The UK government introduced the Employment Rights Bill in Parliament on 10 October 2024, within 100 days of taking office. The government said the Employment Rights Bill brings forward 28 individual employment reforms, from ending exploitative zero hours contracts and fire and rehire practices to day one rights for paternity, parental and bereavement leave.
The Bill follows the commitment in the July King's Speech and is accompanied by a Next Steps document for the government's wider Make Work Pay plan.
Key reforms
- Unfair dismissal: the two-year qualifying period for protection from unfair dismissal will be removed. The government will consult on a new statutory probation period for new hires and has said its preference is nine months, according to its explainer on the Bill.
- Zero hours: workers on zero hours and low hours contracts will have the right to a guaranteed hours contract if they work regular hours over a defined period, while being able to stay on zero hours terms if they prefer.
- Fire and rehire: loopholes allowing fire and rehire and fire and replace practices will be closed.
- Sick pay: statutory sick pay will be strengthened by removing the lower earnings limit and the waiting period.
- Family rights: day one rights to paternity and parental leave, a new right to bereavement leave and stronger protection from dismissal for pregnant women and new mothers, including for six months after returning to work.
- Flexible working and equality: flexible working will be the default unless the employer can show it is unreasonable, and large employers must produce action plans on gender pay gaps and menopause support.
- Enforcement: a new Fair Work Agency will bring together existing enforcement bodies and enforce holiday pay for the first time.
The Bill also repeals the previous government's trade union legislation, including the Strikes (Minimum Service Levels) Act 2023.
What employers should do now
The Employment Rights Bill now begins its passage through Parliament, and much of the detail, such as the reference period for guaranteed hours and the length of any statutory probation period, will be set through consultation and secondary legislation. Employers should start mapping where the reforms will bite: recruitment and probation practices, use of zero hours and low hours contracts, contractual change programmes, sick pay budgets and family leave policies. Businesses with large hourly paid workforces, such as retail, hospitality, logistics and care, are likely to see the greatest operational impact.
