The Employment Rights Bill 2024: What It Means for UK Workplaces
On October 10, 2024, the Labour Government introduced the Employment Rights Bill, fulfilling its promise to make sweeping reforms to UK employment laws within its first 100 days. This substantial legislation spans over 150 pages, containing 28 distinct reforms that aim to reshape workplace rights nationwide. The Bill is set to redefine the relationship between employers and employees by expanding protections, enhancing flexibility, and addressing exploitative practices. Here’s what you need to know about its most significant provisions, what’s still in the pipeline, and how businesses can prepare.
What’s Missing?
While the Bill is extensive, some highly anticipated measures have been left out:
- The Right to Disconnect: Originally intended to protect employees from being contacted outside of work hours, this proposal will now be handled via a statutory Code of Practice rather than being included directly in the legislation.
- Expanded Equal Pay Reporting: Although Labour had promised to broaden pay gap reporting to include race and disability, this initiative is expected to be part of the forthcoming Equality (Race and Disability) Bill.
- Simplification of Employment Status: Labour proposed consolidating employment categories into two classifications: “worker” and “self-employed.” However, this major reform has been deferred and will require further consultation before revisiting.
Five Key Provisions to Watch
1. Day-One Right to Unfair Dismissal Protection
Perhaps the most groundbreaking aspect of the Bill is the removal of the two-year qualifying period for unfair dismissal claims. Employees will now have the right to bring a claim from their very first day on the job. A "light touch" dismissal procedure will be in place during the new statutory probationary period, which will likely last nine months. Employers must refine their probation practices, focusing on clear performance metrics and comprehensive documentation to ensure compliance with this new standard.
2. Moving Away from Zero-Hours Contracts
The Bill tackles the long-standing issue of zero-hours contracts by granting workers the right to request guaranteed hours if they have worked regularly over a defined 12-week period. This aims to deliver Labour’s pledge to end “one-sided flexibility” in favour of workers, offering them greater predictability while discouraging employers from issuing contracts with artificially low guaranteed hours. Employers must also give reasonable notice for shifts and compensate employees for last-minute cancellations.
3. Tightening Fire and Rehire Practices
The Bill imposes significant restrictions on “fire and rehire” practices, making dismissing an employee for refusing a contract change automatically unfair. This tactic will only be permitted when necessary to prevent severe financial difficulties threatening the business. While employee advocates will likely support this change, business leaders who rely on flexibility to implement organisational changes may not.
4. Enhanced Trade Union Rights
In alignment with Labour’s commitment to strengthening trade unions, the Bill provides union representatives with a new “right of access” to workplaces, and employers will be required to inform employees of their union rights at the start of employment. Furthermore, protections are extended to ensure employees do not suffer any negative consequences for participating in industrial action. The Bill also aims to bolster union influence and streamline industrial action processes by repealing the Minimum Service Levels requirement for public services.
5. Making Flexible Working the Default
Building on recent legislative changes, the Bill now makes flexible working the standard expectation from day one. Employers can still refuse requests, but they must now provide a reasonable explanation in writing. This change signals a shift towards prioritising work-life balance as a cornerstone of workplace culture. While the penalty for non-compliance remains capped at eight weeks’ pay, this reform reflects the importance of adapting to employees’ needs in an evolving work environment.
Other Key Provisions
- Day-One Family Leave and Sick Pay: Parental leave, paternity leave, and statutory sick pay are now accessible from day one of employment. Sick pay will begin from the first day of absence, with the lower earnings threshold removed to widen eligibility.
- Broadened Bereavement Leave: The Bill introduces a statutory right to bereavement leave for all employees, a significant expansion beyond current limits that apply mainly to parents who have lost a child.
- Strengthened Harassment and Whistleblowing Protections: Employers must take “all reasonable steps” to prevent workplace harassment, including third-party harassment. Sexual harassment will also now be considered a protected disclosure under whistleblowing legislation, allowing employees to report misconduct without fear of retaliation.
- Expanded Maternity Protections and Gender Equality Action Plans: Pregnant employees and new mothers will benefit from enhanced protections, including day-one maternity pay eligibility and a six-month dismissal prohibition following their return. Large employers may also need to develop action plans to address gender pay gaps and support employees through menopause.
- The Fair Work Agency: The Bill establishes a new enforcement body called the Fair Work Agency, which consolidates the roles of existing bodies to oversee employment rights enforcement. This agency will help employers navigate the evolving regulatory environment and ensure compliance with new standards.
What’s Next?
The Employment Rights Bill is now on its way through Parliament, with its second reading scheduled for October 21, 2024. Some provisions may be amended, postponed, or even removed as it undergoes scrutiny. The government has committed to a series of public consultations on various issues, with some set to begin soon and others extending into 2025.
Immediate consultations will cover zero-hours contracts, sick pay, fair pay agreements, and trade union rights. Discussions on fire and rehire practices, as well as day-one unfair dismissal rights, are expected to occur in 2025. Most of the Bill’s provisions are not anticipated to come into force until 2026, providing employers with a window of time to adjust.
How Employers Can Prepare
Although implementation will likely be phased in over the next two years, taking proactive steps now will help businesses stay ahead of the curve. Here are some steps to consider:
- Audit Contracts and Policies: Review your employment contracts and policies to ensure they align with the upcoming changes, paying close attention to probation and dismissal procedures, flexible working policies, and zero-hours contracts.
- Focus on Transparent Communication: Clear and consistent communication with employees will be essential to maintaining trust and easing transitions. Inform your team about the anticipated changes and demonstrate your commitment to a fair and supportive workplace.
- Seek Expert Guidance: Navigating these changes will require thoroughly understanding the new regulations. Consulting with HR professionals or legal advisors can provide valuable insights and ensure your business is well-positioned for compliance.
Conclusion: Navigating the Road Ahead
The Employment Rights Bill represents a significant shift towards a more employee-centric workplace in the UK. While many of the details are still being worked out, the Bill presents both business challenges and opportunities. By preparing now, employers can comply with the new regulations and position themselves as leaders in fostering a fairer, more flexible work environment.
This is a moment to reevaluate how we build workplace cultures that support all employees. With thoughtful planning and a commitment to adapting, businesses can leverage these changes to improve employee satisfaction, strengthen workplace culture, and ultimately drive long-term success. The Employment Rights Bill is more than just a set of rules—it’s a call to action to create workplaces that meet the needs of today’s workforce.
About the Author
I’m Karl Wood, founder of WINC HR Strategy and Solutions. With over 25 years of experience helping organisations around the world transform their HR practices, I’ve worked across the US, UK, Europe, and Asia Pacific, partnering with industry leaders to create inclusive, resilient, and high-performing workplace cultures. I’m passionate about finding innovative ways to tackle complex workforce challenges and implement strategies that foster growth, flexibility, and employee engagement.
If you’re ready to rethink your approach to leadership or explore the latest in HR strategy, I invite you to connect with me on Medium for more insights on the evolving world of work. Let’s continue the conversation — reach out anytime for advice, discussions, and collaboration!
