A Closer Look at the Employment Rights Bill: Key Changes for UK Employers

The Labour government has just announced its promised reform to the Employment Rights Bill. Released yesterday, the first draft aims to strengthen worker protections, improve conditions, and address key challenges like high turnover and low pay. The goal? To create a more engaged, stable, and productive workforce across the UK but what does that mean for UK employers?

The changes

The Bill introduces a set of 28 reforms in total. Key reforms include:

1.  Ending zero-hour contracts and prohibiting the “fire and rehire” practices. Providing employees with the right to guaranteed hours, right to reasonable notice of shift, and payment for cancellation of shifts at short notice.
2.  The reform regarding day-one rights for unfair dismissal removes the current requirement for employees to have worked for a company for two years before qualifying for protection against unfair dismissal. It also introduces day-one rights for paternity, parental, and bereavement leave, expanding existing protections to provide immediate entitlements for workers as soon as they begin their employment.
3. Strengthening statutory sick pay by removing the lower earnings limit and eliminating the waiting period.
4. Flexible working arrangements for employees will become the default option and any refusal by employers will need to be reasonable.
5. Enhancing protections for pregnant women and new mothers, safeguarding them from dismissal. Employers are required to carefully adhere to legal guidelines when managing workforce reductions and performance.
6. Large employers will be required to create action plans to address gender pay gaps and support employees through menopause (applicable to businesses with over 250 employees).
7. Scrapping the two-year qualifying period for unfair dismissal claims, giving workers protection from the commencement of their employment.
8. New probationary period rules to help businesses assess employees while providing new hires with more confidence.
9. Protections from harassment reform mean that employers must take “reasonable steps” to prevent sexual harassment and disclosures related to it. Employers will also be required to take full liability for third-party harassment.

What does this mean for employers?

Employers will have new and greater responsibilities in adhering to the reformed Bill, which aims to modernise the workplace. They will need to revise their employee contracts to ensure they are compliant with the new legislation and potentially change their recruitment procedures, internal policies, and probationary periods.

What’s next?

The second reading of the Bill is due on 21 October 2024. The government also intends to explore further reforms which may include, the right to ‘switch-off’, the requirement for employers to report ethnicities and disability pay gaps, and reviews into parental and carers leave systems. The commencement of the Bill is reputed to be around October 2026.

Contact our specialist Employment solicitors

If you require support today, please get in touch with our employment lawyers on 0330 175 7608 or email employment@ibblaw.co.uk.