Employment Rights Bill

Improving Workers Rights and Ensuring Fair Treatment

The Employment Rights Bill was introduced to Parliament on Thursday 10 October 2024. Some of the changes apply to employers with over 250 employees so I’ve glossed over those as all my clients are generally in the 1 – 100 employee bracket.

There are five sections to the Employment Rights Bill:

  1. Individual Employment Rights;
  2. Collective Employment Rights;
  3. Pay and Conditions for School Support Staff and Adult Social Care Sectors;
  4. Trade Unions and Strike Action; and
  5. Enforcement Action.
Updates

This page was first published on 23 July 2024, the latest update was on 29 January 2025.

Next Steps Document

At the same time that the Employment Rights Bill was announced, Labour published their Next Steps document which lists additional reforms from the pre-election manifesto and outline Labours longer term plans.

Documents and Information

Information about how the Bill is progressing through Parliament, with copies of the original Bill and all amendments and the Governments Explanatory Notes and Fact Sheets can be found on the Employment Rights Bill: Documents and Information page of this site.

Go To Documents and Information …

Employment Rights Bill: Part One Individual Employment Rights

Bereavement Leave
‘Parental’ will be removed from the Parental Bereavement Leave Act; making all employees entitled to paid bereavement leave.
There will be a qualifying relationship between the employee and the person who has died. This is likely to mirror the relationship requirements used in the Time of For Dependents and Carers Leave Acts. Where an employee is eligible to leave and experiences more than one death they will be entitled to leave in respect of each death.

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Flexible Working
There are no plans to change the process so it remains a ‘right to request’ rather than become a right to have flexible working. However, the Bill says refusal has to be reasonable, from a list of specified grounds for refusal (the eight grounds for refusal remain the same; but the reasonableness requirement is new) and the employer must to explain, in writing, why their refusal is reasonable.
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Guaranteed Hours and Notice of Shifts and Moved, Cancelled or Curtailed Shifts
Minimum Hours Contracts have been brought into the legislation to prevent employers from replacing Zero Hours Contracts with contracts that provide one hour of work to avoid compliance with zero hours legislation.

Under the new regime the duty will be on the employer to comply, rather than on the employee to request.

The duty will be to provide:

  • Guaranteed Hours the employer must make a guaranteed offer of regular hours, which reflects the hours worked in the previous defined period.
  • Reasonable Notice of Shifts the employer will be required to provide notice of required and requested hours of hours. 
  • Reasonable Notice of Cancellation or Change of Shifts where a shift is cancelled or the day of work or start or finish time is changing the employer will be required to provide reasonable notice to the employee.
  • Compensation will payable to the employee for previously agreed shifts that are cancelled, moved or curtailed at short notice.

A consultation was launched in late October and closed on 2 December 2024. The consultation sought views on the extension of the provisions to agency workers and specifically whether agency workers should be offered guaranteed hours by the employment agency, or by the end hirer and who should be reasonable for serving notice of shifts and cancellation or curtailment of shifts.

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Paternity Leave and Pay
The length of service requirement will be removed, making the entitlement to pay and leave a day one right.
The restriction that prevents paternity leave being taken after Shared Parental Leave will be removed.
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Probationary Periods
A statutory Initial Period of Employment will be introduced that will allow for assessment of an employee’s suitability. How long the period will be is not defined; six and nine months have been reported in the press.

There are a number of options on what a fair dismissal will look like:

  • Dismissal during, or at the end of, the statutory period may be added to the list of 5 fair reasons for dismissal;
  • A minimum statutory procedure may be introduced that must be followed to make the dismissal fair. (Remember those Statutory Dismissal and Disciplinary Procedures we all loved!!!).

So, careful monitoring of probationers is going to become really important. Extending probation should be rare and failing to make an assessment at the end so the employee continues in their employment by default should be avoided.

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Protection from Redundancy For Pregnant and New Mothers
Enhance maternity protection to prohibit dismissal for 6 months following a return to work from maternity leave; except in specific circumstances.
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Section One Statements
The list of essential content will be extended to include a statement that the employee has the right to join a trade union.
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Sexual Harassment
Employers will be required to take ALL reasonable steps to prevent sexual harassment. The addition of the word ‘ALL’ extends the duty from taking reasonable steps to taking all reasonable steps.
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Sick Pay
SSP will be payable from day 1 of an employees sickness, not day four. The Lower Earnings Limit will be removed, making SSP eligible to more employees.

Statutory Sick Pay is currently £116.75 per week. The rate of payment for those below the Lower Earnings Limit will become a percentage of regular pay.

A consultation was launched in late October and closed on 4 December 2024. The consultation sought views on what the percentage rate should be for those who earn less than the Lower Earnings Limit.

