This is a comprehensive Bill which, if implemented, will represent the biggest upgrade in employment rights for generations. It is important to keep in mind the Bill has to pass through several sittings in the Houses of Commons and Lords and although there is a Labour seat majority in the Commons this doesn’t guarantee all will support it in its current form and in any event, there remains a Conservative majority in the Lords which means the Bill will be scrutinised thoroughly and challenged robustly. It is almost certain that it will be amended before it is passed and none of the changes that ultimately make it through will come into effect until 2026 at the earliest so there is time to plan and prepare.
There are 28 proposed changes to Employment Law included within the Bill, and some of the more headline elements include:
- Removing the requirement to accrue 2 years service before an employee is able to register a claim for Unfair Dismissal.
- Reforming the Statutory Sick Pay (SSP) rules and in particular removing the 3 waiting days, which would mean employees would receive SSP from the first day of absence.
- Simplifying the Union Recognition process as the Government believes that employees should have a meaningful right to organise through trade unions.
- Banning what the Government refers to as exploitative zero hours contracts and unpaid internships.
- Changes to Paternity Leave arrangements and further changes to rights around flexible working.
The Government says…
“The bill was introduced into the House of Commons on 10 October 2024. As is typical for employment legislation, further detail on many policies in the bill will be provided through regulations after Royal Assent.
We expect to begin consulting on the majority of these reforms in 2025, seeking significant input from all stakeholders. For some areas, we will be consulting before the end of the year, including on applying the zero hours measures to agency workers; modernising trade union legislation; and Statutory Sick Pay.
We will ensure businesses have time to prepare for the implementation of these reforms and expect that most reforms in the bill will take effect no earlier than 2026. Where more time is needed for businesses to prepare for change, this will be taken into consideration. We will also publish guidance where this is appropriate.”
At OBSG, through our trusted partner Transitional HR, we’ll be keeping a watching brief on the development of the Employment Rights Bill on behalf of our clients, though if you are an employer and you wish to have a conversation on this subject or any other employment related matter then feel free to get in touch.
