Introduced by Parliament in October, the Employment Rights Bill supports the new Government’s plan to ‘Make Work Pay’, setting out a range of proposed changes which looks set to be the biggest update in employment rights for a generation.
Overall, it aims to modernise and strengthen protections for employees, increasing ‘day one’ rights for newly-employed workers and giving added influence to trade unions. Many aspects will undergo a consultation period before full implementation, meaning further detail will be determined in 2025 with little likely to be implemented before 2026. However, there are some changes already in force and some expected sooner, and with several carrying potential costs to employers, it’s a good idea for business owners to familiarise themselves with what is expected to change.
A summary of the changes proposed by the Bill are as follows.
Headline Reforms in the Employment Rights Bill:
New rights to paternity, bereavement, and parental leave from the first day of employment.
Flexible working will become the standard unless proven unreasonable by employers.
Individuals working consistent hours on low or zero-hours contracts will have the option to transition to a guaranteed-hours contract, providing greater income security.
The current two-year qualifying period for protection against unfair dismissal will be eliminated. The Government will also consider introducing a statutory probation period to allow for thorough assessment of a new employee’s suitability.
Enhancement of Statutory Sick Pay (SSP) to eliminate the earnings threshold for SSP eligibility and remove the waiting period for sick pay claims.
Introduction of bereavement leave with considerations for both employees and employers.
Expanded dismissal protections for pregnant employees, those on maternity leave, and new mothers up to six months after their return.
Minimum wage adjustments will take the cost of living into account, removing discriminatory age bands.
The Fair Work Agency will enforce holiday pay requirements and enhance SSP protections.
Further Consultation Topics: The Government also seeks public feedback on additional potential reforms:
Establishing a “right to disconnect,” preventing off-hours work communications except in emergencies.
Mandatory reporting of ethnicity and disability pay gaps by large employers.
Simplifying employment status categories with the aim of transitioning to a more streamlined framework.
Reviewing the parental and carer leave systems to ensure they meet the needs of both employers and workers.
For more details on the full Employment Rights Bill, please click here.
If you need help reviewing your policies in preparation for any of these proposed changes, Ambition HR is here to help. If you feel like you’d benefit from an informal chat about your business needs, you can schedule a call online today.
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