Employments Rights Bill | The Proposed 28 Measures Outlined
On Thursday, October 10th, the UK government published its much-anticipated Employment Rights Bill (ERB), part of Labour’s commitment to the Plan to Make Work Pay. The bill introduces measures that aim to overhaul employment laws, though key areas like the proposed single-worker status remain under review, with further consultations set to continue into 2025. Most of these changes won’t be enacted until 2026, providing businesses with time to prepare.
Here at Owen Daniels, we are committed to supporting our clients through these changes and helping them navigate the evolving landscape of employment law.
Key Areas of the Employment Rights Bill:
Zero-Hours Contracts
The bill introduces provisions to prevent the exploitation of zero-hours contracts. Workers on zero and low-hours contracts will have the right to move to contracts reflecting their regular hours, with a 12-week reference period and reasonable notice for shift changes. Additionally, the government has announced plans to consult with businesses to ensure these provisions are applied fairly, particularly to agency workers.
Protection from Unfair Dismissal
The bill introduces unfair dismissal protection from day one of employment. However, a 9-month probation period is proposed, during which employers can dismiss staff based on performance, provided that a performance review has taken place. This aims to balance worker rights with employer flexibility.
Statutory Sick Pay (SSP) Changes
One of the more impactful reforms is the removal of the lower earnings limit and the 3-day waiting period for SSP. The government recognises that these changes could increase costs for smaller agencies, especially those managing large temporary workforces, and will consult further on how these rules should apply to agency workers.
Flexible Working
Flexible working will become the default for all employees unless employers can demonstrate a valid business reason to deny a request. The bill sets out eight business reasons that can justify a rejection, consistent with current rules. However, further consultation will determine how employers should process such requests.
Fire and Rehire Practices
The bill proposes reforms to end the controversial practice of "fire and rehire" by allowing workers to claim compensation if they are dismissed without following a proper redundancy process. Although the specifics are still under consultation, businesses will retain the ability to restructure when absolutely necessary.
Parental, Paternity, and Bereavement Leave
Parental and paternity leave will become a day-one right, eliminating the need for qualifying periods. A broader review of the parental leave system will follow, aimed at making it more accessible. Bereavement leave will also be expanded beyond parents.
What’s Not in the Bill?
Notably, the government did not include the Single Worker Status proposal, which would merge the current employment statuses of employees and workers. This remains under long-term consideration, but its exclusion from the ERB allows for further consultation.
Additionally, the proposed Right to Switch Off—a policy preventing employees from being contacted outside of working hours—was not included in the bill. Instead, the government will introduce a statutory code of practice, which is likely to offer businesses more flexibility.
Next Steps and How We’re Involved
The Employment Rights Bill is expected to progress through Parliament over the next year, with Royal Assent anticipated by summer 2025 and implementation following in 2026. At Owen Daniels, we are staying actively involved throughout this process. Our industry experience and insight, ensures we provide our clients with the most up-to-date advice.
We are here ready to support our clients when required. Whether you’re concerned about zero-hours contracts, unfair dismissal, or parental leave rights, our team is here to offer the support and guidance you need.
For further resources, visit the UK Recruitment and Employment Confederation (REC) here and the official Government Legislation pages here.
Let us be your trusted partner as we navigate these changes together, ensuring your business is compliant, efficient, and ready for the future of work.
