The imminent shifts in workers’ rights, encapsulated in the government’s Employment Rights Bill, are a subject of considerable debate and concern among various stakeholders. Dubbed as “the largest upgrade to rights at work for a generation,” the upcoming changes promise a significant overhaul of employment laws as applicable to England, Scotland, and Wales (with Northern Ireland exempt due to devolved employment law). Despite these bold promises, businesses and labor organizations alike are expressing mixed feelings, primarily as the government has already performed a U-turn on multiple fronts, unsure about how these proposed measures will function in real-world scenarios.
A cornerstone of the Employment Rights Bill involves the right to claim unfair dismissal, which was originally set to apply to workers from their very first day of employment. This proposed alteration—eliminating the two-year qualifying period—was met with resistance from numerous business groups concerned about its implications. Consequently, the government has revised its stance, retracting to a six-month waiting period for such claims. This reversal has been criticized as a violation of Labour’s prior commitments to workers’ rights. However, it is important to note that protections against discrimination from the outset will remain intact, along with the introduction of new rights regarding sick pay and paternity leave expected by April 2026.
The Employment Rights Bill also seeks to redress the issues surrounding zero-hours contracts, commonly referred to as casual contracts, wherein workers are not guaranteed a specific number of hours. The new legislation obliges employers to confer guaranteed-hours contracts based on the regular hours documented over a 12-week period. Workers can choose to retain their zero-hours arrangements if desired, but they will have the legal right to guaranteed hours should they wish for them. Additionally, provisions ensuring reasonable notice for any alterations to shifts and compensations for canceled shifts are expected to enhance job security for those in such contracts.
In an era that increasingly values flexibility, the draft bill also states that flexible working should become the norm for all employees. Employers will be required to approve requests from employees for flexible working arrangements as soon as they commence employment, unless they can present a valid rationale against such requests. This new approach aims to prioritize employees’ needs, allowing arrangements around start and finish times or the potential to work from home. However, the grounds for rejecting such requests remain considerable, including potential financial burdens on the employer and challenges in meeting customer demand.
Another notable change involves sick pay. The proposed bill eliminates the waiting period and lower earnings limit for accessing Statutory Sick Pay, determining that approximately 1.3 million low-paid workers will receive 80% of their weekly wages from the onset of their illness. Currently, employees must be ill for more than three consecutive days and earn above a given threshold to qualify for sick pay. Under the new provisions, employees across the board will be eligible for Statutory Sick Pay from their first day of illness, bringing much-needed relief to many in the workforce.
Moreover, parental and bereavement leave policies are set for revision. The bill intends to allow individuals to take unpaid parental leave immediately upon starting employment, rather than requiring a year-long tenure with their employer before qualifying for such a benefit. The same principle applies to bereavement leave, which mandates time off for employees when a dependent passes away—regardless of their time in employment.
On the horizon, the controversial practice of “fire and rehire” could potentially be curtailed. This practice, which allows employers to terminate employees and rehire them on less favorable terms, will now be prohibited in most situations. However, exceptions may be made for businesses facing insolvency threats.
Yet, not all proposals anticipated in Labour’s “Make Work Pay” initiative are included in the Employment Rights Bill. Notably, the “right to switch off,” which sought to prevent employers from contacting employees after working hours, has been postponed for further deliberation. Furthermore, efforts to establish a “single status of worker” aimed at increasing protections for self-employed individuals largely dependent on a single employer will require further legal fine-tuning before integration into the legislation.
As the changes in workers’ rights continue to unfold, the implications for both employees and employers remain pivotal. The potential for a transformed workplace landscape hinges on the effectiveness of these legislative proposals and their reception across the sectors that would be affected.
