Employment Rights Bill update

Law and Labour — Sun, 23 Mar 2025 12:20:27 +0000

The Employment Rights Bill will bring sweeping changes to many areas of employment law once its provisions come into force. Its reforms will affect unfair dismissal, flexible working, statutory sick pay (SSP), family leave, fire and rehire, zero hours contracts and trade union law.

Between October and December 2024, the government consulted on four areas of the Bill: zero hours contracts, fire and rehire, trade unions and SSP. In March 2025, the government published its response to those consultations and also announced a series of amendments to the Bill.

The amendments include:

Zero hours contracts – the right to request contracts with guaranteed hours will apply to agency workers. Employers will have a duty to provide workers with a range of information about their right to guaranteed hours. Flexible working – there will be a new requirement for any refusal of a flexible working request on one of the statutory grounds to be reasonable. Employers will also have to explain their reason for refusal. SSP – low paid workers will no longer need to earn above the lower earnings limit to qualify for SSP. They will receive either 80% of their average weekly earnings or the current rate of SSP, whichever is lower. SSP will be payable from the first day of sickness absence. Workplace harassment – employers will have a duty to take all reasonable steps to prevent harassment of their employees by third parties. Employers could face civil claims for harassment where they have failed to take such steps. Redundancy collective consultation – the maximum period of the protective award will increase from 90 days to 180 days. Trade unions – there will be a series of changes to trade union and strike rules, such as changing the current notice period for industrial action from 7 to 10 days. Industrial action mandates will expire after 12 months instead of after 6 months.

We continue to monitor for further amendments.

Photograph: “people-400818_1280”.

Employment Rights Bill introduced

Law and Labour — Tue, 22 Oct 2024 14:31:05 +0000

On 10 October 2024, a new Employment Rights Bill (the “Bill“) was introduced into the House of Commons. The Bill contains a suite of provisions covering a wide range of employment rights. The Government has announced its intention to consult on the changes proposed in the Bill with the expectation that most of its reforms will not take effect before 2026. It is hoped that will give businesses sufficient time to prepare for the changes.

The Government has published 10 factsheets that provide further details of the measures included in the Bill. The factsheets cover:

zero hours contracts; unfair dismissal; trade unions; statutory sick pay; school support staff negotiating body; fire and rehire; the Fair Work Agency; bereavement leave, paternity leave and unpaid parental leave; the adult social care negotiating body; and the Employment Rights Bill overview.

Each factsheet typically sets out the current legal framework applicable to a particular employment right. It then describes the Government’s aims for the proposed changes and briefly describes the proposals.

The table below summarises some key proposals as described in the relevant factsheet:

Zero hours contracts Employers will be required to offer qualifying workers guaranteed hours reflecting the hours worked during a 12-week reference period. A qualifying worker may elect to reject an offer of guaranteed hours and instead remain on their current contract. Employers will be required to provide qualifying workers with reasonable notice of shifts and changes to these. If an employer cancels, moves or curtails a shift at short notice, they will be required to pay the affected workers. Unfair dismissal Employees will automatically have protection from unfair dismissal from the first day of employment, subject to a statutory probation period. The statutory probation period will last for nine months during which a “lighter touch” dismissal process will apply. The right to written reasons for dismissal will apply once the statutory probation period has concluded. Fire and rehire Where employees are dismissed for failing to agree to a change in their employment contract, the dismissal will be automatically unfair. It will also be unfair to dismiss an employee in order to replace them or to re-engage them on varied contractual terms. The employer may have a defence to such a dismissal if it can show: the business was facing financial difficulties that affected its viability; the contractual variations proposed were to eliminate, prevent or mitigate the effects of such difficulties; and changing the contract was unavoidable. The employer is required to act fairly in making the dismissal, which must be fair in all the circumstances. Family-related leave Bereavement leave will become a new, day one right. Employees may take at least one week’s leave within a 56-day period. There will no longer be any qualifying period for the right to take paternity leave or unpaid parental leave. Employees will no longer have to take paternity leave prior taking shared parental leave. Fair Work Agency (FWA) A new advisory body on employment rights, called the Fair Work Agency, will be set up. The FWA will also have the remit to investigate and take enforcement action for breaches of employment law. The FWA will be an offshoot of the Department of Business and Trade, with its functions [...]

Law and Labour » Statutory sick pay

Employment Rights Bill update

Employment Rights Bill introduced