The UK’s Employment Rights Bill has been making waves in the business and legal communities, with significant amendments introduced in recent months. As the bill progresses through Parliament, it promises to reshape employment protections, worker rights, and employer responsibilities. With new provisions covering zero-hours contracts, statutory sick pay, and trade union protections, businesses and employees alike must stay informed about the upcoming changes.
Key Amendments to the Employment Rights Bill
1. Strengthened Protections for Zero-Hours and Agency Workers
One of the most notable updates to the bill is the extension of protections for workers on zero-hours contracts. Employers will now be required to offer guaranteed hours to agency workers based on their typical working patterns over a reference period. Additionally, businesses must provide reasonable notice for shift changes and compensate workers for last-minute cancellations.
2. Changes to Statutory Sick Pay (SSP)
The bill introduces reforms to statutory sick pay, including the removal of the waiting days rule, meaning SSP will be payable from the first day of absence rather than after three days. However, the proposal to remove the lower earnings limit has been scrapped, ensuring that lower earners do not receive SSP at a rate higher than their normal wages.
3. Establishment of the Fair Work Agency
A new government body, the Fair Work Agency, is set to be established to enforce employment rights. This agency will have the authority to issue underpayment notices, impose penalties for unpaid wages, and even bring tribunal claims on behalf of workers who may not have the resources to do so themselves.
4. Collective Redundancy Consultation Reforms
The bill initially proposed requiring collective consultation for redundancies affecting 20 or more employees across an entire business, rather than just at a single establishment. However, amendments now suggest that the threshold will be determined by further regulations, potentially based on a percentage of the total workforce.
5. Expanded Bereavement Leave Entitlements
Bereavement leave provisions have been expanded, ensuring that employees have greater access to paid leave following the loss of a loved one. This change aligns with broader efforts to improve workplace well-being and support employees during difficult times.
What’s Next for the Employment Rights Bill?
The bill has passed its second reading in the House of Lords and is expected to receive royal assent by the end of 2025. Many of the provisions will likely take effect in 2026, following further consultations and regulatory refinements.
For businesses, now is the time to review employment contracts, policies, and workforce management strategies to ensure compliance with the upcoming changes. Workers should also familiarize themselves with their new rights to ensure they can advocate for fair treatment in the workplace.
Conclusion
The Employment Rights Bill represents a significant shift in UK employment law, aiming to enhance worker protections while balancing employer responsibilities. As the bill moves closer to becoming law, staying informed and prepared will be crucial for both businesses and employees navigating the evolving landscape of workplace rights.
If you would like to discuss how this will affect your business and start thinking about changes to your contracts or any aspect of the employment of staff contact us at TM LAW.
