In October 2024, the UK government launched a groundbreaking Employment Rights Bill with changes that promise to reshape the workforce landscape. From pay adjustments and enhanced leave entitlements to new anti-harassment mandates, this Bill is set to bring transformative change across businesses. Here’s a look at what these new standards mean for employers and how to start preparing now.
Building a Fairer Workplace: Key Changes
The Employment Rights Bill is part of the government's commitment to making work fairer and safer, spanning five major areas:
1. Strengthened Protections Against Unfair Dismissal
One of the most notable changes is the shift in unfair dismissal protections, which now apply from day one rather than after two years of employment. However, a probation period will still apply, with the exact length to be determined through consultation. Additionally, the controversial "fire and rehire" practice—where employers dismiss and re-engage staff to alter contract terms—will be largely prohibited, only allowed in cases of dire financial necessity.
2. Pay and Sick Leave Reforms
For the first time, Statutory Sick Pay (SSP) will be available from the first day of illness without any minimum earnings threshold. Large employers with over 250 employees are also now required to establish action plans to address gender pay gaps, moving beyond reporting to take concrete steps toward reducing pay disparities. The Low Pay Commission has also been tasked with setting a single minimum wage for all ages based on the cost of living—a significant shift from previous age-tiered rates.
3. New Time-Off Entitlements
The Bill introduces several essential time-off rights, including bereavement leave from the first day of employment. Parental and paternity leave will also become available immediately for new employees, removing the one-year and 26-week minimum requirements previously in place. Additionally, flexible working is set to become the default, meaning employers must show specific and reasonable grounds for denying flexible work arrangements.
4. Fairer Contracts for Zero-Hour and Low-Hour Workers
Workers on zero-hour and low-hour contracts will benefit from greater security with the right to guaranteed hours contracts based on their average working patterns over a defined period. Employers will also need to give these workers reasonable notice for shifts, along with compensation for last-minute cancellations or schedule changes, adding a layer of predictability for those in non-traditional roles.
5. Expanded Responsibilities for Workplace Equality and Anti-Harassment Measures
The Bill strengthens requirements for employers to prevent workplace harassment, including harassment from third parties, by requiring them to take “all reasonable steps” to ensure safety. For large employers, this duty extends to supporting employees experiencing menopause and creating actionable plans to close gender pay gaps.
What’s Next for Employers?
While the Employment Rights Bill has entered the parliamentary process, its implementation is not expected until 2026. This gives employers time to adapt, but it’s wise to start planning now. Key areas for immediate attention include reassessing contracts, updating HR policies around harassment and leave, and initiating action plans for pay gap reductions.
Employers should also keep an eye on several additional long-term changes proposed by the government, including:
- Right to Disconnect: Employees may soon gain the right to disconnect from work after hours, a crucial development in the era of remote work.
- Carer’s Leave Review: Proposed adjustments aim to better support employees with caregiving responsibilities, adding flexibility and protections.
- Equal Pay for Outsourced Services: Future regulations may prevent employers from using outsourcing to bypass equal pay obligations.
Preparing for a Future-Ready Workplace
The Employment Rights Bill presents employers with both challenges and opportunities to create a more inclusive, equitable, and flexible workplace. Start by reviewing current policies, ensuring HR practices align with the proposed changes, and fostering open communication with employees about their rights and responsibilities.
By embracing these shifts, employers can not only comply with upcoming laws but also attract and retain top talent in a competitive market where workplace culture and fairness are paramount.
Author: Erika Marveggio, HR Generalist