UK Employment Rights Bill – a summary

 UK Employment Rights Bill (introduced 10 October 2024) 


✅ Key aims

  • Modernise and upgrade employment rights — the biggest reform package in decades.

  • Improve job security, fairness and living standards for workers.

  • Help employers and employees adapt to modern working patterns.


🔍 Main proposed reforms

1. Unfair dismissal

  • Removes the current two-year qualifying period, unfair dismissal claims can be made from day one of employment.

  • Employers may still use a probationary period (expected to be around nine months) where dismissals are easier to justify.

2. Zero-hours and agency workers

  • Workers on zero-hours or very low-hours contracts will gain the right to request a contract reflecting their regular hours, based on a 12-week reference period.

  • Applies to agency workers too, closing a previous loophole.

3. Shift and notice rights

  • Workers will have a right to reasonable notice of shifts.

  • They will also have a right to compensation if a shift is cancelled or changed at short notice.

4. Family-friendly rights

  • Removes qualifying service periods for parental and paternity leave, making them available from day one.

  • Expands bereavement leave rights to cover more types of loss.

5. Statutory Sick Pay (SSP)

  • Abolishes the waiting period, meaning SSP is payable from the first day of sickness.

  • Removes the lower earnings limit, extending eligibility to more workers.

6. Collective redundancies

  • The current rule applies when 20 or more redundancies occur at one establishment.

  • Under the Bill, this threshold will apply across the whole business, regardless of establishment.

7. “Fire and rehire”

  • Strengthens protections against dismissing and re-engaging employees on worse terms.

  • May classify certain “fire and rehire” practices as automatically unfair dismissals.

8. Enforcement and institutions

  • Introduces stronger enforcement of employment rights such as sick pay, holiday pay, and underpayment claims.

  • Establishes a clearer framework for compliance and penalties.


📅 Implementation

  • Introduced in October 2024.

  • Most provisions will require further consultation and secondary legislation before taking effect.

  • Expected implementation of major changes from 2026 onwards, with some measures possibly delayed until 2027.


⚠️ Implications

For employers

  • Significant need to review contracts, probation policies, sick pay and redundancy procedures.

  • Likely to increase HR administration and potential tribunal exposure.

For employees

  • Stronger rights and earlier access to protections.

  • Greater predictability for working hours and job security.


🧾 Summary table

 

Area Current law Proposed change under Bill
Unfair dismissal 2 yrs service required Day-one right
Zero-hours contracts No guaranteed hours Right to match regular working pattern
Shift notice rights Often unregulated Right to notice and compensation for cancellations
Statutory sick pay Waiting period + earnings limit Payable from day one, no earnings threshold
Parental/paternity leave Qualifying period required Day-one entitlement
Collective redundancies 20+ at one establishment 20+ across whole business
Fire & rehire Permitted in some cases Tighter restrictions, potential automatic unfair dismissal
Flexible working Request right with qualifying period Default expectation of flexibility

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