The long-waited and recently published Employment Rights Bill ('the Bill') introduces substantial reforms that will impact both employers and employees in the UK. On the 10th of October the Government fulfilled its promise to introduce reforms to employment law within 100 days of office. The bill comprises of 28 new reforms across 150 pages. Although the devil will be in the detail over the coming months with consultation documents to follow, here are some of the key takeaways: 

Key Reforms

1. Day-One Employment Rights:
   • Unfair Dismissal Protection: Currently, employees must have worked for their employer for a minimum of two years before they qualify for the right to claim 'ordinary' unfair dismissal at a tribunal. Under the Bill, the current two-year qualifying period of employment will be removed. Employees will gain protection from unfair dismissal from their first day of employment. It is anticipated that employers will be allowed to operate a probationary period, during which they will have greater flexibility to terminate newly hired employees. The Government has indicated a preference that the maximum probationary period be up to nine months, though this is subject to consultation.
   • Paternity Leave and Bereavement Leave: Rights to Paternity Leave and Bereavement Leave will be effective immediately. Currently, there is no statutory right for employees to take Bereavement Leave following a death (except for parents who lose a child aged under 18), and an employee must work for their employer for 26 weeks before they are eligible for Paternity Leave. Making both Paternity Leave and Bereavement Leave a 'Day 1' right brings these types of leave into alignment with other paternal leave entitlements such as Maternity Leave and Adoption Leave.
2. Statutory Sick Pay: 
   • Currently, in order to be eligible for statutory sick pay, an employee must have average weekly earnings at or above the Lower Earnings Limit and those who are eligible are only paid from their fourth day of sickness absence. The Bill intends to remove the requirement to earn at or above the Lower Earnings Limit and remove the waiting days meaning everyone is eligible for Statutory Sick Pay from the first day of sickness absence. This change is intended to support all employees to take the time off they need to recover by providing better financial security.
3. Zero-Hours Contracts:
   • Workers with consistent hours over a designated period will be entitled to guaranteed hours, aiming to reduce exploitation of zero-hour contracts while still offering flexibility and providing a baseline of security for workers. Employees will also be entitled to reasonable notice of shifts and compensation for short-notice cancellation of shifts.
   • Employers relying on zero-hour contracts should look at evaluating their practices to adapt to these changes.
4. Fire and Rehire Practices:
   • Stricter rules against fire and rehire methods will be enacted. 'Fire and rehire' is essentially a way that an employer can attempt to change an employee's terms and conditions where their consent has not been successfully obtained. The Government aims to 'limit the use of fire and rehire tactics that leave working people at the mercy of bullying threats.' The Bill will restrict employers' ability to use fire and rehire by amending the law on unfair dismissal so that, where employees are dismissed for failing to agree to a change in their contract of employment, those dismissals will be treated as automatically unfair, unless the employer can show evidence of financial difficulties and demonstrate that the need to change the contractual terms was "unavoidable".
   • Employers should review their contract variation procedures to ensure adherence to new consultation obligations.
5. Flexible Working:
   • Flexible working will become the default option, allowing employees to request arrangements easily. Employers must provide valid reasons for any refusals.
6. Protections for Pregnant Employees:
   • Enhanced protections against dismissal are introduced for pregnant employees and those returning from maternity leave. Dismissals within six months of returning will generally be unlawful, with some exceptions.
7. Addressing Sexual Harassment:
   • Employers will be liable for harassment by third parties and are required to take 'all' reasonable steps to prevent such occurrences. Third parties include, for example, clients and customers. Furthermore, reporting sexual harassment will also amount to a protected disclosure for whistleblowing purposes.
8. Creation of a Fair Work Agency:
   • A new agency will be established to enforce employment rights, conduct workplace inspections, issue fines, and initiate civil proceedings on behalf of workers. The Fair Work Agency ('FWA') will bring together existing state enforcement functions and, over time, take on enforcement of a wider range of employment rights and will be a single place where workers and employers can turn for advice. The implementation of the FWA will be subject to consultation.
9. Extensive changes to Trade Union laws:

• The New Bill contains a significant number of provisions concerning trade unions with the aim of giving trade unions 'greater freedom to organise, represent and negotiate on behalf of their workers'. We will update you as more details become available. 

Implications for Employers and Employees

• Employers: Should prepare for the changes by reviewing their existing management practices and reassessing employment contracts to ensure compliance with new regulations. This may also include adjusting hiring processes, and workplace policies related to harassment and flexible working.
• Employees: Employees will benefit from enhanced protections and rights, allowing for greater job security and better work-life balance. For example, employees can expect more support during parental leave and protections against unfair treatment in the workplace.

Next Steps

The Government will consult on several of the proposed measures in 2025, meaning that many of the most significant will not take effect until Autumn 2026.

The Government has also published a Next Steps document that outlines reforms it will look to implement in the future. 

The Employment Rights Bill introduces significant reforms to UK employment law. Both employers and employees will need to carefully consider and adapt to these changes. Staying informed about the details of these reforms as they progress through the consultation process and subsequent implementation is crucial. Employers should prepare for the implementation of the proposed changes and consider providing training for HR and management teams. Our employment law training courses, led by specialists, offer the latest best practices and can be conducted in person or remotely. Having an experienced legal team on your side is invaluable as the impact of this Bill extends across all sectors. We offer tailored solutions that can make a real difference for your business, providing clarity and peace of mind. Contact us at 0141 221 1919 to discuss your specific needs. We understand that every business is unique and are committed to delivering solutions that meet your needs. You can trust us to support you through these changes.