift means that employers may need to review their hiring and probation processes, as dismissing employees will carry greater legal responsibilities from day one. The Government will consult on what will be a fair process and the length of probation period.
A zero-hour contract allows employers to offer work with no guaranteed minimum hours, so workers may have highly variable hours from week to week. At the moment, there are no statutory restrictions on these contracts, giving employers significant flexibility to adjust hours based on their needs.
What’s Changing?
The Bill now labels zero-hour contracts as potentially exploitative. Employers will no longer be able to impose “one-sided flexibility” on zero-hours workers. Instead, if a worker has worked consistent hours over a 12-week period, the employer must offer a guaranteed-hours contract. Additionally, workers will have the right to reasonable notice of shifts and compensation for any cancellations made without sufficient notice.
“Fire and rehire” refers to employers dismissing staff and immediately rehiring them under new, often less favourable, contract terms. Although controversial, this practice has been allowed, with a Code of Practice in place advising employers to consider all other options before resorting to this method.
What’s Changing?
The Bill aims to curb the use of “fire and rehire” practices, allowing it only as a last resort in cases where business restructuring makes it unavoidable. Although it doesn’t outright ban the practice, the Bill reforms existing laws to give employees stronger protections. Under these new rules, dismissing an employee solely for refusing a contract change will be considered automatically unfair, except in specific, defined circumstances. However, these new rules won’t come into effect until autumn 2026, so the current qualifying period for unfair dismissal claims remains in place until then.
At present, all women are eligible for up to 52 weeks of maternity leave. However, to qualify for Statutory Maternity Pay, they must have worked with their employer for at least 26 weeks and earn an average of £123 or more per week. New fathers or partners are also entitled to paternity leave if they have been employed for 26 weeks and provide sufficient notice. Additionally, parents have leave rights in cases of stillbirth after 24 weeks of pregnancy or if the child is born alive at any time during the pregnancy.
Mothers have additional protection from redundancy during maternity leave and for six months after returning to work. Pregnant women, those on maternity leave, and those in their first six months back at work have stronger job security, with dismissals limited to specific, defined situations.
What’s Changing?
New “day one” rights will apply to fathers and partners, providing immediate access to paternity leave without any waiting period. Unpaid parental leave will also be available from day one, along with paid bereavement leave, giving employees a week off for the loss of close family members other than their children. For employees returning from any family leave, the Bill strengthens their right to claim unfair dismissal if needed.
Trade Union Reforms:
The Bill rolls back previous restrictions on trade unions, making it easier for them to operate within workplaces. The changes include lifting restrictions on industrial action, enabling electronic voting for union matters, and placing a duty on employers to regularly inform employees of their right to join a union. It also simplifies the union recognition process and removes current voting thresholds, making it easier for unions to be officially recognised.
Equality Action Plan:
Employers with more than 250 employees (excluding public authorities) will be required to create an “equality action plan.” This plan, aimed at addressing workplace gender inequality, will outline steps to close gender pay gaps and support female employees, particularly around menopause-related needs. This initiative is designed to promote inclusivity and diversity across UK workplaces.
Fair Work Agency:
The Bill establishes a new Fair Work Agency with enforcement powers related to holiday pay and the minimum wage. This agency will be able to issue fines to employers who violate workers’ rights and will have the authority to inspect premises and collect evidence as needed.
Sexual Harassment Prevention Duty:
From October 26, 2024, employers are now required to take reasonable steps to prevent sexual harassment in the workplace. This new “positive duty” places responsibility on employers to recognise and act against potential harassment.
With such sweeping reforms on the horizon, employers should start reviewing their policies and procedures now to ensure they comply with the new laws as they roll out. Though most changes won’t be mandatory until 2025, these updates represent a significant shift in UK employment law, and early preparation will make the transition smoother.
In short, the Employment Rights Bill brings significant changes but is being introduced in phases to ease the burden on businesses. Preparing your business will take some initial effort, but it can ultimately improve employee satisfaction, reduce turnover, and ensure compliance. Starting preparations now by reviewing policies, training managers, and communicating with staff will set you up for success as the new laws come into force.
Keep an eye out for government updates to stay informed and contact HPC if you need help navigating these changes.
To find out more information or if you require any advice regarding the Employment Rights Bill please get in contact with our team of experts.
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