Employment Rights Bill: How will it affect you?

A major shake-up of workers’ rights is on its way, but the reforms proposed are still being worked out and it is still unclear how some will work in practice.

The government says the measures in the Employment Rights Bill mark the “biggest upgrade to rights at work for a generation”.

However, some business groups have expressed concern at the plans, while others have argued that the government has watered down or delayed certain elements to try to keep both employers and employees happy.

Changes could still be made to proposals before most of them take effect in two years’ time, but here is what is being proposed and how it could affect you.

From day one in their job, workers will have the right to claim unfair dismissal against their employer.

That is a big change from the existing two-year qualifying period.

However, staff will be subject to a nine-month probation period, during which employers can dismiss someone more easily and without the full process required.

But the proposals could yet change with the government planning a series of consultations. The new rights are set to come into force in autumn 2026.

Zero-hours contracts are also known as casual contracts. Workers are not guaranteed hours from employers, but they also do not have to work when asked.

Under the new legislation, company bosses will be required to offer a zero-hours worker a guaranteed-hours contract based on the hours they clock up during a 12-week period.

Employees who prefer having a zero-hours contract will be able to remain on those terms if they want to – the change is that they will have the right for guaranteed working hours if they want them.

Workers on zero-hours contracts will also be entitled to “reasonable” notice ahead of any changes being made to their shifts, as well as compensation if a shift is cancelled or ended early.

Flexible working is to become the “default” for all workers, with employers required to say yes to requests from staff from their first day starting in a job unless they can prove it is “unreasonable”.

The government defines flexible working as a way of working “that suits an employee’s needs”, for example, having flexible start and finish times, or working from home.

Employees can already request flexible working from their first day in a job, but an employer can refuse an application if they have a good business reason for doing so.

It is unclear if there will be a big shift from current rules and there appear to be many reasons available to employers to refuse flexible working in the new bill.

The grounds against granting requests include:

• Burden of additional costs
• Detrimental effect on ability to meet customer demand
• Inability to re-organise work among existing staff
• Inability to recruit additional staff
• Detrimental impact on quality

The waiting period and lower earnings limit to receive Statutory Sick Pay will be removed.

Currently, to qualify for sick pay, you must have been ill for more than three days in a row and earn an average of at least £123 per week.

Under the plans, employees will be entitled to Statutory Sick Pay from the first day they are ill and those earning under £123 per week will also be eligible for it.

You can get £116.75 per week Statutory Sick Pay if you’re too ill to work and it is paid by your employer for up to 28 weeks. Some can get more if their company has a sick pay scheme.

Parents are currently only allowed to take unpaid parental leave if they have been with a company for more than a year. The government plans to change this to become a right from “day one” in employment.

The same will apply for bereavement leave.

Anyone legally classed as an employee has the right to time off if a dependant dies.

A dependant could be their:

• Husband
• Wife
• Civil partner or partner
• Child
• Parent
• A person who lives in their household (not tenants, lodgers or employees)
• A person who relies on them, such as an elderly neighbour

Certain measures included in Labour’s plan to “Make Work Pay”, issued in the run-up to the general election, have not featured in the Employment Rights Bill.

For example, the “right to switch off” – stopping employers contacting staff out of hours on phones, emails and texts – has been kicked down the road.

The commitment to create a “single status of worker” is also not in the bill. This aimed to increase protection for people who are classed as self-employed, but largely work for one employer, but have fewer entitlements than other employees.

It is understood legal complexities mean this will have to be revisited at a later date.