Major Reforms to the UK Employment Rights Act
On October 10th 2024, the British government announced the Employment Rights Bill 2024. This is ?largest overhaul of employment law in decades, which includes 28 new changes aimed at creating a fairer and more efficient workplace. The bill introduces significant changes to the UK employment law and is designed to help businesses, workers and communities achieve economic security and growth.
Key Highlights of UK Employment Law 2024
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1.Day-One Rights
The bill removes the two-year eligibility period from unfair dismissal, ensuring workers are protected from day one. This includes entitlements to paternity leave, unpaid paternity leave and bereavement leave.
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2. Probation Period
A statutory probation period of up to nine months will be introduced to give employers more time to assess new employees.
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3. Zero-Hours Contracts
The bill targets exploitative zero-hours contracts, which provide for guaranteed working hours after a set of period.
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4. Sick Pay
Statutory sick pay will be paid from the first day of illness. It eliminates the previous 3-day waiting period and lower income limit.
5. Flexible Working
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If an employer cannot demonstrate that flexible working is impractical, flexible working will become the default practice.
6. Gender Pay Gap
Large employers will be asked to develop action plans to tackle the gender pay gap and support employees during the menopause.
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7. Fire-and-Rehire Practices
The bill aims to end the controversial practice of firing and reemployment and provide more employment security.
Conclusion
The Employment Rights Bill 2024 represents the most significant shift in employment for UK employers in more than 20 years. However, whether they will deliver the expected economic growth remains to be seen. Employers must stay informed and proactively adapt to these changes to ensure compliance and effectively support their workforce.
The government has also published a “Next Steps” document outlining future reforms it will consider. It includes closing workers’ rights, making it mandatory for large employers to report their race and disability pay gaps, expanding equal pay cases to cover race and disability, and reviewing the parental and carers leave systems, etc.
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