
The UK Employment Rights Bill of 2024: What You Need to Know
On October 10, 2024, the UK government unveiled its long-awaited Employment Rights Bill. This sweeping reform marks a significant shift in employment law, fulfilling the government’s pledge to deliver changes within the first 100 days of their term. The bill introduces a range of measures aimed at providing workers with stronger protections and greater flexibility. But what does it mean for businesses and employees? Here’s a breakdown of the key changes.
Unfair Dismissal Now a ‘Day One’ Right
Perhaps the most transformative aspect of the bill is the removal of the two-year qualifying period for unfair dismissal claims. Now, employees will have the right to challenge an unfair dismissal from their first day of work. However, the bill also introduces a statutory probation period, likely to be nine months, during which employers can terminate contracts without the risk of unfair dismissal claims. This change aims to balance protection for workers with flexibility for businesses, though the precise details of this probation period will be subject to further consultation.
New Rights for Zero-Hour Workers
Zero-hours contracts, long criticised for offering little job security, are getting a major overhaul. Workers who demonstrate regular hours over a defined period will be entitled to a guaranteed hours contract, reflecting the reality of their employment patterns. However, the bill still allows for flexibility—those who prefer the freedom of zero-hours contracts can remain on them. Additional protections include the right to reasonable notice of shifts and compensation for cancellations or last-minute changes. These measures aim to give workers more certainty and financial stability while maintaining some of the flexibility employers need.
‘Fire and Rehire’ Tactics Restricted
The controversial practice of "fire and rehire," where employers dismiss staff and then offer them new contracts with less favourable terms, is now significantly restricted. The bill makes it automatically unfair to dismiss an employee for refusing changes to their contract, except in exceptional circumstances. Employers will need to prove that contract variations are necessary to keep the business afloat and demonstrate that there is “genuinely no alternative.” This will likely prove a high bar to meet, offering workers stronger job security in situations of company restructuring.
Flexible Working as the Default
One of the most progressive changes introduced is the new default right to flexible working from day one. Employers will have to justify why a request for flexible working cannot be accommodated based on specific business needs. This shift acknowledges the growing demand for work-life balance, particularly post-pandemic, and makes flexible working arrangements the norm rather than the exception.
Enhanced Support for Working Families
The bill also strengthens support for working parents. Both parental leave and paternity leave become day-one rights, eliminating the current service requirements (one year for parental leave and 26 weeks for paternity leave). There’s also improved protection for pregnant women and new mothers returning to work, ensuring they are shielded from unfair treatment during this critical period.
Changes to Statutory Sick Pay (SSP)
A much-anticipated reform to Statutory Sick Pay (SSP) has also been introduced. The current three-day waiting period before SSP kicks in is abolished, meaning workers can claim SSP from the first day of sickness. Additionally, the lower earnings threshold, which previously excluded low-paid workers from receiving SSP, will be removed. This ensures that all employees, regardless of their earnings, have immediate access to financial support when they are unwell.
Strengthened Protections Against Harassment
Addressing workplace harassment has been a priority for campaigners, and the new bill makes strides in this area. Employers will now have a duty to take “all reasonable steps” to prevent sexual harassment, making them more accountable for the workplace environment. Importantly, employers will also become liable for harassment by third parties, such as clients or contractors. The bill introduces new whistleblowing protections for those reporting harassment, offering further safeguards for workers who speak out.
Looking Ahead: What’s Next for UK Employment Rights?
While the 2024 Employment Rights Bill introduces several key changes, some reforms are still on the horizon. The government has committed to a series of reviews and consultations, which could result in further legislation. Areas under review include:
- Carer’s Leave: Proposals to introduce new rights for employees with caring responsibilities.
- Single ‘Worker’ Status: A potential reclassification of worker statuses to simplify employment law.
- Self-Employment Rights: An examination of protections for self-employed individuals, who often fall outside traditional employee protections.
- Transfer of Undertakings: A review of laws governing business transfers and the protection of employee rights during such transitions.
- Health & Safety at Work: An update to workplace safety regulations.
- Collective Grievances: Strengthening the rights of workers to raise group grievances.
- Mandatory Social Value: New obligations for businesses to demonstrate social value in their operations.
- Freedom of Information Act for Private Companies: Extending transparency requirements to the private sector.
Conclusion
The UK’s 2024 Employment Rights Bill introduces several significant reforms aimed at improving job security, flexibility, and protection for workers. Employers will need to adapt quickly to these changes, ensuring they are compliant while navigating the challenges of maintaining business flexibility. For workers, these reforms offer a range of new rights and protections, marking a new era of employment law in the UK. As more reviews and consultations unfold, further reforms could be on the way, making this a critical time for both employees and employers to stay informed.
Keep an eye out for updates as the full scope of the UK’s employment law overhaul continues to take shape.