On 10 October 2024, the Employment Rights Bill was laid before Parliament (Press release and Explanatory Notes). The Bill includes many of the employment law reforms set out in the Labour Party’s manifesto and Plan to Make Work Pay.
New rights and duties under Bill
The Employment Rights Bill proposes significant reform to workers’ rights and industrial relations, including those set out below.
Changes to statutory sick pay
Under the Bill, statutory sick pay would be paid from the first day of sickness (currently it is only paid from day four of sickness). The lower earnings limit would also be removed.
Further ‘day one’ rights
The Bill proposes further rights from day one of employment, including:
- protection from unfair dismissal (currently available only after two years of service);
- entitlement to paternity leave (currently available only to those who have been employed by their employer for 26 continuous weeks); and
- entitlement to parental leave (currently available only after one year of service).
The Bill includes an extension to bereavement leave entitlement beyond bereaved parents to include anyone who has been bereaved. What relationship with the deceased is required in order to qualify for the leave is not yet clear.
Ending fire and rehire
Dismissing employees for refusing to agree to a variation to their contract would be considered unfair dismissal if the Bill becomes law.
Prohibition of ‘exploitative’ zero-hours contracts
Under the Employment Rights Bill, workers on low and zero-hours contracts would have the right to a guaranteed hours contract if they work regular hours over a defined period. Eligible workers would also have the right to reasonable notice of shifts as well as a right to payment for any qualifying shift that is cancelled, moved or shortened.
Anti-harassment measures
Under the Bill, employers must not permit harassment of their employees by third parties. Further, the Bill strengthens the new duty to prevent workplace sexual harassment (see our blog post on the new duty here) by requiring employers to take all reasonable steps to prevent sexual harassment.
Bolstered flexible working rights
Employers would only be permitted to refuse a request for flexible working if they consider that the application should be refused on a ground or grounds listed in the Employment Rights Bill (such as detrimental impact on performance) and if it is reasonable to do so.
Collective redundancy consultation
The Employment Rights Bill imposes an obligation to consult with staff when 20 or more redundancies are being considered within a 90-day period across the entire business (not just 20 in each establishment or store).
Timeline for implementation
The government announced that it expects to begin consulting on the reforms in 2025 and anticipates that most of the reforms will not take effect before 2026. The unfair dismissal reforms will not take effect before autumn 2026.
Further reforms to come
In addition to introducing the Employment Rights Bill to parliament, the government also published Policy paper: Next Steps to Make Work Pay. The paper details the government’s further plans to overhaul employment rights, via both legislative and non-legislative routes, including introducing the ‘right to switch off’ through a statutory Code of Practice and consulting on moving towards a single status of worker.
For more information on changes to employment law, see:
- Labour victory: What this means for employment laws (5 July 2024);
- The King’s Speech: key points and how it might impact you (25 July 2024);
- Government reforms remit of the Low Pay Commission (11 August 2024);
- Preventing sexual harassment at work: a new duty on employers (12 July 2024); and
- Duty to prevent sexual harassment: new EHRC guidance (3 October 2024).
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Becca joined Sparqa Legal as a Legal Editor in 2024 after transferring from FromCounsel. She previously worked as a caseworker at Advocate, the bar’s pro bono charity. Becca regularly writes for Sparqa’s blog, covering topics including staff contracts, discrimination, and health and safety.