Employment Rights Bill Update
Posted on 2nd April 2025 at 12:43
This month our blog provides a summary of some of the changes being proposed under the Employment Rights Bill, which is currently making its way through parliament.
Trade Union rights – various new rights including a new duty on employers to inform workers of their right to join a trade union and require employers to:
• include information about the right to join a trade union in a written statement
• regularly inform workers of their right to join a trade union
Unfair dismissal - will remove the two-year unfair dismissal qualifying period and replace it with a new statutory probationary period, referred to as the ‘initial period of employment’ which is likely to be nine months.
Sick Pay - remove the waiting period so Statutory Sick Pay (SSP) is paid from day one of sickness absence (rather than day four)
Introduce a new rate for Statutory Sick Pay for low earners, including all those earning below the Lower Earnings Limit (£125 per week £542 per month £6,500 per year).
Fire and Rehire Restrictions - where employees are dismissed for failing to agree to a variation in their terms of employment. Those dismissals will be treated as automatically unfair. There will be a narrow exception if the employer can show evidence of financial difficulties that would mean the business could not carry on without varying the contractual terms.
Collective consultation during redundancy - there will be a new threshold test whereby employers proposing 20 or more redundancies must carry out collective consultation.
Zero-hours and ‘low-hours' contract measures and extension of these measures to agency workers - to give workers a right to a guaranteed hours contract which reflect the hours they regularly work. This will be based on a set reference period which is likely to be 12 weeks
Flexible working - to make flexible working a default day-one right (apart from when it is not reasonably feasible). Reinforcing the April 2024 legislation giving right to request flexible working from day one of employment. An employer must explain in writing the reason for any refusal and why their refusal is considered reasonable.
Maternity and family leave returners - to make it unlawful to dismiss a woman while pregnant, on maternity leave and within six months of returning to work (with some exceptions).
Parental leave - to make parental leave a day-one right (removing the one year's service requirement).
Paternity leave - making paternity leave a day-one right (removing the 26 weeks’ service requirement). Ability to take paternity leave and pay following shared parental leave.
Protection from harassment - a new provision requiring employers to not permit harassment from a third party (such as a client or customer).
Sexual harassment - requiring employers to take all reasonable steps to prevent sexual harassment.
Bereavement - a new day-one right will be introduced allowing employees to take at least one week of bereavement leave.
Bereavement leave after miscarriage - to introduce a new right of two weeks’ statutory bereavement leave for mothers and their partners who experience miscarriage
Fair Work Agency - the establishment of a new enforcement body, the Fair work agency (FWA). The aim is to offer a single place where workers and employees can seek help.
Tribunals - the current time limit for claims is three months. The Employment Rights Bill amendment propose to change this period to six months.
Race Equal Pay – like Equal Pay currently in force
Equality Action Plans – for employers with over 250+ employees
Ethnicity Pay Reporting – for employers with over 250+ employees
Disability Pay Reporting - for employers with over 250+ employees
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