New Employment Rights Bill

UK Government Unveils New Employment Rights Bill

The new government’s Employment Rights Bill was submitted to parliament on the 10th of October 2024. The bill includes 28 measures that will be subject to consultation (and a further 30 other pledges that have no timeline for implementation).

When Will It Come Into Effect?

Due to the consultation process, it is likely that the proposed measures will only come into force in the autumn of 2026.

Labour announced that the new Employment Rights Bill is aimed at easing worker’s woes and stimulating business growth amidst a pandemic stricken economy.

This move is in light of data indicating that one in five UK businesses with a headcount of more than 10 are currently battling staff shortages.

What Are The Changes?

The new Bill and measures promise to:

Give protection against unfair dismissal from day one, while allowing employers to operate probation periods

Establish parental and bereavement leave from day one

End exploitative zero-hour contracts

End unscrupulous practices of fire and rehire and fire and replace

Make flexible working the norm where practical

Deliver stronger dismissal protections for pregnant women and new mothers

Establish a new Fair Work Agency with new powers to enforce holiday pay

Strengthen statutory sick pay

In a major relief to the workforce, the bill has omitted the two-year requisite period for protections against unfair dismissal. The legislation has introduced 28 individual employment reforms including the cessation of zero-hours contracts and ‘fire and rehire’ practices. It also establishes the ‘day one rights’ for paternity, parental, and bereavement leaves.

Furthermore, the lower limit for earnings and the waiting tenure for statutory sick pay will no longer exist.

Zero Hour Contracts

Regarding zero-hours contracts, the bill states that workers will now be entitled to a guaranteed-hours contract if they work regular hours over a defined period. However, people can stay on zero-hours contracts if they choose to.

In conclusion, the Employment Rights Bill, while promising significant reforms, has sparked intense debates among unions and businesses alike. As it goes through parliament, only time will tell how far this legislation can go in harmonising workers’ rights and businesses’ needs while ensuring growth and economic security.

Need Help?

We understand the difficulty businesses face in staying up-to-date with current legislation and ensuring streamlined payroll administration.

That’s why we provide a comprehensive range of payroll services to make sure you’re compliant with all HMRC requirements. With our help, you can rest assured that your business is meeting all the necessary compliance obligations.