The Employment Rights Bill introduces significant changes to worker protections in the UK, marking the largest update in a generation.
- The Bill aims to extend unfair dismissal rights from day one, moving away from the current two-year requirement.
- Flexible working is set to become the standard, with specific conditions where employers may refuse requests outlined.
- Elimination of zero-hour contracts is prioritized, offering workers the security of guaranteed hours when preferred.
- Large employers will be mandated to address gender pay gaps and support employees undergoing menopause.
The introduction of the Employment Rights Bill represents a major shift in worker protections and rights within the UK, heralded as the most extensive update in a generation. Key proposals include granting unfair dismissal rights from the first day of employment, challenging the current requirement of two years of service. A proposed statutory probation period of nine months will allow employers to assess suitability while maintaining a “lighter-touch” approach in employment termination, though reforms won’t be enacted until 2026. Noteworthy is that existing protections already cover dismissals related to whistleblowing or health and safety from day one.
Flexible working conditions will become the default position under the new Bill, significantly changing the current employment landscape. Employers will need to demonstrate reasonable business grounds to reject such requests. The expansion of parental rights is also in focus, proposing that parental and paternity leave become accessible from the outset of employment, whereas the current policy requires substantial lengths of service.
Regarding zero-hours contracts, the Bill seeks to address the desire of 84% of workers who prefer predictable schedules. Employees working regular hours over a defined period will gain the right to guaranteed hours, although zero-hours contracts remain an option if the workers choose so. Additionally, workers will have rights to reasonable shift notifications and compensation for last-minute changes or cancellations.
The Bill further aims to curtail exploitative employment practices by restricting the “fire and rehire” tactics currently used to impose less favorable contract terms. Dismissals due to non-agreement to contract variations will be deemed automatically unfair unless they are essential for business continuity with no viable alternatives.
Under new sick pay provisions, the existing lower earnings limit and three-day waiting period for Statutory Sick Pay (SSP) will be eliminated, ensuring that SSP is available from the first day of sickness absence. The proposed legislation introduces a duty for employers to prevent sexual harassment effectively, with potential detailed guidelines for compliance.
The Bill specifies collective consultation obligations, clarifying that the requirement applies once the total number of dismissals across an organization hits the threshold, instead of being limited to individual establishments. Additionally, large organizations will be tasked with creating action plans to tackle gender pay gaps and assist employees through menopause, demonstrating a commitment to addressing workplace inequalities.
There is also a significant shift towards combining the roles of multiple enforcement bodies into a single Fair Work Agency, aiming for streamlined and effective labor law enforcement. This consolidation intends to provide a unified approach to oversight, enhancing accountability and worker protections. However, some areas such as the right to “switch off” and ethnicity and disability pay gap reporting have not been included in this Bill but are part of broader governmental plans.
The Employment Rights Bill represents a comprehensive approach to modernizing the UK labor market with a focus on fairness and equality.
