On 10 October 2024, the Government introduced the long-awaited Employment Rights Bill (The Bill, delivering on Labour’s promise to legislate within 100 days.

Billed as “the biggest upgrade to workers’ rights in a generation”, the around 310-page Bill outlines over 30 significant reforms, with further detail to follow through consultation and secondary legislation.

Most changes are expected to take effect from 2026 after a transition period.

Headline reforms

There a number of changes within The Bill to consider, including:

Unfair dismissal: The Bill removes the two-year qualifying period for unfair dismissal, making it a day-one right for employees.

Protections will not extend to workers or individuals not yet in post. Probationary periods will be retained, with a proposed statutory length of nine months and “lighter-touch” processes for dismissal. Implementation is not expected before autumn 2026.

Tribunal time limits: The time limit for bringing Employment Tribunal claims will double from three to six months, allowing more time for resolution but potentially increasing claim volumes.

Zero-hours contracts: While not banned, employers must offer guaranteed hours based on actual work patterns and provide reasonable notice for shifts. Short-notice cancellations will trigger compensation.

Flexibility will remain for genuinely temporary work or where contracts end before the reference period.

Fire and rehire: The Bill will make it automatically unfair to dismiss and rehire employees solely to impose new terms, except in cases of serious financial difficulty where no alternatives exist. The threshold for lawful use is high, with a strong emphasis on prior consultation.

Collective consultation: Dismissals at multiple sites will now be aggregated for the purpose of triggering collective consultation, with the protective award cap increased from 90 to 180 days’ pay.

Harassment: Employers will face stricter duties to prevent workplace sexual harassment, including liability for third-party harassment. Disclosures about harassment will also gain whistleblowing protection.

Flexible working: Employers must reasonably justify any refusal of flexible working requests and explain their decisions. However, the core structure of the right to request remains unchanged.

Other changes include:

  • Trade unions: Existing restrictions on certain types of union activity will be rolled back.
  • Statutory Sick Pay: Staff will benefit from entitlement from day one, regardless of earnings.
  • Parental rights: Day-one rights for paternity and unpaid parental leave and a new, expanded bereavement leave.
  • Maternity protections: There will be stronger redundancy protections for pregnant and returning mothers.
  • Equality action plans: Large employers will be required to publish plans addressing gender equality, pay gaps, and menopause support.

What’s next?

This is the start of a longer process. The Bill must pass through Parliament and will rely heavily on consultations and secondary legislation for detail.

Wider reforms, such as the Right to Switch Off, changes to employment status, and race/disability pay gap reporting, are being taken forward through other channels.

If you have any questions about these upcoming changes or would like guidance on existing employment law issues, please get in touch.

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