Employment Rights Bill announcement – What you need to know

On 10th October, the government introduced the Employment Rights Bill to set out their proposed changes to legislation that had been previewed in their manifesto during the election campaign.

We have set out below the key changes proposed in the Bill, but with a caveat that the legislation is subject to ongoing consultation so there is likely to be some amendments before it passes into law. It is also worth noting that the earliest any of the changes are likely to come into effect is 2026 and probably the Autumn of that year.

The Bill sets out the following proposed legislation:

1. Protection from unfair dismissal to become a day one right. However, there is likely to some flexibility around here as consultation is ongoing around whether a new employee needs to pass their probation period before gaining the right in full. The length of probation is also a matter for consultation with the government favouring a nine month term.

2. Unpaid parental leave and paternity leave to become day one rights.

3. A new statutory right to bereavement leave.

4. Flexible working will be the “default” from day one of employment with a duty on employers to accommodate requests as far as is reasonable.

5. An end to Zero hours contracts and instead a right for workers to have a contract that reflects the hours they regularly work over a 12 week reference period.

6. The right for workers to get “reasonable notice” of any changes to their shifts and the right to compensation for ant shifts cancelled without such reasonable notice.

7. An end to fire and rehire practices – although the government says it plans to maintain the ability of employers to restructure, to remain viable, if there is no other alternative.

8. Removing the lower earnings limit for entitlement to Statutory Sick Pay.

9. Removing the three waiting days for Statutory Sick Pay.

10. Increasing protection from sexual harassment.

11. Increasing protection for pregnant women and new mothers by making it unlawful to dismiss a woman who has had a baby for six months after her return to work (there will be some exceptions to this).

12. Requirement for gender pay gap action plans for larger employers.

13. Menopause action plans to be published by larger employers.

To enforce the above measures through a new enforcement body called the Fair Work Agency will be set up.