The Employment Rights Bill (which came into action in October 2024) introduces significant reforms to UK employment laws, marking the most comprehensive update in decades. The bill focuses on improving job security, fairness, and workers’ wellbeing while fostering economic growth and productivity. Here’s a breakdown of the major changes it proposes:
- Tackling Job Insecurity:
- Zero-Hours Contracts: The bill curbs the misuse of zero-hours contracts by introducing rights to guaranteed working hours, advance notice of shifts, and compensation for last-minute cancellations.
- Ending “Fire and Rehire”: It limits unfair dismissal practices linked to contract changes, making it automatically unfair for employers to dismiss workers for refusing changes unless there is no viable alternative.
- Unfair Dismissal Protection: Workers will receive protection against unfair dismissal from the first day of employment.
- Collective Redundancies: Employers will be required to consult with staff across the entire business when planning redundancies, not just at individual locations.
- Improving Family-Friendly Workplace Policies:
- Paternity and Parental Leave: The bill extends the right to paternity leave and unpaid parental leave from the first day of employment, allowing parents greater flexibility.
- Bereavement Leave: It introduces the right to unpaid leave for grieving the loss of a loved one.
- Pregnancy Protection: Strengthened protections ensure that pregnant employees and those returning to work after maternity leave cannot be unfairly dismissed for up to six months after their return.
- Promoting Workplace Equality and Wellbeing:
- Sexual Harassment Prevention: Employers will have a stronger responsibility to prevent sexual harassment, including from third parties.
- Gender Pay Gap Reporting: Companies will need to report gender pay gaps for outsourced workers and develop action plans to address these disparities.
- Fair Compensation:
- Statutory Sick Pay: Access to Statutory Sick Pay will improve by removing lower income thresholds and eliminating waiting periods.
- Tipping Fairness: The bill ensures workers receive their tips in full, with input into tipping policies.
- Adult Social Care Sector: Fair Pay Agreements will be established to improve pay conditions in the adult social care industry.
- Trade Union Reforms:
- Trade Union Rights: The bill enhances trade union powers by repealing restrictive laws like the 2023 Strikes (Minimum Service Levels) Act and the 2016 Trade Union Act. This will give unions more flexibility to organize and represent workers.
- Stronger Enforcement Mechanisms:
- The creation of the Fair Work Agency will bring together various enforcement functions, including ensuring compliance with minimum wage laws, overseeing employment agencies, and handling tribunal awards. The agency will also cover rights related to holiday pay and sick pay.
What This Means for UK Workers:
This bill represents a step forward for UK workers, particularly those in insecure employment. By addressing exploitative zero-hours contracts and strengthening protections against unfair dismissal, it aims to improve job stability. Workers will also benefit from enhanced family-friendly policies, such as immediate access to parental leave and better protections for those who are pregnant.
Low-paid workers, particularly in the care sector, will see improvements in their pay conditions, while increased transparency around gender pay gaps will help address workplace inequality. The bill also empowers trade unions, providing them with greater freedom to negotiate on behalf of workers.
Ultimately, the Employment Rights Bill is designed to provide UK workers with better security, fair pay, and stronger workplace protections, ensuring that businesses and employees alike contribute to a more equitable and productive economy.
For more information on the Bill, please visit the Government website.
Article written by Bethanie-Taylor Grenfell, Marketing & HRC Executive
