The Employment Rights Bill 2024: What do we know and what’s still unclear?
Written by Ian Grimshaw | Employment Team | 11 October 2024
The Employment Rights Bill (2024), according to the government, promises major changes to the UK's employment laws, designed to enhance worker protections while also increasing transparency and fairness in the workplace.
We have all been waiting with bated breath for the Bill to drop and, now it has, it has been met with something of a shrug – after all, it looks like it is not going to be in force until Autumn 2026 and, in addition, many of the core parts remain unclear, with details still being ironed out through consultations and ongoing legislative processes.
Key Reforms
1 Day-One Rights and Probationary Periods
The Bill introduces day-one protection against unfair dismissal, which marks a major departure from the current two-year service requirement. To offset this, the government proposes a statutory probation period, likely to be set at a maximum of nine months, allowing businesses to assess new hires’ suitability without the immediate risk of unfair dismissal claims.
What’s unclear:
How will the probation period work in practice? While a nine-month period has been proposed, there is still debate on whether this is too long or too short: trade unions have pushed for a shorter period, while businesses in certain sectors have raised concerns that the new timeline might not provide enough flexibility. The final structure of the probationary process and the criteria for “fair” dismissals during this period remain subject to consultation.
2 Flexible Working as the Default
The Bill aims to make flexible working the default unless employers can demonstrate clear reasons why it isn't feasible This change reflects the growing demand for work-life balance and remote work options, and it will likely affect businesses in sectors where flexible arrangements are harder to implement.
What’s unclear:
Grounds for refusal: Currently, employers can reject flexible working requests based on eight specific grounds, including additional costs and business impact; however, whilst it appears that the eight grounds will be maintained, the new Bill introduces a requirement for employers to justify refusals in writing and ensure that it is “reasonable”, making the refusal process more transparent. The exact thresholds for what constitutes a "reasonable" refusal remain unclear and could be a source of legal disputes if not clearly defined in the final legislation.
3 Zero-Hour Contracts and Guaranteed Hours
The Bill takes aim at exploitative zero-hour contracts, requiring employers to offer guaranteed hours after a worker has established a consistent work pattern over a defined period (expected to be 12 weeks). Additionally, workers will gain the right to reasonable notice for shift changes or cancellations, with compensation due if this notice is not provided – this can actually be traced back to the Conservative government’s proposals.
What’s unclear:
Definition of “exploitative” zero-hour contracts: the Bill targets only "exploitative" zero-hour arrangements, but the exact definition of this term is yet to be finalised. Businesses in industries reliant on seasonal or flexible labour, such as hospitality and retail, will need further guidance to determine whether they will need to overhaul their current contract and rota structures.
4 Statutory Sick Pay (SSP)
The Bill makes statutory sick pay (SSP) available from day one, abolishing the three-day waiting period and removing the lower earnings limit, ensuring all workers are eligible regardless of their income.
While the new sick pay arrangements provide greater security for workers, businesses will need to adjust to the immediate cost implications of providing SSP from day one, especially in sectors with high turnover or large numbers of part-time staff. The financial burden this places on businesses, particularly small enterprises, is a growing concern especially as SSP can no longer be partially re-claimed.
5 Strengthened Family Leave Rights
Day-one rights for parental leave, paternity leave, and bereavement leave are also introduced under the Bill. This extends protections to all employees, regardless of length of service, ensuring that workers can access these essential benefits immediately. The right to bereavement leave will also be expanded to cover broader family relationships, rather than just parental relationships.
6 Trade Union Access and the Fair Work Agency
The Bill also strengthens the position of trade unions, making it easier for them to access workplaces and advocate for workers. Additionally, the establishment of a Fair Work Agency will streamline enforcement of employment laws, including minimum wage and holiday pay regulations.
What’s unclear:
Scope of union access: While the Bill emphasises increased union access, the extent to which businesses will need to accommodate union activities is still under discussion. Businesses in sectors with historically low union involvement may face new logistical challenges.
7 Gender Pay Gap and Inclusivity
Large employers will be required to develop action plans to address gender pay gaps and provide greater support for employees going through menopause. This adds to the growing focus on diversity and inclusion in the workplace, with further mandatory reporting likely to increase administrative and compliance burdens for large organisations.
Conclusion: Preparing for the Uncertainties
The Employment Rights Bill represents a comprehensive shift in the UK’s employment laws, with reforms expected to be fully implemented by Autumn 2026; however, many critical details are still being debated, particularly around the probationary periods, reasons for rejecting flexible working requests, and the definition of exploitative zero-hour contracts. Sadly, the certainty people were looking for is not yet there, but at least we know we have time to prepare!
