UK Government unveils its Employment Rights Bill
UK Government unveils its Employment Rights Bill

UK Government unveils its Employment Rights Bill
The government is set to announce its overhaul of workers’ rights today (Thursday) with the unveiling of its Employment Rights Bill. The bill will bring forward 28 individual employment reforms, with the government describing it as the “biggest upgrade to rights at work for a generation.”
The planned changes will not take effect for two years following a period of consultation.
The plans include:
- A removal of the two-year qualifying period for protections from unfair dismissal and a proposed nine-month probation period where people can be sacked without a full process. This aims to allow for a proportionate assessment of an employee’s suitability to a role as well as reassuring employees that they have rights from day one, enabling businesses to take chances on hires with a lighter touch process.
- Changes to statutory sick pay (SSP), where workers will now be entitled to SSP from the first day rather than the fourth day. The earnings threshold of £123 per week for claiming SSP will also be removed.
- The introduction of statutory bereavement leave.
- Paternity leave: To be available to fathers on their first day of employment rather than after 26 weeks.
- Unpaid parental leave: Parents to be eligible from day one of employment instead of after one year. An additional 1.5 million parents will gain this additional flexibility.
- Flexible working: Bosses will be expected to consider flexible working requests made from day one and must approve these unless they can prove the request is unreasonable.
- Zero hours staff will have the right to move to a guaranteed hours contract if they work regular hours.
- “Fire and rehire” dismissal will be banned except in extreme circumstances.
- Large employers will be required to create action plans on addressing gender pay gaps and supporting employees through the menopause.
- Protections against dismissal will be strengthened for pregnant women and those returning from maternity leave.
This overhaul comes against a backdrop of strikes with more than twice as many days lost to industrial action than France under Rishi Sunak’s premiership. With Labour saying new analysis showed that the Tories’ “scorched-earth” approach to strikes over the last two years cost the economy £3.3 billion in lost productivity, including £1.7 billion from NHS industrial action alone.
Angela Rayner MP, Deputy Prime Minister, said “This Labour Government’s plan to make work pay is central to achieving our growth mission, boosting productivity. After years of stagnation under the Tories, we’re replacing a race to the bottom with a race to the top, so employers compete on innovation and quality.
“It’s by making work more secure and modernising workplaces that we will drive up productivity, improve living standards, generate jobs and investment, and pave the way for sustained economic growth that benefits working people.
“We’re calling time on the Tories’ scorched earth approach to industrial relations. A new partnership of cooperation between trade unions, employers and government will put us in line with high-growth economies that benefit from more cooperation and less disruption.”
Jonathan Reynolds MP, Business Secretary, said “It is our mission to get the economy moving and create the long term, sustainable growth that people and businesses across the country need. Our plan will give the world of work a much-needed upgrade, boosting pay and productivity.
“The best employers know that employees are more productive when they are happy at work. That is why it’s vital to give employers the flexibility they need to grow whilst ending unscrupulous and unfair practices.
“This upgrade to our laws will ensure they are fit for modern life, raise living standards and provide opportunity and security for businesses, workers and communities across the country.”
The Recruitment and Employment Confederation has been broadly positive on the Bill, highlighting its importance to “secure economic growth by making work pay and making our economy more productive”.
Commenting today, Neil Carberry, REC Chief Executive, described the bill as “one of the most significant interventions in our labour market by any government for decades. But it is only a milestone – much of the detail of how things will actually change needs to be worked out in regulations.”
He added, “We remain concerned to ensure that firms are attracted to investing in Britain, and that businesses can grow successfully here. That means working with businesses to avoid changes that disincentivise hiring, and being clear about timetables, expectations and ensuring that rules will be enforced properly to ensure a level playing field.”
“Over the past few months, the government has engaged with businesses and unions on these plans.
“Clarity on timing today should help reassure businesses that changes will not be rushed. And the commitment to looking at the impact for agency workers specifically is good news - new laws must work for everyone. “
Neil Carberry added “Business is clear that the day one right to unfair dismissal must have a probation period. That is the only way to support firms taking a chance on people. Likewise, research shows getting rules on zero hours contracts wrong could damage worker interests - we look forward to working with government to get this right. Costs pressures are biting businesses of all sizes, and each of these changes from SSP to parental leave will need to be properly costed out, and the burden of cost shared across business and government.”
Despite a poll by Trades Union Congress (TUC) union indicating the Bill has received widespread support from business leaders, particularly among larger employers, small business owners have voiced concern about the additional burden and costs it will impose on them.
According to a survey from HR system provider, BrightHR of over 140,000 small business owners in the UK, 88% of small business owners have concerns about implementing the reforms in the Bill, with the top concerns being the amount of time it will take to implement the changes (42%), the associated costs (40%), and the monetary risk of implementing reforms incorrectly (24%).
The survey also found that nearly 8 in 10 (78%) small business owners believe it will be ‘difficult’ to implement new day-one rights, including protection from unfair dismissal, while only 1 in 5 (19%) say they have the in-house HR expertise and systems necessary to navigate the changes confidently and compliantly.
Alan Price, CEO at BrightHR, says: “Small business owners are understandably concerned about the many new HR requirements they will need to adhere to when the Employment Rights Bill comes into effect.”
Kate Palmer, Employment Services Director at HR Services company, Peninsula commented on the implications of the Bill for employers “Possibly the most significant inclusion is the planned introduction of a day one right to unfair dismissal protection. This proposal comes alongside the commitment to consult on a statutory probation period which is likely to be 9 months long. Early indications are that the full unfair dismissal protection will not apply during this period, though exact details are awaited.
“Once in force, it will redefine employers’ current ‘early exit’ procedures. In brief, employers will have a much shorter period to decide on the suitability of an employee before having to engage in what can be lengthy formal procedures to fairly dismiss an employee.”
Fiona Coombe, SIA’s Director of Legal and Regulatory Research commented that “the devil will be in the detail” of the legislation which may not be clear for another two years. “While large employers have dedicated in-house HR teams to implement these reforms and ensure that businesses comply, the burden will fall on small employers who often lack the resources to absorb additional cost or administration.”
Further proposed reforms regarding a single status for workers and employees will be introduced at a later date after consultation but “have the potential to significantly disrupt UK the staffing industry”.