On 10th of October 2024, the Labour government passed the highly-anticipated 'Employment Rights Bill'. The Bill aims to tackle poor working conditions and promote economic growth - benefitting businesses and workers alike.
The new Employment Rights Bill is applicable across Great Britain. (That’s England, Scotland, and Wales – not Northern Ireland). Employers must ensure their business stays on the right side of the Bill and all its legislative requirements.
Peninsula offers expert advice on employment law compliance. We also offer 24-hour HR advice – preparing your business for any new workplace changes. Want to find out more? Contact us on 0800 028 2420 and book a free consultation with our expert HR consultants today.
Now, let’s look at what the Employment Rights Bill includes, and how these legal changes will impact your business for the better.
What does the new Employment Rights Bill cover?
There are numerous legislative changes that the Employment Rights Bill 2024 covers. Let's dive deeper into the main areas:
Ban on exploitative zero-hour contracts
Employers will no longer be able to use zero-hour contracts that exploit or mistreat workers. They must be given contractual terms that reflect their regular work patterns. Employers are also obliged to give reasonable notice and compensation for any shifts that are cancelled, changed, or curtailed.
Provide guaranteed hours contracts (GHC)
The Bill states employers will be required to offer guaranteed hours contracts (GHCs) to zero-hour contract workers (or ‘low-workers’) at the end of every reference period. From March 2025, agency workers are now included under this legal proposal.
Record annual leave entitlements
Employers will be obliged to keep records that show legal compliance of annual leave entitlements for their staff. This is in relation to terms already outlined under the Working Time Regulations 1998.
End ‘fire and rehire’ schemes
The Bill puts an end to any form of ‘fire and rehire’ or ‘fire and replace’ schemes. Employers must prove their variations relate to eliminating, preventing, or reducing financial difficulties. From March 2025, the maximum compensation award for failing to consult staff on collective redundancies (or ‘fire and rehire’) is now 180 days of pay per employee.
Introduce basic workers’ rights from day one
All workers will be eligible for basic statutory rights from the first day of employment – regardless of their status, position, or salary. This includes a number of day-one rights; from parental leave to protection from unfair dismissal.
Extend probation periods
The Bill sets to extend probation periods from previous regular limits. Employers must check proper onboarding assessments are completed – helping to assure candidates suitability for their roles. New hires will also have access to this and other day-one rights.
Provide sick pay rights for workers
Employers will need to provide Statutory Sick Pay (SSP) entitlements to all workers as a day-one right. The Bill states all workers will be eligible for SSP from their first sick day, instead of waiting after four consecutive absences. This will be paid at a flat-SSP rate or at 80% of their earnings – whichever one is lower.
Better flexible working arrangements
All workers will have a day-one right to request flexible working arrangements. Employers are legally obliged to respond to flexible working requests within two months of receiving them. Requests can only be rejected if the reasons categorise under one or more of the eight statutory requirements.
Legal protection for pregnant women
New mothers will have a legal protection from dismissal for at least six months of them returning to work. The Bill also aims to provide better support for employees experiencing the menopause at work – whatever stage they might be at.
Establish new Fair Work Agency
The government aims to establish a new Single Enforcement Body called the ‘Fair Work Agency’. Their strategy focuses on strengthening the enforcement of statutory employment rights across all business industries. As of March 2025, the government will introduce the FWA who'll have powers to raise employment tribunals claims on behalf of individuals, provide legal assistance, and enforce unpaid statutory payments to workers.
Better pay in adult social care
The Bill aims to improve salary rates in the adult social care sector. After appropriate reviews, the government will assess how these changes perform and apply them to relevant care areas. From March 2025, Welsh and Scottish Ministers will establish a Social Care Negotiating Body specifically for their region.
Reinstate School Support Staff Negotiating Body
The Bill aims to reinstate the ‘School Support Staff Negotiating Body’. The scheme is set to introduce national terms and conditions within the education sector – helping to build better career progression pathways, as well as provide fairer salaries to support staff.
Offer employment tribunal assistance
The Secretary of State sets out to provide employment tribunal proceedings on behalf of workers – in the format of legal assistance or representation. They’ll also have the power to issue and enforce notices of underpayment in cases where employees are facing such predicaments against their workplace.
Update trade union laws
The Bill outlines updates to trade union legislation – aiming to align with economic needs. Only qualifying unions will have the right to access (those with independent certificates). Access won’t apply to businesses that function from homes. From March 2025, an increase in trade union rights for recognition and strike action will pass.
Promote the right to disconnect
As of March 2025, there isn’t much information on whether the Government’s initial proposal for the right to switch off from work will make it into the final draft of the Bill. As of March 2025, the Right to Disconnect may not be added to the Bill and instead be reintroduced as a statutory Code of Conduct.
Are there other laws being passed in connection to the Employment Rights Bill?
Yes, within Labour's manifesto, there are other laws and legislative changes set to pass in connection to the Employment Rights Bill. The government promised to draft them within their first 100 days in charge. However, we can't say whether they will pass before the end of the year.
Despite that, let’s take a look at potential new laws and legislative amendments:
The Equality (Race and Disability) Bill
The Equality (Race and Disability) Bill aims to tackle inequality by providing full rights to equal pay for ethnic minorities and disabled people. The Bill also hopes to introduce mandatory ethnicity and disability pay gap reporting. From February 2025, for references to requirements (such as reporting and action plans), gender equality includes the gender pay gap and supporting women with the menopause.
The Worker Protection (Amendment of Equality) Act
The Worker Protection (Amendment of Equality) Act passed on the 26th of October 2024. Employers have a legal duty to prevent sexual harassment of its workers. The government is working on strengthening the process of prevention, as well as highlighting reasonable steps and procedures.
The Employment (Allocation of Tips) Act
The Employment (Allocation of Tips) Act passed on the 1st of October 2024. Under this law, employers must distribute qualifying tips between workers fairly. This act also forces businesses to share tips without making unlawful deductions to wages or other forms of income.
The Paternity Leave (Bereavement) Act
The Parental Leave (Bereavement) Act passed on 24th of May 2024 . It provides leave rights to fathers or non-birthing partners when the mother of their child dies. MPs propose to provide entitlement rights to women and their partners who suffered from a miscarriage before the 24th week of pregnancy. As of March 2025, the Government confirmed the amendment tabled by MP Sarah Owen will be progressed into the draft Bill.
Get expert advice on the new Employment Rights Bill with Peninsula
Employers have all kinds of legal responsibilities relating to their staff and workplace. One wrong move and you could end up causing serious legal complications for yourself and the overall business.
Peninsula is here to provide expert advice on the new Employment Rights Bill. We also offer 24-hour HR advice – keeping your business compliant with new laws and minimising any impacts on your growth and success.
Want to find out more? Contact us on 0800 028 2420 and book a free consultation with our expert HR consultants today.