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Third Party Harassment
Employers will be required to take ALL reasonable steps to prevent harassment by third parties. This wasn’t in the pre-election manifesto. Third party harassment was originally in the Worker Protection (Amendment of Equality Act) Act 2023 that came into effect on 26 October 2024 but it was removed.
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Unfair Dismissal
The qualifying period of employment i.e. two years will be removed. Meaning employers will have to rely on one of the five fair reasons for dismissing an employee and follow a reasonable process when dismissing an employee on or after day one of employment.

Employees who feel they have been unfairly dismissed will be able to make a claim for unfair dismissal.

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Unpaid Parental Leave
The length of service requirement will be removed, making the entitlement a day one right.
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Written Statement of Reasons For Dismissal
Employees with two years of continuous service are entitled to receive a written statement outlining the reasons for their dismissal. The Bill changes the framework, so that employees who have completed their Initial Period of Employment before qualifying for the statutory right to receive written reasons.

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Employment Rights Bill: Part Two Collective Employment Rights

Collective Redundancy Consultation
Change the law on collective redundancy consultation so that the obligation to collectively consult is triggered by the number of people impacted across the business, rather than in one workplace.
It is not clear whether Labour also plan to change the number of redundancies that would trigger collective consultation requirements.
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Fire and Rehire Practices
The practice of fire and re-hire will only be acceptable when the company is on the verge of collapse. It will be necessary to go through an extensive consultation process before resorting to fire and re-hire.

A consultation was launched in late October and closed on 2 December 2024. The consultation sought views on the maximum protective award a tribunal can provide to an employee where an employer has failed to comply with the consultation obligations (currently 90 days). Views were sought on whether the employer should be instructed to re-employ the individual or pay normal wages and benefits until the date of full hearing or pay normal wages and benefits from the date of the claim to the date of the full hearing.

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Fair Work Agency
A new Fair Work Agency will be established that will bring together different enforcement bodies. The agency will have to power to pursue employers who do not comply with statutory provisions i.e. those who take the commercial risk not to provide statutory provisions such as holiday pay, statutory sick pay and maternity and paternity pay.
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Employment Rights Bill: Part Three Pay and Conditions for School Support Staff and Adult Social Care Sectors

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Employment Rights Bill: Part Four Trade Unions and Strike Action

Trade Union Provisions
Part Four of the Employment Rights Bill proposes a raft of changes to trade union provisions in Employment Rights Bill. A consultation was launched and the Government has now published its response to creating a modern framework for industrial relations. Headline changes include:

  • There will be a requirement for a 10-day notice period for industrial action (increased from seven days in the initial draft of the ERB).
  • The Government will use secondary legislation to provide the CAC with a framework for fines to be issued for non-compliance with the right of access.
  • The current ERB proposal to repeal the 50% industrial action ballot turnout threshold will not be enacted immediately but will require separate regulations, the aim being to dovetail this change with the introduction of e-balloting.
  • The current mandate for industrial action is valid for six months before it expires. The ERB will be amended to include a provision extending the mandate to 12 months.
  • To address the issue of mass recruitment into the bargaining unit to thwart trade union recognition, the maximum number in the bargaining unit will be set at the date when the CAC receives the application for recognition from the trade union. It can go down but it cannot go up for the purposes of the recognition process.
  • The ERB will be amended to allow access arrangements to include virtual access (either solely or alongside physical access).
  • Unions will no longer need to ballot members every ten years regarding whether they wish to maintain a political fund. This will be replaced with a requirement that unions give members notice of their right to opt out of the political fund every ten years.

The Government’s consultation response also makes clear commitments to industrial relations once the Employment Rights Bill has received Royal Assent. These include:

  • Delivering e-balloting and workplace balloting for trade union ballots
  • Lowering the admissibility requirements for the statutory trade union recognition ballot process.
  • Using secondary legislation to deliver greater rights and protections for trade union representatives and members
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Employment Rights Bill: Part Five Enforcement Action

Extension of Time Limits for Bringing Tribunal Claims
Currently employees have three months from the date of the alleged offence (dismissal, deduction of wages, discrimination etc) to bring a claim with the employment tribunal. Although there is scope to extend this in certain circumstances, including stopping the clock during a short period of ACAS conciliation. The Government amended the Employment Rights Bill in November 2024 and that update introduced an extension of the three-month time limit to six-months. This wasn’t in the initial draft of the Bill, nor was it in the Kings Speech.

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Employee Handbook Compliance Package

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Is Your Employee Handbook Compliant?

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My HR Compliance Package ensures your essential employment documents accurately remain up-to-date with new employment legislation and changes to existing legislation so you avoid complicated situations developing.

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