Since Labour’s election victory, the HR world has been waiting with bated breath to find out whether they would make good on their manifesto promise of a ‘New Deal for Working people to make work pay’, and what this would look like. 

Well, late last week we got our first glimpse of the future of employment under this government. Keeping to their word on bringing legislation to parliament within 100 days of entering power, the Government introduced a bill which seeks to introduce no less than 28 law changes. 

The introduction of Employments Rights Bill is the government’s first step towards implementing the sweeping changes that were included in the ‘Plan to Make Work Pay’. This development brings with it confirmation of the shape of future employment law in Great Britain.

What changes are included in the Employment Rights Bill? 

The Employment Rights Bill includes 28 individual employment reforms, covering nearly all areas of employment law. 

It’s clear that the Bill is designed to tip the scales towards employees regarding flexibility. Employers’ current flexibility will be reduced in a number of ways, one of which is the introduction of the right for zero-hours staff to move to a guaranteed hours contract if they work regular hours. 

Not only will this mean that employers will need to guarantee a set number of hours per month, and therefore pay, but also means that employees will be entitled to a number of other benefits including unfair dismissal, parental leave and redundancy pay. 

On top of this, employees’ rights to flexible working will extend again, even further than they did during the last update in April this year. Under the Employment Rights Bill, where employers refuse flexible working requests, they will now also need to show that it was reasonable for them to apply the ground for refusal. 

Parental leave

It’s good news for working parents too, as parental leave will also become a day-one right. This is a massive change, as under current legislation employees are only eligible for parental leave after one year. 

Another significant update detailed in the bill is the planned introduction of a day-one right to unfair dismissal protection. Currently, employees must complete two years’ continuous service to be eligible to claim unfair dismissal, so this is a significant change. However, the question on everyone’s lips is whether a probationary period will apply and, if so, how the two will fit together. 

Unfair dismissal

It seems that this is still undecided, the government have committed to consult on a statutory probation period, although it is looking likely to be around nine months long. Furthermore, early indications are that the full unfair dismissal protection will not apply during this period, though we are still awaiting exact details.

The new bill also looks to ban “fire and rehire” dismissal procedures. Often used to introduce changes to employees’ contracts, where negotiation with representatives has failed, the practice is currently not illegal however employers must follow the new statutory code of practice for it. 

Under the new legislation, the practice will be prohibited, with the exception of extreme circumstances. 

Other measures being introduced under the Employment Rights Bill include updated statutory sick pay legislation, which will be paid from the first day of absence, instead of the fourth, as well as the introduction of statutory bereavement leave. 

When will the changes come into effect? 

The government have dubbed the bill as ‘the biggest upgrade to workers’ rights in a generation’ and rightly so. Therefore, employers will need to make extensive preparations, reviewing contracts, policies and procedures, to ensure they’re in compliance with updated legislation.

Luckily, employers will have the time to do so as these changes aren’t coming into effect overnight. The bill will now go on to be debated in Parliament and make its way through the legislative process. 

The bill itself is not likely to become law until mid-2025, with many of the rights not able to come into effect until further regulations are made by the Secretary of State, which is not expected to happen before 2026. 

However, employers should keep a close eye on its progress, so that they are ahead of the curve and aware of actions they will need to take in the not-too-distant future to remain legally compliant. 

First phase

It is also important to remember that the Employment Rights Bill is only the first phase of Labour’s ‘Plan to Make Work Pay’. 

The Government is also already assessing the next phase of changes to employment law, with its “Next Steps’ strategy highlighting areas it will look at in the future. These include the right to switch off and a move towards a single status of worker. 

Employers will certainly have their work cut out for the over the next few years to keep up with the proposed changes, but staying informed will be key to successful implementation.