The Employment Rights Bill is a significant milestone in employment law change, the largest for 20 years. The Bill was unveiled in October 2024 with most changes expected in 2026. Several components of law are affected, one of which – the duty on employers to take “reasonable steps” to prevent sexual harassment at work – came into force on 26 October 2024 (please see our previous blog for more information on this new law).
There is a lot of information and proposed changes coming down the pipeline so we’ve broken down the various affected laws with a brief summary for each:
Zero Hours Contracts
Current: Pays for hours worked only.
Change: To include the right to guarantee hours, reflect hours regularly worked over a 12 week period, and reasonable notice of shifts and compensation if shift is cancelled with reasonable notice not given.
Fire and Rehire
Current: Occasionally used when there is a failure to agree to a contract.
Change: Only possible if business is in severe financial crisis and has no alternative.
Unfair Dismissal
Current: Allows for employees to claim unfair dismissal after two years of service.
Change: The new law will allow for this from day one of employment, with a new statutory probation period. This is expected to be between 6 to 12 months however early signs indicate that it may be for 9 months.
Flexible Working
Current: There is a list of specified grounds for refusing a flexible working request which will not change.
Change: If refusing, employers will have to explain the grounds for refusal and why it is reasonable. Flexible working will be the default from day one, where practical, with employers expected to accommodate “as far as is reasonable”.
Statutory Sick Pay (SSP)
Current: SSP kicks in on the fourth day of sickness absence and the employee needs to have a lower earnings limit of £123 per week to qualify for this.
Change: Under the new law, SSP will be paid from day one of absence and a percentage will be paid for those under the current weekly rate of SSP (£116.75).
National Living Wage
Current: £11.44 per hour (age 21 and over).
Change: £12.21 per hour (Real Living Wage).
Tipping Law (came into effect 1 October 2024)
Change: Employers have to pass on 100% of all tips, gratuities and service charges to employees.
Maternity, Paternity and Family Leave Protection
Current: Additional rights if made redundant. Currently 26 and 52 weeks for employees to be eligible to take paternity and parental leave respectively.
Change: Give protection from dismissal to pregnant women and those on maternity leave for 6 months. Day one right for parental and paternity leave along with paternity leave and pay to be taken after shared parental leave and pay, subject to notice requirements.
Bereavement Leave
Current: Employers offer “reasonable” unpaid time off.
Change: Two weeks for parental bereavement leave and one week for other family members.
Redundancy
Current: Collective consultations apply if a minimum of 20 redundancies are proposed at one location over a 90-day period. Protective award is set at 90 – 180 days’ pay.
Change: Strengthen collective consultation to be triggered if redundancies reach a specific number across the business as a whole, not individual locations. Protective award cap to be either be increased or removed.
Trade Union Recognition Changes
Current: Can be a lengthy process, and minimum 40% of eligible employees must vote, minimum 50% likely to support recognition.
Change: Process to be simplified. Eligibility to vote requirements not required and duty on employers to inform workers of their right to join a union. Right to be given for trade union officials to request access to workplace to carry out discussions with employees.
In addition, a Fair Work Agency is to be established to enforce the following prime objectives:
- • The National Minimum Wage
- • Statutory Sick Pay
- • Employment agency and gangmaster regulations
- • Employment Tribunal award penalty scheme
If you would like to have a discussion on how we can assist you with preparing for these changes, please get in touch.