We have now received the “Employment Rights Bill” which introduces several critical changes that employers should be aware of. These will all be subject to extensive consultation throughout 2025 with the changes anticipated to commence in 2026. Here’s a breakdown of some of the changes and practical tips for employers to navigate these changes effectively when the time comes.
Zero Hours Contracts and Guaranteed Hours
The bill introduces a right for qualifying workers to be offered guaranteed hours and end one sided flexibility. It will ensure that workers who have consistently worked a certain number of hours during a reference period are offered guaranteed hours. It will also provide compensation for shifts that are cancelled or changed on less than reasonable notice. What is reasonable notice needs to be clarified. Current law would suggest 7 days.
To be ready for this change, employers should monitor workers’ hours and establish clear criteria for offering guaranteed hours. You could also consider creating a policy for shift changes to ensure compliance with the notice requirements.
This bill confirms the right for employees to request flexible working from day 1. It will make it harder for employers to say no.
Employers should be prepared to handle a higher volume of flexible working requests and have clear policies in place for evaluating and responding to them. There also needs to be greater transparency in decision-making and clear communication about the reasons for refusal.
The bill eliminates the waiting period for statutory sick pay, meaning that employees can now claim SSP from their first day of absence instead of after a three-day waiting period. This change is aimed at providing quicker financial support during illness.
Employers should adjust their payroll systems to reflect the removal of the waiting period and communicate this change to employees to ensure clarity about their entitlements. They should also ensure any policies or Staff Handbooks are updated with the change.
The bill removes the qualifying period for parental and paternity leave, making these leaves available from day one. It also extends the right to bereavement leave based on the employee’s relationship with the deceased.
Employers should update their policies and/or Staff Handbook to reflect this change and inform new hires about their rights. By encouraging early communication about planned family leave can support the workforce and help manage expectations around leave usage.
From October 2024 there is an increased duty on employers to “take all reasonable steps” to prevent harassment in the workplace. This also includes third party harassment and whilst this cannot be brought as a standalone claim, third party harassment can have legal claims in conjunction with other claims. The bill will in all likelihood make an employer responsible for third party harassment of its employees.
From October 2024 you should put in place a sexual harassment policy if you do not already have one. You should update your existing policies and Handbook. You should also ensure that all members of staff undertake regular training and that there are accessible reporting channels.
One of the significant changes in the Employment Rights Bill is the removal of the qualifying period for unfair dismissal claims. Previously, employees needed to have a minimum of two years of continuous service to be eligible to claim unfair dismissal, now they will have the right from day one. This change is intended to enhance job security for new employees and hold employers to a higher standard when making termination decisions. There will be a statutory probationary period, currently suggested as 9 months.
Employers will need to be more diligent in their processes for dismissing employees, regardless of length of service. This includes maintaining thorough documentation of performance issues, following fair disciplinary procedures, and providing clear reasons for termination decisions. Employers should also consider the use of probationary periods in their contracts and how that works in practice. Perhaps now is the time to review your employment contracts.
The Employment Rights Bill introduces a range of measures aimed at enhancing workers’ rights, from zero hours contracts to parental leave and protections against harassment. Whilst we do not have any dates yet of when these will come into force, we can expect these to be consulted upon in 2025 and an estimate of them coming into force in 2026. This will give employers plenty of time to adjust their practices and review their existing policies.
Employers must adapt their processes to align with these new legal requirements, ensuring that they not only comply with the law but also foster a fair and supportive work environment. By proactively updating internal processes and engaging with staff, employers can mitigate risks, create a positive workplace culture, and stay compliant as the new regulations come into effect.
If you need any support with understanding these changes or adapting your policies and contracts where applicable, then contact our Employment Team today.
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This article aims to supply general information, but it is not intended to constitute advice. Every effort is made to ensure that the law referred to is correct at the date of publication and to avoid any statement which may mislead. However, no duty of care is assumed to any person and no liability is accepted for any omission or inaccuracy. Always seek advice specific to your own circumstances. Fraser Dawbarns LLP is always happy to provide such advice.
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