Employment Rights Bill – what does this mean for employers?

Blogs | Webinars | Guides | Testimonials | Get a quote

Back in June this year, Labour pledged that if they won the General Election they would introduce new legislation that would “make work pay” within the first 100 days of being elected.

On 10th October 2024, 98 days after coming into power, they introduced the Employment Rights Bill in parliament which is the first step in implementing such changes.

Deputy prime minister Angela Rayner said:

"This government is delivering the biggest upgrade to rights at work for a generation, boosting pay and productivity with employment laws fit for a modern economy. We’re turning the page on an economy riven with insecurity, ravaged by dire productivity, and blighted by low pay."

Billed as the biggest overhaul to employment law in a generation, we look at what this will mean for employers.

What will change?

Flexible working to become the default rather than the exception

With the aim to create a more adaptable and supportive work environment, benefiting both employees and employers, the Bill aims to make flexible working the default rather than the exception. The plan includes the right to apply from day one of employment, a simple request process, and a greater obligation on employers to consider all working requests reasonably and only refuse them on specific, justifiable grounds.

Longer disciplinary process for employees with short service 

Currently, employees are required to have a minimum of 2 years’ service to be able to make an unfair dismissal claim. This often allows employers the opportunity to shorten the disciplinary procedure for those with short service. The Bill will put a stop to this by removing the qualifying period to allow employees the right to make a claim from their first day of employment. It is expected that employers will still be able to implement probationary periods of up to 9 months for any new employees.

Changes to family friendly legislation

The Bill sets out to implement the following changes to family friendly legislation.

• Removing the requirement for employees to have a years’ service before being eligible for Parental Leave. The new plan will make it available from their first day of employment.

• Making it unlawful to dismiss a woman who is pregnant for six months after her return, except in specific circumstances.

• A review of carers leave including examining if this leave should be paid. Currently, employers are not legally bound to pay anyone during their careers leave.

Introducing the right to take Bereavement Leave.

Whist the majority of employers will allow their employees time off following a bereavement of a close family member or friend they are not legally required to do so (with the exception of parental bereavement which allows parents time off after the death of their child under the age of 18). The Bill sets to introduce the right for all employees regardless of service to be able to take Bereavement Leave.

End exploitative zero hour contracts

Often employers place employees on zero-hours contracts that doesn't guarantee them a set amount of hours each week but they expect them to work regular hours. The Bill pledges to put a stop to this by ensuring that all employees have a contract that reflects the hours each regularly work.

End unscrupulous practices of fire and rehire and fire and replace

Employers have been known to change employees’ terms and conditions of employment by making their role redundant then offering them re-engagement on reduced terms. The Bill plans to put greater controls in place to stop this practice.

When will it come into effect?

The 100-day timeline led many to believe that the changes would be imminent, however changing legislation is never a quick process.

The Bill will now need to go through the following stages before becoming law:

1. Debated in Parliament

The Bill will be debated in both the House of Commons and the House of Lords.

2. Consultation

The government plans to consult the proposed changes with stakeholders, including businesses, workers, and unions before they refine the details of the reforms.

3. Phased implementation

The reforms will be implemented in phases. Some the changes to flexible working and the introduction on the right to Bereavement Leave will be introduced soon after the Bill’s passage. Other reforms, such as changes to unfair dismissal laws, are expected to take effect no sooner than Autumn 2026.

4. Guidance

Once all is agreed, the government will publish guidance to help employers and employees understand and prepare for the new regulations.

Who will enforce it?

A new enforcement body called the Fair Work Agency will be introduced to bring together existing enforcement bodies, which will also enforce rights such as holiday pay. The remit of the new body is not likely to be fully clear until all the measures in the Bill have been consulted on or enacted.

What is missing?

There are some notable omissions from the Bill such as the right to disconnect, mandatory reporting on ethnicity and disability, single worker status and carers leave.

These gaps highlight areas where further legislative action may be needed to fully address the concerns of workers and ensure comprehensive protections.

It is understood that legal complexities around this subject means that it will have to be revisited.

Further advice and support

If you have would like further assistance on the impact a change in government will have on legislation please call our Advice Line on 0345 073 0240 (selecting option 2) for more specific guidance, tailored to your individual company.

Our HR leadership quiz is now LIVE! Take the test to find out what kind of leader you are!