New Employment Rights Bill

14 October 2024

On 10 October 2024, the government announced the new Employment Rights Bill which will introduce a number of significant reforms to existing workplace rights and legislation.

The proposed changes include the following:

  • The existing two-year qualifying period for protection from unfair dismissal will be removed and employees will be protected against unfair dismissal from day one of employment.
  • There will be a statutory probation period for new employees. The length of the probation period is still to be determined through consultation, but 9 months is proposed.
  • New workplace rights will entitle employees to; paternity and parental leave from day one of employment.
  • There will be changes to parental bereavement leave so that it is available to all employees.
  • Statutory sick pay will be changed, removing the lower earnings limit for all workers and cutting out the 3-day waiting period before statutory sick pay starts.
  • There will be adjustments to the flexible working rules with the aim of making flexible working the default where practical.
  • All employers will be liable for harassment of employees by third parties and allegations of sexual harassment will be covered under protected disclosures.
  • There will be stronger protection for pregnant women and new mothers returning to work including protection from dismissal while pregnant, on maternity leave and within six months of returning to work.
  • There will be changes to collective redundancy consultation where 20 employees are affected across the whole business rather than just at one establishment.
  • There will also be changes to zero hours contracts to include a “guaranteed hours” contract subject to a qualifying reference period, reasonable notice of changes to shifts or working time and proportionate compensation for cancelled or curtailed shifts.

A new Fair Work Agency will be established to bring together existing enforcement bodies to enforce rights such as holiday pay and support employers looking for guidance on how to comply with the law.

The date for when the legislation is due to come into effect is still to be confirmed but early indications point to October 2026.