What the Employment Rights Bill means for your job

Workers are set to get sick pay, parental leave and flexible working rights from the day they start a job under major employee reforms.

The Employment Rights Bill, unveiled by the government in Parliament today, puts forward 28 workplace reforms, including “day one rights” for paternity, parental and bereavement leave as well as sick pay.

It will ban zero-hour contracts and remove the existing two-year qualifying period for protections from unfair dismissal.

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The law will also give workers extra rights to request flexible working. However, one part missing from the Bill is a “right to switch-off” where staff can’t be contacted out of hours. This was rumoured to be a key element of the legislation but is being consulted on instead.

Business Secretary Jonathan Reynolds said: “The best employers know that employees are more productive when they are happy at work. That is why it’s vital to give employers the flexibility they need to grow whilst ending unscrupulous and unfair practices.  

“This upgrade to our laws will ensure they are fit for modern life, raise living standards and provide opportunity and security for businesses, workers and communities across the country.”

Here is what the Employment Rights Bill could mean for your job.

Day one rights

Under current employment laws, staff are protected against unfair dismissal after two years and may only qualify for certain benefits after a few months or even years.

The legislation will remove the existing two-year qualifying period for protections from unfair dismissal and the government will also consult on a new statutory probation period for a company's new hires.

Rather than waiting to pass a probation period, staff will have rights from day one for paternity, parental and bereavement leave.

Statutory sick pay will also be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in, the government said.

Pregnant women and new mothers returning to work will also be protected from dismissal whilst pregnant, on maternity leave and within six months of returning to work.

A right to flexible working

Working from home or more flexibly has become popular since the pandemic but there is currently no legal requirement for employers to support this.

The Employment Rights Bill will make flexible working the default for all, unless the employer can prove it’s unreasonable.   

“From an employee perspective flexible working typically improves motivation, especially for colleagues motivated by autonomy,” says Carole Gaskell, a leadership expert at Full Potential Group.

“This is something we see the multi-generational workforces struggling with. The younger generation are more vocal and decisive about ensuring they get their need for flexibility met."

A right to switch off

A regular complaint among staff is being contacted out of hours or on weekends by their bosses.

There were reports that this legislation would ban the practice but instead the government has launched a consultation on a “right to switch off,” which it said would “prevent employees from being contacted out of hours, except in exceptional circumstances, to allow them the rest and get the recuperation they need to give 100% during their shift.”

Elizabeth Watt, employment solicitor at WSP Solicitors, says: “It is not surprising ‘right to switch off’ is subject to further consultation – like flexible working, it’s not a one size fits all policy. Companies will need to take a case-by-case approach when creating ‘right to switch off’ guidelines and explore how flexible working could work.” 

What will the Employment Rights Bill mean for businesses?

The changes have been described by deputy prime minister Angela Rayner as the "biggest upgrade to workers' rights in a generation".

Watt says businesses should be reassured that increasing statutory sick pay, and maternity and paternity pay will impose no additional costs as it is paid by the government.

But there are warnings that the new requirements may make employers more wary about taking on staff.

“Whilst the changes are positive for employees there is a risk that the changes will not have the desired effect of boosting levels of employment and living standards,” says Vicky Schollar, head of employment at law firm Gardner Leader.

“Although larger employers may be able to absorb the additional costs associated with the changes, smaller employers are likely to struggle. This along with the introduction of day one rights for unfair dismissal and strict rules on probationary periods may lead to a downturn in recruitment and, in turn, hamper business growth.

“There is also a risk that employers will see an increase in claims for unfair dismissal, leading to more time and costs in dealing with them.”

The Bill still needs to make it through Parliament and so it could be months before any changes are introduced.