The newly published Employment Rights Bill brings major reforms to employment law, introducing protections aimed at creating a fairer, more flexible workplace. These changes have been described as the biggest in over a decade; therefore, it is essential for businesses to get ready to implement these changes to make sure they stay compliant and plan for the future.
Day-One Employment Rights
A standout change in the Bill is the introduction of day-one employment rights. From the first day of employment, employees will now have protection against unfair dismissal and access to parental and bereavement leave. This move underscores the importance of setting up fair practices from the outset, helping employees feel supported and secure in their roles right from the start.
Regulation of Zero-Hours Contracts
Addressing concerns over job stability, the Bill restricts the use of exploitative zero-hours contracts. Workers with consistent hours over a set period will be entitled to guaranteed hours, reducing the unpredictability associated with zero-hours agreements. This requires employers to review existing contracts and consider offering more stable, predictable terms where possible.
Limits on Fire and Rehire Practices
The Bill also addresses controversial “fire and rehire” practices, making them illegal except in cases of genuine financial necessity. This change is designed to protect employees from abrupt changes to their employment terms while allowing businesses some flexibility in challenging circumstances. Employers will need to rethink how they approach contract changes to ensure they align with the new law.
Flexible Working as the Default
Flexible working arrangements will become the default, allowing employees greater control over their schedules. Employers must provide valid reasons for any refusals to requests for flexible working, adding a layer of accountability. This change encourages businesses to consider implementing hybrid working or flexible schedules to meet the varied needs of their workforce.
Enhanced Protections for Pregnant Women and New Mothers
Pregnant employees and new mothers will benefit from enhanced protections against dismissal. This change strengthens the rights of those balancing family and work responsibilities, requiring employers to review policies to ensure a supportive environment for maternity leave and reintegration.
Employer Responsibility in Preventing Sexual Harassment
The Bill introduces employer liability for third-party sexual harassment, placing a duty on employers to take “all reasonable steps” to prevent it. This requires proactive measures, such as anti-harassment training and establishing clear reporting procedures, to mitigate potential risks and support a safe workplace. Some of these measures were introduced in October 2024.
Establishment of the Fair Work Agency
Finally, a new Fair Work Agency will oversee enforcement of these rights, providing a route for employees to raise grievances while holding businesses accountable. This agency is expected to ensure consistency in workplace rights and offer guidance for fair employment practices.
How Wilkes Can Help
As the Employment Rights Bill comes into effect, Wilkes is here to navigate you through the new requirements. Ensuring your business is compliant and able to adapt effectively. Contact James Leo, Partner, Employment: on 0121 733 8000 or [email protected], or reach any member of our Employment Team at 0121 233 4333 to see how we can help.
