Employment Rights Bill
A key element of Labour’s election manifesto was a pledge to transform workers’ rights through the introduction of the Employment Rights Bill. Last year, Labour described this Bill as “the biggest upgrade to workers’ rights in a generation” and presented a set of significant employment reforms designed to provide greater protections and security for workers across the UK.
The proposed changes represent a major shift in UK employment law, aiming to create a fairer and more balanced workplace. These reforms include a ban on zero-hour contracts, the introduction of Day One rights for unfair dismissal, Day One rights for flexible working requests, and the outlawing of exploitative fire-and-rehire practices. According to the Government, these measures are essential for fostering a more stable, productive, and equitable labour market.
Deputy Prime Minister Angela Rayner emphasised the urgency of these reforms, stating, “For too long, millions of workers have been forced to endure insecure, low-paid, and irregular work, while our economy is blighted by low growth and low productivity.” Business Secretary Jonathan Reynolds reinforced this point, adding, “Many businesses already implement worker-friendly practices and recognise the positive impact they have on retention, productivity, and job satisfaction. We want to go further—unlocking the UK’s full potential by attracting the best talent and giving businesses the confidence to hire, invest, and grow.”
At the time, I wrote about this Bill and future implications for business, but also noted the extensive period of consultation we would see across 2025 with most changes not likely to take effect until at least 2026. With the first 200 pages of amendments now published following early consultations with business groups and trade unions, I want to look at a few of the key points from the amendments and consultation responses.
Guaranteed Hours for Agency Workers
Agency workers will be covered under the ban on zero-hour contracts. Under the Bill, employers must offer contracts that reflect the hours agency workers regularly work—ensuring guaranteed weekly hours for the 900,000 agency workers currently in the UK.
In addition, agency workers will have the right to reasonable notice of shifts and any changes to their schedules. If shifts are altered at short notice, they will be entitled to compensation. This responsibility will be shared by both the employment agency and the end hirer, as either party may be responsible for providing notice.
Agency staff, like other workers, should benefit from these protections by ensuring greater stability in their working arrangements.
Statutory Sick Pay: A Day One Right
Currently, Statutory Sick Pay (SSP) is not paid for the first three days of sickness—known as ‘waiting days’—with payments starting only from the fourth day. The Bill will remove this waiting period, making SSP a Day One right.
At present, employees must earn above a set “Lower Earnings Limit” to qualify for SSP. This threshold will also be scrapped, ensuring all employees are entitled to either 80% of their average earnings or a weekly flat rate (whichever is lowest).
Collective Redundancies
Under current law, employers must hold a collective consultation if they propose 20 or more redundancies at a ‘single establishment’ and intend to make these redundancies within a 90-day period. To better ensure businesses follow these obligations, the Government is increasing the maximum protective award from 90 to 180 days, meaning employees could receive up to 180 days’ pay if their employer fails to properly consult with them during a collective redundancy process. Additionally, the criteria for triggering collective consultation will be amended—redundancy numbers will now be calculated across the entire business, rather than just a single establishment.
Bereavement Leave
Under the proposed reforms, mothers and their partners will be entitled to two weeks of bereavement leave following a pregnancy loss occurring before 24 weeks’ gestation.
Currently, parents have the right to bereavement leave if they experience the loss of a child or a stillbirth after 24 weeks. The new measures will extend this right to those who suffer a loss earlier in pregnancy.