Biggest upgrade to Rights at Work for a Generation

The government has today (10 October 2024) unveiled the Employment Rights Bill, which they say will represent the “biggest upgrade to rights at work for a generation.”

Labour’s ambitious Employment Rights Bill aims to significantly enhance workers’ protections and improve pay. While many of the proposed changes will take time to implement, some will take immediate effect.

The bill will bring forward 28 individual employment reforms, from ending exploitative zero-hour contracts and fire and rehire practices to establishing day one rights for paternity, parental and bereavement leave for millions of workers. Statutory sick pay will also be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in.

We have set out some of the significant reforms below:

Day-One Rights

One of the most significant changes is the introduction of day-one protection against unfair dismissal for all workers, regardless of length of service. Additionally, new parents will now have the right to paternity and unpaid parental leave from their first day of employment.

Sick Pay

The bill also extends statutory sick pay to the first day of illness, benefiting millions of workers. While the basic rate remains unchanged, the government plans to remove the lower earnings limit for all workers, potentially increasing the number of people eligible for sick pay. Workers will get rights to sick pay from day one, rather than from day four.

Probationary Periods

To address concerns about new hires being dismissed without sufficient reason, the government will consult on a statutory probationary period. However, this period will still allow employees to claim unfair dismissal if necessary.

The probation period will be consulted on and introduced in autumn 2026 to coincide with the enforcement of the new rights. The government now favours a limit of nine months– lengthened after pressure from businesses

Zero-Hour Contracts

Workers on zero-hour contracts will gain the right to request guaranteed working hours if they consistently work regular hours over a defined period. This is a significant step towards improving job security for many workers.

Fire and Rehire

The bill seeks to ban the controversial practice of “fire and rehire,” which involves employers dismissing staff and rehiring them on worse terms. While there will be exceptions for businesses facing severe financial difficulties, this measure is expected to provide greater protection for workers.

Unpaid Parental Leave

Parents will be eligible to unpaid parental leave, from day one of employment, instead of one year.

Unpaid Bereavement Leave

This will also become a day one right.

Paternity Leave

Fathers will be eligible to paternity leave from day one of employment. Previously they needed to be employed for 26 weeks before becoming eligible.

Flexible Working

The government intends to make flexible working the default option, subject to practical considerations. This change aims to promote greater work-life balance, address gender pay gaps and support female employees through menopause.

Minimum wage

The government plans to change the remit of the Low Pay Commission, taking into account the cost of living for minimum wage and removing all age bands setting a lower minimum wage for younger staff. It will mean a pay rise for hundreds of thousands of young workers.

Overall, Labour’s employment rights bill represents the biggest uplift in workers’ rights in a generation.

However, there are still details to be worked out, but many new measures won’t be introduced swiftly. The bill itself is not expected to pass into law until June or July 2025.

Consultations will continue on some issues beyond this, with changes implemented subsequently in secondary legislation. The new rights to challenge unfair dismissal will not come into effect until autumn 2026.