Employment Rights Bill: Will It Make Work Pay?
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The Employment Rights Bill was introduced to Parliament on 10 October 2024, as part of the Labour government’s plan to ‘Make Work Pay’. The Bill seeks to reform and modernise UK workplaces with more legal protection for employees and a focus on flexibility. We’ll hear more when the Bill is debated later in October but for now here are the key takeaways.
Highlights of the Bill
Day 1 protection against unfair dismissal; no more quick dismissals for anyone under 2 years service. Employees will have rights from their first day of service to ensure they are taken through fair process prior to a dismissal. There are also likely to be more protections around probationary periods too. If passed this will be a considerable change to employment law.
Zero hours right to guaranteed hours; if you are regularly doing hours week by week employees will be able to claim these as guaranteed hours. Misuse of zero hours contracts has been on the radar for many years so this is another big one for the Bill.
Protection against dismissal for refusal of contractual changes; another radical reform employees won’t be seen as resigning if they don’t agree to new contractual terms. A tricky one for employers trying to align historic terms but should prevent fire and rehire practices.
Enhanced access for trade unions; only something for public sector but employers will have to give more access to trade unions supporting their employees and make employees aware of their union options.
More protection for day 1 flexibility; already made law earlier this year, the Bill cements the right for employees to make flexible working requests from day 1 and ensures employers give reasonable reason(s) for denial.
Day 1 rights for family leave, maternity and sick pay; no radical changes for paternity pay but there will be a day 1 right for leave, statutory maternity pay will be a day 1 right as will statutory sick pay. This may encourage some employers to extend their company pay rules also.
Expanded rights for bereavement leave; like paternity no statutory pay enhancements have been proposed but employees will have the right to take time off to grieve, definitely a step in the right direction.
Further protections for whistleblowers including anti-harassment; in line with new sexual harassment protections whistleblowing will take into account those reporting harassment at work. Although employers should have their own safe reporting channels, it provides another route for employees and a level of protection against potential negative consequences of coming forward.
What’s Next
There will be multiple rounds of public consultation, expected into 2025 and 2026.
Immediate consultations will focus on key issues like zero hours contracts, sick pay, and trade union rights. Discussions on contractual changes and unfair dismissal rights will likely follow.
Most of the Bill’s provisions are not expected to come into effect until 2026, giving employers time to prepare for these big changes.
The government have made a number of commitments for ‘Make Work Pay’ which are missing from this Bill, so we can expect more legal change proposals in the coming months and years. Statutory Codes of Practice are likely to address issues such as contacting employees outside of contracted hours. Whilst employment status will be a seperate legaslative reform, with an aim to simplify categories of employment. Another key commitment is the extension of pay reporting to include race and disability demographics, this is likely to be part of the expected Equality Bill.
Any Questions?
If you are an employee wanting to know more about your rights or an employer needing support with your employees, please email for further information or book in a free enquiry with Career Ally.