Following the Labour Government’s commitment to reform employment law within 100 days of assuming office, the Employment Rights Bill was published on 10th October 2024, just two days ahead of the promised deadline.
While these changes will not take effect immediately, implementation is expected in 2026 following a series of consultations. The reforms aim to promote economic security and growth for businesses, workers, and communities across the UK.
Accompanying the Bill is a document titled “Next Steps for the Plan to Make Work Pay”, which outlines the Government’s strategy for implementing employment reforms. In this, the Government highlights its belief that there is a need to modernise the employment rights framework to kickstart economic growth and improve living standards.
This includes specific reforms to ensure job security, fair treatment, and decent wages, while further plans will address economic inactivity in the upcoming “Get Britain Working” paper.
Read on to learn more about the bill and how it could affect you.
The Employment Rights Bill 2024:
Key Changes Explained
Family-Friendly Rights
The reforms aim to make workplaces more accommodating to workers’ personal lives by improving flexibility and security.
- Flexible working will become the default option wherever feasible.
- Entitlements to paternity leave and unpaid parental leave will be available from day one of employment.
- Bereavement leave will be extended to all employees, not just parents.
Read more: Taking Time Off Work for a Funeral: What Are My Rights?
- Large employers will be required to create action plans to address gender pay gaps and to support employees going through menopause.
- Protections against dismissal will also be strengthened for pregnant women and new mothers.
Statutory Sick Pay (SSP)
The Bill also includes provision to remove the lower earnings limit, making SSP accessible to all employees.
Additionally, the three-day waiting period before SSP is paid will be eliminated, allowing employees to receive SSP from their first day of sickness.
Zero-Hour Contracts
The Bill includes measures aimed at preventing the exploitation of zero-hours contract workers, introducing new provisions for a right to guaranteed hours, reasonable notice of shifts, and compensation for last-minute cancellations or changes to shifts.
Qualifying Periods for Unfair Dismissal Claims
The Bill aims to remove the current two-year qualifying period for protection against unfair dismissal, granting employees these rights from their first day of employment.
The Government also plans to consult on a new statutory probation period for new hires, aiming to give businesses the flexibility to assess employee suitability while ensuring immediate rights for employees from day one.
Fire and Rehire Practices
An important update concerns fire and rehire practices. Under the new Bill, dismissals will automatically be deemed unfair in some instances. For example, if the dismissal is primarily due to an employee’s refusal to agree to changes to their contract or to enable the employer to hire someone else under new terms but with similar duties.
There will be a limited exception if an employer is forced to rehire on less favourable terms to avoid severe financial difficulties as this would jeopardise the continuation of the business. This is provided that significant consultation has taken place.
Collective Redundancy Consultation
The Bill closes a loophole in collective redundancy consultation by ensuring that the threshold of 20 employees for redundancy consultation applies across the entire business, not just a single establishment. This change aims to strengthen employee protections while maintaining employers’ obligations during redundancy processes.
Third-Party Harassment
The Bill also introduces direct liability for employers if they fail to take all reasonable steps to prevent third-party harassment of their employees. This raises the standard from the previous requirement of merely taking reasonable steps.
Employers will be required to carry out risk assessments, implement policies, and establish clear procedures for reporting and addressing complaints.
Sexual harassment will also be added to the list of issues that workers can report through protected disclosures.
Howells Can Help You to Prepare for This Change
These changes are not imminent and may be subject to change after consultation has taken place. But, if you are an employer, it is important to prepare for upcoming changes and ensure full compliance with the new requirements at the time that they become live.
This might mean amending contracts of employment, amending staff handbooks or introducing new policies, training line managers and other staff, or introducing new ways of working.
We can assist you with preparing for all these changes as and when they happen. However, in the interim, if you have any questions regarding specific reforms and how they may impact your business, please feel free to contact our friendly and knowledgeable employment law solicitors, who are here to help guide you through these changes.
