The Employment Rights Bill 2024: Your Guide to the Biggest Shake-Up in UK Employment Law

On October 10, 2024, the Labour Government introduced the Employment Rights Bill to Parliament, making good on its pledge to overhaul employment law within its first 100 days. With over 150 pages and 28 distinct reforms, this far-reaching Bill seeks to modernise UK workplaces by expanding job protections, promoting flexibility, and curtailing exploitative practices. From granting day-one rights to ending zero-hours contracts and restricting "fire and rehire" practices, the Bill will fundamentally reshape the employer-employee relationship. Here’s what you need to know about what’s included, what’s postponed, and what’s coming next.

What’s Missing?

While the Bill is extensive, a few anticipated measures did not make the cut:

• The Right to Disconnect: Initially promised as a measure to ensure employees aren't contacted outside of working hours, this proposal will instead be addressed through a statutory Code of Practice rather than direct legislation.
• Equal Pay Reporting for Race and Disability: Although Labour plans to expand pay reporting to cover race and disability, this initiative is expected to be part of the forthcoming Equality (Race and Disability) Bill, which may also mandate pay disparity reporting.
• Employment Status Overhaul: The simplification of employment status categories—consolidating current classifications into “worker” or “self-employed”—will require further consultation and has been deferred. Labour will revisit this substantial reform in future legislative updates.

Five Key Provisions to Watch

1. Day-One Right to Unfair Dismissal Protection

The Bill removes the two-year qualifying period for unfair dismissal claims in a landmark change. Employees now have the right to bring a claim from their first day. Alongside this change, a statutory probation period—likely set at nine months—will introduce a “light touch” dismissal process during this time. Employers must adapt by refining probation procedures, setting clear performance expectations, and ensuring comprehensive documentation of employee progress and any issues. This change underscores the importance of fair treatment from day one and is a significant step towards enhancing job security.

2. Zero-Hours Contracts: From Uncertainty to Guaranteed Hours

The Bill addresses the longstanding issue of zero-hours contracts by giving workers the right to request guaranteed hours if they have worked regularly over a defined 12-week period. Employers must also provide reasonable notice for shifts and compensate employees for last-minute cancellations. This provision aims to deliver on Labour’s pledge to end “one-sided flexibility,” offering stability to workers while deterring employers from issuing contracts with artificially low hours. This will bring greater predictability for employees who often face fluctuating work hours and incomes.

3. Tightening Restrictions on Fire and Rehire Practices

The Bill severely limits the ability to use "fire and rehire" tactics, making dismissing employees for refusing contract changes automatically unfair. Dismissal and re-engagement on new terms will only be allowed if necessary to avoid severe financial difficulties threatening the business’s viability. This measure is expected to spark debate among business leaders, as it restricts their ability to make swift changes unrelated to financial survival. It also reflects a shift towards greater employee protection when facing contractual changes.

4. Enhanced Trade Union Rights and Access

The Bill aligns with Labour’s commitment to strengthening trade union rights. Trade union representatives will have a newly established “right of access” to workplaces, and employers must now inform employees of their union rights in their initial employment documentation. Additionally, employees will be protected from any negative consequences for participating in industrial action, addressing a legal loophole highlighted by the UK Supreme Court. By repealing the Minimum Service Levels for public services, the Bill will likely facilitate greater union participation in strikes, which could have widespread implications for industrial relations.

5. Flexible Working as the Default Option

While flexible working became a day-one entitlement earlier in 2024, this Bill further cements it as the default from the outset of employment. Although employers can still refuse requests, they must now provide a reasonable justification in writing. This change reflects a broader shift towards integrating work-life balance into workplace practices and reinforces the importance of flexibility as a standard expectation. As businesses adjust to this norm, they will have to weigh business needs against employee well-being, with the potential for increased employee satisfaction and productivity.

Other Key Provisions

• Day-One Rights for Family Leave and Sick Pay: The Bill makes unpaid parental leave, paternity leave, and statutory sick pay available from day one of employment. Sick pay will begin from the first day of absence, with the lower earnings threshold removed to cover a broader range of workers, including part-timers and low earners.
• Expanded Bereavement Leave: The Bill establishes a statutory right to bereavement leave for all employees, broadening eligibility beyond the current limits that apply primarily to parents who have lost a child.
• Anti-Harassment and Whistleblowing Protections: The Bill strengthens workplace harassment protections, requiring employers to take “all reasonable steps” to prevent harassment, including third-party harassment. Sexual harassment will also be classified as a protected disclosure under whistleblowing laws, reinforcing employee rights to report misconduct without fear of reprisal.
• Enhanced Maternity Protections and Gender Equality Action Plans: New provisions extend protections for pregnant workers and new mothers, including day-one maternity pay and a six-month prohibition on dismissal following their return. Employers with over 250 employees may also be required to develop action plans to address gender pay gaps and support employees through menopause, demonstrating a commitment to gender equity in the workplace.
• The Fair Work Agency: The Bill establishes a Fair Work Agency, consolidating the roles of existing bodies to enforce statutory employment rights such as minimum wage, holiday pay, and protections against labour exploitation. This new agency is designed to streamline compliance and guide employers on navigating regulatory requirements.

What’s Next?

The Employment Rights Bill will now proceed through Parliament, with the second reading scheduled for October 21, 2024. During this stage, the Bill will be subject to debate, and some provisions may be amended, postponed, or removed. The government has committed to multiple rounds of public consultation, expected to occur throughout 2025 and into 2026.

Immediate consultations will focus on issues like zero-hours contracts, sick pay, fair pay agreements, and trade union rights, while discussions on fire and rehire and day-one unfair dismissal rights will likely follow in 2025. Most of the Bill’s provisions are not expected to come into effect until 2026, giving employers time to prepare for these comprehensive changes.

Preparing for Change: Steps Employers Can Take Now

While implementation will be phased in over the next two years, proactive preparation will help employers stay ahead of the curve. Here’s how to get started:

1. Audit Employment Contracts and Policies: Review existing documentation to ensure compliance with the anticipated changes. Pay particular attention to probationary and dismissal procedures, flexible working arrangements, and zero-hours contracts.
2. Promote Transparent Communication: Keeping employees informed and engaged throughout this period of change will be crucial for maintaining trust. Clear communication will ease transitions and show commitment to a fair and supportive workplace.
3. Seek Expert Guidance: Given the complexity of the new regulations, consulting with HR professionals or legal advisors can help ensure compliance and provide insights into how these changes may impact your specific business operations. Staying informed and adaptable will be key to navigating this evolving landscape.

Conclusion: Navigating the Road Ahead

The Employment Rights Bill 2024 marks a significant shift in the UK’s approach to workplace rights, setting a new standard for fairness, flexibility, and employee protection. While the details are still unfolding, the Bill’s comprehensive scope offers both challenges and opportunities for employers. For many businesses, these changes will require a recalibration of policies and practices to align with a more employee-centric framework.

By proactively embracing this transformation, employers can ensure compliance and position their organisations as leaders in creating supportive, modern workplaces. Now is the time to review your current practices, communicate with your team, and seek expert advice. This preparation will help you adapt to the evolving regulatory landscape and build a foundation for a resilient, inclusive, and productive workforce.

The road ahead may be complex, but with thoughtful planning and a commitment to fairness, businesses can leverage these reforms to enhance workplace culture, improve employee satisfaction, and ultimately drive long-term success. The Employment Rights Bill isn’t just about new rules—it’s a call to action to create workplaces that truly reflect the needs and values 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 had the privilege of working 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.

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