How will the new Employment Rights Bill impact UK workers? Here's what we know so far
The UK government's Plan to Make Work Pay is officially under way. The first phase of the plan – the Employment Rights Bill – was introduced to Parliament in October 2024.
The Bill proposes several changes to the rights of workers in England, Scotland and Wales. The government calls it "the biggest upgrade to rights at work for a generation".
The new rights are due to start in 2026, although the details aren't yet set in stone. They'll be reviewed in a series of government consultations over the next two years.
Here are some of the changes that are currently being proposed in the Employment Rights Bill.
The right to claim unfair dismissal from day one
One of the biggest changes the Bill proposes is to the right to claim unfair dismissal. Currently, workers can usually only do this if they are fired or made redundant unfairly after two years of employment.
Under the Employment Rights Bill, workers will have the right to claim unfair dismissal from their very first day of employment.
However, a “lighter-touch dismissal process” will apply during a new statutory probation period. The government has said it will consult on how long this period should be but its “preference” is nine months.
An end to "firing and rehiring" tactics
The Bill intends to limit employers' use of "firing and rehiring" tactics to force employees into accepting unfavourable contract changes.
At the moment, when an employee refuses to accept a contract change, the employer can fire them and then rehire them under the terms of the new contract.
That's all set to change under the Employment Rights Bill. Firing an employee who refuses a contract change will be treated as automatic unfair dismissal. There will be a limited exception for employers who need to do this due to financial difficulties.
No more “exploitative” zero-hour contracts
The Employment Rights Bill intends to ban “exploitative” zero-hours contracts. A range of measures will be introduced to strengthen protections for zero-hours employees, including banning clauses preventing employees working elsewhere, and introducing rights to guaranteed hours and to compensation if shifts are cancelled at short notice. Employers must also provide reasonable notice of shifts which they require employees to work.
Some of these changes will also apply to employees with a low number of guaranteed hours and those without a set working pattern - not just zero hours employees.
Greater protection from workplace harassment
Today, employers are not responsible for protecting employees from harassment by third parties. Under the Employment Rights Bill, that is set to change. Employers will have to put measures in place to take “all reasonable steps” to protect employees from any kind of harassment from a client, customer or other third party. This would strengthen the protections against sexual harassment which were recently implemented in the Worker Protection (Amendment of Equality Act 2010) Act 2023.
More support for flexible working requests
As part of its plan to “support family-friendly rights”, the Bill also addresses flexible working. Employees will continue to have the right to make a flexible working request from day one of employment. However, if their request is unsuccessful, their employer will have to "explain the grounds on which they've denied a request" - essentially they will have to explain why they think it is reasonable to refuse the request based on those grounds.
Enhanced parental, paternity and bereavement leave
The Employment Rights Bill includes plans to make parental and paternity leave available from day one of employment.
The Bill also sets out to expand bereavement leave for employees. Under the proposed new rules, workers who lose a close family member will be entitled to one week's bereavement leave.
Stronger protections for pregnant workers and new mothers
The Employment Rights Bill will "introduce new protections from dismissal" for pregnant employees. These new protections will also apply during maternity leave and the first six months of a mother's return to work following maternity leave.
Improved access to statutory sick pay
Statutory sick pay (SSP) is currently only payable after an employee has been off sick for more than three days in a row. To qualify for SSP, employees must earn an average of £123 per week or more.
Under the Employment Rights Bill, both these rules are set to change. Statutory sick pay will be payable from the first day of absence and there will be no lower earnings threshold for eligibility.
More comprehensive collective redundancy consultations
The Employment Rights Bill also proposes stronger collective redundancy consultation rules for employers.
Currently, if 20 or more redundancies are proposed at a single location, employees at that location must be consulted.
If the Bill goes ahead in its current form, employers will have to consult their entire workforce if 20 or more redundancies are proposed.
Stronger gender pay gap reporting and plans for menopause support
The Bill seeks to "prioritise fairness, equality and wellbeing of workers". As part of this commitment, it plans to include outsourced workers in gender pay gap reporting.
It will also require employers with 250+ employees to publish action plans for addressing gender pay gap issues and supporting employees going through menopause.
What's next for the Employment Rights Bill?
As consultations take place over the next two years, we'll be watching the progress of the Employment Rights Bill closely.
The current plans could mean more rights for workers in England, Scotland and Wales from 2026 onwards.
Keep an eye on our blog for further updates – or sign up to our newsletter to get the news straight to your inbox.
