Reforms Under the Employment Rights Bill 2024
In 2024, the UK Labour government introduced the Employment Rights Bill, a draft piece of legislation proposing to strengthen workers’ protections by reforming existing employment law.
Under the draft bill, employment rights are applied to those defined as an “employee” and a “worker” as per the Employment Rights Act 1996. The term “worker” means an individual who either works under a contract of employment or who performs work services for another party. Consequently, the Act applies to situations where the worker is under current employment or where an individual is engaged in work services for another party outside of an employment relationship.
The new legislation will be implemented in the UK by autumn 2026. However, changes could still be made before the bill is enacted.
Unfair Dismissal
The bill proposes introducing key employment rights from the first day of employment. For example, workers will have the right to claim unfair dismissal against their employer from day one of their employment. Under the existing law, such employment rights were subject to a two-year qualifying period.
The proposed reform means workers will be granted greater employment security from the outset. However, workers are subject to a probationary period of up to nine months, allowing employers to dismiss workers more freely within that period without following the more burdensome procedure of dismissal.
Statutory Sick Pay
The Employment Rights Bill also seeks to reform the statutory sick pay (SSP) system. Sick pay will now be available from the first day of illness, and the lower earnings limit for SSP will be removed.
Previously, employees must prove they have been ill for three or more consecutive days to qualify for SSP and must earn an average of at least £123 per week. Under the new regime, there will be no lower earnings limit, and employees will be eligible for SSP from the first day of illness. This ensures that employees in part-time or unsecure employment will no longer be excluded from support.
Zero-Hours Contracts
The bill introduces new rules for workers under zero-hours contracts. Zero-hours workers working regular hours for a sustained period now have the right to request a guaranteed-hours contract. This will be based on a reflection of the hours they work during a 12-week period. However, workers who wish to remain under a zero-hours contract will still have the right to do so.
Employers must also give zero-hours workers reasonable notice of upcoming work shifts and compensation if shifts are cancelled at short notice. This will enable casual workers to earn a more predictable income each month.
“Fire and Rehire” Practices
The practice of “fire and rehire” where employers dismiss staff only to re-employ them on less favourable terms has been controversial. The new bill makes it automatically unfair to dismiss a worker to change their contract unless there are exceptional circumstances, such as serious financial difficulty faced by the business. The ban on such “fire and rehire” practices aim to stop companies from abusing their power during contract negotiations.
Flexible Working
The bill introduces flexible working as a default for all workers. Employees will have the right to request flexible working arrangements from the first day of employment. Flexible working includes a working-from-home scheme and/or flexible working hours.
Employers have the right to decline such requests if deemed unreasonable, and the grounds for refusal were based on well-documented business reasons.
Such grounds include:
- The burden of additional costs;
- Detrimental effect on ability to meet customer demand;
- Inability to re-organise work among existing staff;
- Inability to recruit additional staff;
- Detrimental impact on quality;
- Detrimental impact on performance;
- Insufficiency of work during the period the employee proposes to work;
- Planned structural changes;
- Any other grounds specified by the Secretary of State in regulations.
The new clause intendeds to promote a better work-life balance and to support workplace inclusivity.
Protections Against Harassment
Employers will have new duties to prevent workplace harassment. The bill includes measures that make businesses liable for failing to prevent harassment from third parties, such as customers or clients. This change acknowledges the growing number of workers who experience harassment by third parties during the course of their employment.
Entitlements to Leave
The bill makes paternity leave and unpaid parental leave accessible from day one. The government estimates this will benefit working parents who previously may have had to wait months or years before accessing such entitlements.
Additionally, a new right to unpaid bereavement leave is also included, offering employees increased support during personal loss from day one of their employment.
Employers and employees must prepare for significant adjustments as the bill moves towards enactment. Employers will have to update contracts, training, and HR policies to ensure compliance, while workers benefit from stronger protections and improved working conditions.
The Employment Rights Bill 2024 represents a significant step forward in the UK’s approach to labour rights. By introducing entitlements from day one of employment, curbing exploitative practices, and creating a framework for fair and flexible work, the bill sets the foundation for a more secure and equitable future for millions of UK workers.
Comments are closed.