March 2025 Update: Key Amendments to the Employment Rights Bill & Exciting New Services from KLG.

Dear Subscriber,

We hope you're having a great start to March. This month, we're highlighting key employment law updates and introducing new services to support your business.

Employment Rights Bill – Key Amendments & Implications

The UK government has introduced significant amendments to the Employment Rights Bill.

Key proposed changes include:

1. Unfair Dismissal Protections:

The Bill proposes a “day one” right for employees to claim unfair dismissal, replacing the existing two-year qualifying period. This right will be subject to an initial period of employment, during which simplified dismissal procedures can be applied. While the Government has indicated a preference for setting this initial period at nine months, this duration has not been finalised and will be subject to further consultation.

2. Guaranteed Hours & Shift ? Notice for Agency Workers:

The amendments extend the right to guaranteed hours to agency workers on zero-hours or low-hours contracts, with the end hirer responsible for offering these hours. This proposed change aims to prevent exploitative zero-hour contracts and provide greater job security and predictability. Both employment agencies and end hirers will be required to provide reasonable notice of shifts, and compensation will be mandatory for shifts cancelled or changed at short notice.

3. Statutory Sick Pay (SSP) Reforms:

The Bill proposes to abolish the four-day waiting period for SSP, making it payable from day one of sickness. Additionally, employees earning below the lower earnings limit would receive 80% of their average weekly earnings as sick pay. This change will ensure financial protection from day one of illness, rather than after four days, helping more workers access essential support when unable to work.

4. Fire and Rehire Penalties:

The Bill prohibits the practice of dismissing employees only to rehire them under less favourable terms. Failure to properly consult workers before making such changes will now incur penalties of up to 180 day’s pay, doubled from the current 90-day penalty under the new amendments.

5. Bereavement Leave for Miscarriage:

The amendments suggest that a new provision relating to bereavement leave is likely to be introduced in the Bill. This will give mothers and their partners the right to two-weeks of bereavement leave if they have suffered a miscarriage before 24 weeks.

These amendments are subject to Parliamentary approval and could undergo further changes. Employers are advised to monitor the Bill’s progress and prepare to adjust employment contracts, shift policies, and dismissal procedures accordingly.

New Services at KLG:

1. Sexual Harassment Prevention Training – Now Available at KLG

We are pleased to announce that Kalra Legal Group now provides training on preventing sexual harassment in the workplace. Our training sessions are designed to help businesses foster a safer, more inclusive work environment while ensuring compliance with legal obligations. Investing in employee education can also reduce the risk of legal claims and strengthen company culture.

To book a session or learn more, contact us today.

2. B2B Terms & Commercial Contract Services – Now Available at KLG

We are pleased to expand our legal services to include drafting Business-to-Business (B2B) terms and commercial contracts. Whether you need assistance with supplier agreements, service contracts, or other commercial arrangements, our team can provide tailored legal support.

For more details, visit: Commercial Contracts Lawyers – KLG Law.

Key reminders:

National Minimum Wage Increase – April 2025 Reminder

From 1st April 2025, the National Minimum Wage will increase:

· Ages 21 and over: ￡12.21 per hour

· Ages 18-20: ￡10.00 per hour

· Ages 16-17 & apprentices: ￡7.55 per hour

Businesses should ensure payroll adjustments are made in advance to remain compliant.

Summary of Key Employment Law Updates:

Recent proposed amendments to the Employment Rights Bill include:

• Unfair Dismissal Protections – Employees may gain a “day one” right to claim unfair dismissal, with a proposed nine-month initial period.
• Guaranteed Hours for Agency Workers – Employers may soon be required to offer guaranteed hours contracts to agency workers. Additionally, workers would be entitled to reasonable shift notice, and compensation would be required for short-notice cancellations.
• ?Statutory Sick Pay (SSP) – The Bill proposes abolishing the four-day waiting period, making SSP payable from day one.
• ?Fire and Rehire Penalties – Banning dismissals used to rehire employees on less favourable terms, with penalties increased to 180 day’s pay for non-compliance of correct procedures.
• Bereavement Leave for Miscarriage – Parents who experience a miscarriage could gain a new right to bereavement leave.

These updates reflect the Government’s push for fairer workplace practices. Businesses should stay informed and prepare for possible adjustments to their employment policies.

If you need guidance on these developments, we're here to help. Feel free to get in touch for tailored advice.

Best regards,

Kalra Legal Group