The Employment Rights Bill

Reform	What’s proposed?	What does this mean for businesses?	Expected timeline
Day 1 Unfair dismissal protection	Employees will be able to claim unfair dismissal from day one, although employers can follow a modified process during a probation period to dismiss for specific reasons including conduct and performance. The length of probation is recommended as 9 months, but this is subject to consultation.	This may increase the risk of employment tribunal claims. Businesses need to ensure they operate robust performance management processes during probation periods and should consider their hiring and selection processes to reduce the likelihood of dismissal. By engaging workers on a temp to perm basis through ManpowerGroup, businesses could enjoy a longer period for evaluation, with reduced risk. Businesses could also consider using an RPO model to enhance hiring decisions and reduce the need for dismissals.	This element will not come in before Autumn 2026 and there will be a consultation on the implementation, including the length of the statutory probation period, how the dismissal process will work and the compensatory award.
Zero-Hours Contracts	Workers on zero-hour contracts or with a low number of guaranteed hours will have the right to a contract which reflects the hours they regularly worked over a reference period (expected to be 12 weeks), reasonable notice of shifts/changes to shifts with a right to payment for any changes or cancellations. There will also be a consultation to explore commercial considerations and how this could apply to Agency Workers.	Whilst providing greater certainty for workers, these changes will create restrictions on employers’ flexibility and may increase administration. Businesses may need to review their workforce planning processes. Our expertise in contingent and permanent workforce solutions can support companies in balancing flexibility with the new regulations.	Consultation on how the obligations towards Agency Workers are apportioned was launched on 21^st October and ends on 2^nd December 2024.
Fire and Rehire	Where employees are dismissed for failing to agree to a change in their contract of employment, dismissals will automatically be treated as unfair unless the employer can show evidence of financial difficulties and demonstrate that the change in contractual terms was unavoidable.	In the vast majority of cases, businesses will need to find alternatives to terminating employment and offering alternative terms. This could include restructuring or role transitions. Businesses should ensure their contracts provide sufficient flexibility to enable them to adapt to changing workforce needs or look to alternative workforce models.	Consultation on whether interim relief should apply in cases of fire and rehire was launched on 21^st October and ends on 2^nd December 2024.
Family friendly Leave and protections	Employees will have day one rights to paternity leave and parental leave and will also be able to take paternity leave after shared parental leave. There is also a new right to bereavement leave for relationships to be determined by further regulations. Protection from dismissal will be extended to pregnant employees, those on maternity leave and a protected period will be introduced for those returning from parental leave.	Businesses will need to amend their paternity, parental and bereavement/compassionate leave policies. Most dismissals of those covered by these new protections will be considered to be unfair. Businesses may want to consider the use of temporary labour to cover employee absences.	Consultation and additional regulations expected on eligibility and duration of bereavement leave.
Statutory Sick Pay (SSP)	Employees will be entitled to Statutory Sick Pay without the current three-day waiting day period, and the lower earnings limit (LEL), before employees are eligible will be removed. The Government is consulting on the rate SSP will be set at for those below the LEL.	Businesses will need to update their payroll and benefits system and may see an increase in absence due to employees being eligible for SSP from the first day of absence. Absence management processes should also be reviewed. Businesses may wish to consider covering increased absences with temporary labour.	Consultation on the percentage rate for those below the LEL was launched on 21^st November and ends on 2^nd December 2024.
Flexible Working	This Bill makes flexible working the default unless an employer can justify otherwise. Requests may be refused but organisations must show that it is reasonable to refuse on one of the statutory grounds. Further regulations around consulting such requests are expected.	It is likely that businesses will receive more requests and should review their flexible working processes to ensure they allow for adequate consideration. More detailed workforce planning may be required to ensure that more flexibility can be offered without compromising business productivity.	A consultation is expected to obtain the views of business, trade unions and third sector bodies in the approach to flexible working.
Protection from Harassment	This enhances the duty on employers to prevent third party harassment and amends the provision requiring employers to take 'reasonable steps' to prevent sexual harassment to 'all reasonable steps'. There will be further regulations to specify what steps are regarded as 'reasonable'. Reporting sexual harassment will also amount to a protected disclosure for the purposes of whistleblower protection.	It will be prudent for businesses to assess the potential for third party harassment and consider what additional steps they can take to protect their employees. Processes should also be reviewed to ensure that disclosures are dealt with promptly.	Additional regulations to be released in due course.
Collective redundancy	The Bill removes the concept of 'establishment' from the current collective redundancy legislation. This means that collective consultation obligations will apply where 20 or more dismissals are proposed across an entire business, rather than the current site-specific approach. The Government is also consulting on extending the protective award for failure to consult.	Businesses will need to consider carefully how redundancies that impact multiple sites are conducted and their consultation arrangements, when the reasons for the redundancies may be varied and/or carried out over a period of time.	Consultation around the maximum protective award for failing to consult was launched on 21^st October and ends on 2^nd December 2024.
Fair Work Agency	The Bill creates a single enforcement body with considerable powers to inspect workplaces, bring civil proceedings, tackle worker exploitation and to enforce rights such as holiday pay.	There will be additional enforcement in targeted areas and businesses should consider an audit of their compliance with employment legislation relating to holiday pay, statutory payments and National Minimum Wage.	Further details including timescales to be released in due course.
Reforms of Trade Union Recognition and Legislation	Repeals multiple previous regulations including thresholds for strike ballot, sector-based minimum service level rules for strikes and preventing strikers being replaced by agency workers. There is a new employer requirement to inform workers of their legal right to join a trade union. Trade Unions also have new rights to access workplaces to meet, represent, recruit, and organise members in workplaces. Union recognition thresholds will be reduced and the statutory process, including ballots will be simplified. Finally, Union representatives will receive new protections against detrimental treatment experienced in the course of performing their duties.	Businesses should review how they will fulfil their ‘inform’ obligations and unionised employers should review their industrial relations policies and guidelines. An increase in access and recognition requests should be expected by those employers not currently unionised.	Consultation on the principles for a modern industrial relations framework, the extension of the Code of Practice to cover the whole recognition process, political funding, Industrial Action ballots, expiry dates and notices, access rights and penalties was launched on 21^st October and ends on 2^nd December 2024.
Pay gap and Equality	Creates an obligation for large employees to develop and publish a plan to address gender pay gap.	Large businesses should analyse their gender pay gap and prepare to formulate a plan to address this.	No timeline or next steps confirmed.