The Employment Rights Bill 2024: A Landmark Reform in Workers’ Rights

On 10th October 2024, the UK government introduced the Employment Rights Bill 2024, which promises to be one of the most significant overhauls of workers’ rights in decades.

This bill includes 28 key measures aimed at creating a fairer and more balanced workplace. Whether you’re an employer or employee, it’s important to familiarise yourself with these provisions, as they will shape the future of the working environment in the UK.  Employment Law expert Mohammed Balal looks at the key provisions contained in the Bill.

Key Provisions of the Employment Rights Bill 2024

1. Ending Exploitative Contracts

One of the most notable changes is the government’s aim to tackle exploitative zero-hours contracts and fire and rehire practices.

These practices have often been criticised for leaving workers with little job security, subject to last-minute changes in their work schedules and income.

Instead of an outright ban on zero-hours contracts, the bill introduces a requirement for employers to provide a guaranteed hours offer based on the average hours worked. This ensures that employees have more predictable work patterns while still maintaining some flexibility for businesses​

2. Day-One Rights Against Unfair Dismissal

Under current law, employees have to work for a company for at least two years before they can claim protection from unfair dismissal. However, with this bill, employees will have protection from day one, ensuring they can challenge unfair termination immediately.

The government hopes this measure will reduce the fear of retaliation that often prevents workers from standing up for their rights.

3. Statutory Sick Pay Reforms

Another critical provision is the reform of statutory sick pay, which will be available from the first day of illness, eliminating the current three-day waiting period.

In addition, the lower earnings limit for SSP will be removed, allowing more low-wage and part-time workers to benefit from this crucial support during times of illness.

This change is expected to significantly improve financial security for workers facing health challenges.

4. New Leave Entitlements

The bill introduces several new leave entitlements aimed designed to support employees during significant life events:

Paternity Leave: Fathers will have a statutory right to paternity leave from day one, a move welcomed by many as a necessary step towards shared parental responsibility.

Parental Leave: Employees will also have the right to unpaid parental leave from their first day of employment, acknowledging the importance of family time during crucial early years.

Bereavement Leave: A right to unpaid bereavement leave will be established, supporting employees during difficult personal times and recognising the emotional toll of losing a loved one.

5. Flexible Working as the Default

The bill makes flexible working a default right for employees from their first day of employment. Employers will only be able to refuse a flexible working request if they can provide clear evidence that the arrangement is unreasonable.

This move aims to create a more adaptable work environment, allowing employees to balance their professional and personal lives better​.

6. Gender Pay Gap Action Plans and Menopause Support

Large employers (those with 250 or more employees) will be required to create action plans addressing gender pay gaps and to support employees experiencing menopause ( See our previous article on Menopause in the Workplace).

This initiative aims to promote gender equality and ensure that workplaces are responsive to the unique challenges faced by employees at different stages of life.

7. Enhanced Protections for Pregnant Workers

The bill strengthens protections against dismissal for pregnant women and new mothers, ensuring that their rights are upheld during significant life transitions.

This includes prohibitions on dismissals related to pregnancy-related illness, which is a critical safeguard to ensure job security during a vulnerable time.

8. Repeal of Anti-Union Legislation

The bill also repeals the Strikes (Minimum Service Levels) Act 2023 and amendments to the Conduct of Employment Agencies and Employment Businesses Regulations 2022, which had previously restricted the rights of workers to strike and organise. It also strengthens protections for trade unions, empowering them to represent workers more effectively. This repeal is seen as a restoration of fundamental labour rights.

Next Steps: Consultations and Future Reforms

 

In conjunction with the Employment Rights Bill, the government released a policy paper titled “Next Steps to Make Work Pay,” which outlines forthcoming consultations aimed at further refining and expanding workers’ rights. Key areas of focus include:

• Right to Switch Off: A consultation on a statutory Code of Practice to ensure that employees can disconnect from work outside of their designated hours. This is increasingly important in a world where remote work is common.
• Equality (Race and Disparity) Bill: This proposed legislation will require large employers to report on ethnicity and disability pay gaps, promoting transparency and accountability in wage practices.
• Single Status of Worker: A potential move towards simplifying employment classifications, transitioning to a two-tier system that would clarify workers’ rights and status. This initiative aims to reduce confusion and ensure equitable treatment across different types of employment.
• Parental and Carer’s Leave Reviews: The government will explore options to enhance leave entitlements for parents and caregivers, reflecting the evolving needs of the workforce.
• Workplace Surveillance: A consultation regarding the use of surveillance technologies in the workplace will address privacy concerns and ethical considerations, ensuring that worker monitoring is both fair and transparent.
• TUPE Regulations Review: A call for evidence will examine the Transfer of Undertakings (Protection of Employment) regulations, ensuring protections remain relevant in changing work environments.
• Collective Grievances: Collaboration with Acas (Advisory, Conciliation and Arbitration Service) to improve the handling of collective grievances, fostering a more effective grievance process.
• Health and Safety Reviews: A comprehensive review of existing health and safety guidance to enhance protections for workers, particularly in light of evolving workplace hazards.

 

What Does This Mean for Employers and Employees?

 

For employees, the bill offers significant new protections and rights that aim to improve job security and work-life balance. For employers, while these changes could lead to greater administrative duties, particularly around flexible working and leave entitlements, the long-term goal is to create a more equitable and productive workplace environment.

Employers should take the time to review and update their employment policies and contracts to ensure compliance with these new regulations. Many of these changes are expected to take time to implement, with some consultations still ongoing, so there is an opportunity to engage with the process and ensure that your business is prepared for the upcoming reform.

The Employment Rights Bill 2024 marks a major shift in the UK’s employment landscape, with the government promising further consultations and reforms to adapt to a changing labour market. Both employers and employees should keep an eye on future developments as the bill progresses through Parliament.

 

What’s Next?

 

The Employment Rights Bill 2024 represents a major shift in the UK’s employment landscape. As it progresses through Parliament, employers and employees alike should keep an eye on future developments. There will be consultations on several areas, including the right to switch off after working hours, ethnicity and disability pay gap reporting, and enhanced leave entitlements for parents and carers​.

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Over the coming weeks, we will take a closer look at how these proposed changes will affect employers and offer guidance on what you can do to prepare.

In the meantime, if you require further advice, please contact Mohammed on 0161 764 4062 or email mbalal@butcher-barlow.co.uk