Employment Rights Bill: Major Reforms Set to Transform UK Workforce
In an attempt to modernise the nation’s labour laws, the United Kingdom government has introduced the Employment Rights Bill. The bill aims to balance the relationships between employers and employees by fostering a fairer and more equitable workplace culture.
Provisions of the Employment Rights Bill
The Employment Rights Bill has several provisions for enhanced job security, meritocracy, and fairer pay within firms. Several key provisions have been laid out to help workers in the United Kingdom:
Protection Against Unfair Dismissal
Under the new bill, employees in England, Scotland, and Wales will gain protection against unfair dismissal from their first day of employment, a significant shift from the previous two-year qualifying period. However, a nine-month probationary period will allow employers to dismiss staff more easily during this initial phase. These changes are scheduled to take effect in autumn 2026.
Zero-hours Contracts
Under the bill, employers will need to offer guaranteed hour contracts based on the average hours worked over a 12-week period. This will allow employees more freedom regarding the flexibility of hours. Additionally, employers will need to offer precise and reasonably timed notices for shift changes and compensation for cancellations and/or early terminations.
Flexible Working Arrangements
Flexible working arrangements will be the ‘default’ expectation. As a norm, employers must offer employees the freedom to choose their schedule from the outset of the contract. This also covers remote working options. Furthermore, while refusal of such requests can be possible in some cases, employers will need to offer a valid reason for refusal.
Statutory Sick Pay
The bill also proposes a lower earnings limit and the removal of the waiting period for Statutory Sick Pay (SSP). This will extend the SSP’s eligibility to approximately 1.3 million low-paid workers. Additionally, employees will be entitled to 80% of their weekly salary as sick pay from the first day of illness, reducing financial burdens due to the inability to work during those days.
Parental and Bereavement Leave
Provisions for unpaid parental and bereavement leave will be available from the first day of employment. In other words, this means the elimination of the previous one-year service requirement. This change aims to provide quick support for employees during significant family events.
Fire and Rehire Practices
The bill seeks to prohibit the practice of ‘fire and rehire’ in most circumstances, preventing employers from dismissing and rehiring workers on less favourable terms. Exceptions will apply if a company faces insolvency, balancing business viability with employee rights.
Consultations and Future Developments
The government has engaged in extensive consultations with business groups, trade unions, and civil society to refine the bill’s provisions. While some measures, such as the ‘right to switch off’ and the creation of a ‘single status of worker,’ are not included in the current bill, ongoing discussions suggest potential future reforms.
Final Words
The introduction of the workplace fairness bill will be beneficial in the long term, for it will result in more work-life balance for the UK’s population, and higher employee satisfaction and retention rates. Still, the bill shows the fast-paced nature of human resources in the United Kingdom and how companies are expected to keep up with the regulatory changes. And while this can seem overwhelming, with the proper support, you should be able to navigate this with ease.
Need support? Contact 3E Accounting for a range of HR consulting and advisory and contract drafting services in the United Kingdom.
