On 10 October, the UK government published the long-awaited Employment Rights Bill which introduces some of the biggest reforms to workplace rights for decades.
As anticipated, here are the key takeaways for employers to be aware of:
- Basic rights from day one. Employees will now have basic employment rights from their first day of their employment. This includes protection from unfair dismissal, thereby ending the existing two-year qualifying period, and rights to paternity and bereavement leave.
- Statutory probation period. There will be a new 9-month statutory probation period for new hires to ‘allow for a proper assessment of an employee’s suitability to a role’ and giving employers greater flexibility to dismiss.
- Collective redundancy consultations. Employers will be required to carry out collective redundancy consultations where it proposes to make 20 or more redundancies across the organisation as a whole and not just at a single establishment.
- Liability for harassment by third parties. Employers will be liable for third party harassment in the course of employment and must take all reasonable steps to prevent this. This is a more proactive duty than currently.
- Ban on zero-hours contracts. While workers will be permitted to stay on zero-hours contracts if they choose to, they will now have a right to a guaranteed hours contract if they work regular hours over a defined period.
- Restrictions on “fire and rehire” practices. The practice of “fire and rehire,” where employees are dismissed and then rehired on less favourable terms, will be subject to greater restrictions.
- Flexible working. Unless an employer can prove that it is ‘unreasonable’, flexible working will become the norm for all workers, making it more difficult for employers to refuse.
- Statutory Sick Pay. The 3-day waiting period and lower earnings limit to receive Statutory Sick Pay will be removed and employees will be entitled to Statutory Sick Pay from the first day of illness.
- Right to statement of trade union rights. Employers will be required to provide a written statement informing workers that they have the right to join a trade union at the same time they provide the section 1 statement.
While most of these reforms are unlikely to come into force until autumn 2026, given the significance of these changes it is important for employers to start preparing now to ensure they are able to fully comply.
If you need any support with navigating these changes such as providing training, reviewing policies, amending employment contracts and issuing internal communications, please do get in touch with a member of the team.