The Employment Rights Bill, published on 10 October 2024, marks a significant step in reshaping employment legislation in the UK. Aimed at enhancing worker protections, the Bill introduces several reforms that employers need to be aware of. Many of the policies within the Bill will be provided through regulations after the Bill receives Royal Assent. Consultations will commence in 2025, and the majority of the provisions will take effect no earlier than 2026. This article provides a summary of the key provisions, next steps, and practical advice on how businesses can prepare for these changes.
Key Provisions of the Employment Rights Bill
Bereavement Leave
- The Bill extends bereavement leave to all workers, adapting the existing parental bereavement leave framework to cover other close relationships. The specific qualifying relationships will be outlined in future legislation.
- What this means for employers: No immediate action is required, but employers should prepare to update their policies when the new rules are introduced.
Day-One Rights
- Basic employment rights, including protection from unfair dismissal, paternity leave, and parental leave, will be available from the first day of employment. The Government are also considering introduction of a Statutory Probation Period, the length of which will be agreed during consultation, although the government have indicated that their preference is for this to be nine-months.
- Impact: Employers will need to review and update their contracts and policies to reflect these day-one rights, in preparation for the changes.
Fire and Rehire
- Dismissing an employee to rehire them under different contractual terms will become automatically unfair unless the employer can prove the change was necessary due to financial difficulties threatening business viability.
- Next steps: While there is no immediate change, employers should ensure they follow existing dismissal procedures, and that they are aligned to the ACAS code on Grievance and Disciplinary Procedures and be ready to adapt when the new legislation is implemented.
Zero-Hours
- The Bill introduces new rights for zero-hours and low-hours contract workers, granting them a guaranteed hours contract if they work consistent hours over a defined period (initially proposed as 12 weeks). Workers also gain the right to reasonable notice of shifts and compensation for cancellations.
- Employer preparation: Employers using zero-hour contracts should assess current practices and prepare for the costs and logistical requirements of providing consistent hours or compensating changes
Flexible Working
- The legislation contains provisions to make flexible working the default position from day one. Employers will need to justify any refusal based on specified grounds and provide a written explanation, as to why their refusal is reasonable.
- Employer preparation: Employers may wish to conduct an internal audit to identify roles where flexible working may be challenging and consider how to accommodate flexibility where possible.
Equality Action Plans
- Employers with over 250 employees must create and publish an equality action plan, addressing gender equality and providing menopause support.
- Action point: If not already in place, and you have over 250 employees, develop a gender pay gap action plan and consider implementing it ahead of the legal requirement.
Maternity and Family Leave Dismissal Protection
- The Bill extends enhanced protection against dismissal for employees on maternity or other statutory family leave, and for six months following their return.
- What to do: Prepare to update your dismissal and family leave policies and ensure managers are trained on this new protection once it’s in force.
Harassment
- Reintroducing employer liability for third-party harassment, the Bill requires employers to take all reasonable steps to prevent harassment based on protected characteristics.
- Prepare now: Begin assessing potential risks and implementing measures to prevent third-party harassment, such as providing training and revising workplace policies.
Sick Pay Entitlement
- The Bill proposes changes to statutory sick pay (SSP) by removing both the lower earnings limit and the current three-day waiting period for eligibility. This means that all employees, regardless of earnings, will be entitled to SSP from their first day of sickness absence.
- What this means for employers: Employers will need to update their sick pay policies and procedures to align with these new requirements, ensuring that payroll systems are adjusted to provide SSP without delay. Preparing in advance will help ease the transition when these changes come into effect.
Trade Unions and Industrial Action
- Trade unions gain increased access to workplaces and reduced thresholds for recognition and support. Protections for industrial action include repealing certain supervisory and liability requirements, expanding “blacklisting” protections, and safeguarding against detriment for participating workers.
- What to do: Employers should update documentation on trade union rights and ensure compliance with updated industrial action protocols
Collective Redundancies
- The Bill broadens collective redundancy requirements to include proposals affecting multiple locations rather than limiting to a single establishment.
- Employer preparation: Businesses with multiple sites may need to adjust consultation practices and prepare for expanded obligations in future redundancy exercises
Next Steps for Employers
Although many reforms from the Employment Rights Bill will not take effect until 2026, employers should familiarise themselves with the proposed changes and have a plan in place to ensure that they are ready for when the changes take place.
- Policy Updates: Review and update workplace policies in line with day-one rights, sick pay entitlements, flexible working, and anti-harassment measures.
- Manager Training: Train managers on the forthcoming changes, especially on day-one rights and harassment.
- Audit and Action Plans: Conduct an internal audit of your flexible working arrangements and gender pay gap status. If you have over 250 employees and don’t already have a plan in place to close your gender pay gap, you should consider getting your plan in place now, ahead of the legislative changes.
- Consultations and Compliance: Get ready to engage in consultations with trade unions or employee representatives where required and have a process in place for electing employee representatives, if you don’t already have one.
Conclusion
The Employment Rights Bill will bring substantial changes to UK employment law, offering greater protections for workers. Employers should stay informed and proactive in adapting to these upcoming regulations to ensure compliance and maintain a supportive workplace.
By taking early steps, such as reviewing policies and providing training, businesses can reduce disruption and position themselves as responsible employers as the legislative landscape changes.