Legislation
The Employment Rights Bill
Date
Effective 10 October 2024
Summary
Effective now
The Employment Rights Bill officially came into effect on 10 October 2024, introducing significant reforms to strengthen workers’ rights and address unfair employment practices.
While the bill is now law, further detail on many policies will be introduced through regulations following Royal Assent. To support this, the government plans to consult widely in 2025, seeking feedback from stakeholders on several areas of reform. Some consultations will start by the end of this year, including topics like zero-hour measures for agency workers, updates to trade union legislation, and adjustments to Statutory Sick Pay.
With most reforms expected to take effect no earlier than 2026, the government is committed to giving businesses sufficient time to prepare. Extended timelines and guidance will be provided where needed to ensure a smooth transition for organisations. Here’s a recap of the bill’s key points:
1. Zero-hour contracts The bill proposes to eliminate zero-hour contracts, which may be deemed exploitative, ensuring workers have contracts that reflect their actual working hours and provide reasonable notice for shift changes.
2. Fire and rehire It seeks to reform the law to address the controversial “Fire and Rehire” practices, aiming to provide effective alternatives to avoid them.
3. Day-one rights The bill guarantees day-one rights for all workers, including parental leave, sick pay, and protection against unfair dismissal.
4. Statutory Sick Pay It plans to remove the lower earnings limit for Statutory Sick Pay, making it accessible to all workers immediately, without any waiting period.
5. Flexible working Flexible working arrangements will become the standard from the first day of employment, with employers expected to make reasonable accommodations.
6. Protection for new mothers The bill makes it unlawful to dismiss a new mother within six months of returning to work, barring specific exceptional circumstances.
7. Single enforcement body A new Fair Work Agency will be established to oversee the enforcement of workplace rights.
8. Fair pay agreement There will be a fair pay agreement introduced for the adult social care sector, with the possibility of extending this to other sectors in the future.
9. Trade union legislation The bill will update trade union legislation, lifting restrictions on trade union activities and encouraging good faith negotiations.
10. Statutory recognition It will simplify the process for workers to gain access to trade unions, ensuring easier statutory recognition.
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