What does the Employment Rights Bill mean for me?

When the new Labour Government came into power on July 5th, they announced they would introduce an Employment Bill within the first 100 days, prioritising the “New Deal for Working People” plan.  The bill was confirmed on the 17th of July following its inclusion in the King’s Speech during the State Opening of Parliament. But what does this mean if you’re starting a new job, or are a long-standing employee? Here is a snapshot.

Day-one employment rights

For those looking to start new roles, employment rights look to be strengthened.  The King’s Speech confirmed the government’s intention to make parental leave, sick pay, and protection from unfair dismissal available from day one of employment.

Unfair dismissal: a day-one right

One main part of the Employment Rights Bill is the expansion of current employment protections. This is removing the minimum service period for safeguarding against unfair dismissal. This is subject to rules relating to qualifying probationary periods. This protects employees from being dismissed without reason in the first weeks of employment. Yet, employers are still protected, as they can hire a new employee under a probationary period. So, if you don’t perform as well as they had hoped, they can terminate your employment. The new bill means an employer needs a good reason for making a dismissal.

Firing and rehiring protections

One exploitative practice the government wants to end is a growing trend of some employers who fire and rehire their employees but under worse conditions. The Department for Business and Trade, which drew up the code, said employers should explore alternatives to dismissal. This could include discussions with employees or trade unions to reach an agreed outcome. The new code grants courts and employment tribunals the power to increase employees' compensation by 25% if the employer does not comply with best practices around firing and rehiring.

More family-friendly rights

Family-friendly rights have changed. This includes the introduction of unpaid carer's leave entitlement. Employees are entitled to unpaid leave to care for a dependant who has a physical or mental illness or injury which means they're expected to need care for more than three months. This new law gives unpaid carers, balancing unpaid care with paid employment, the legal right to five days of unpaid carer’s leave. The Carer’s Leave Act became law on the 6th of April 2024. There is also extended protection from redundancy under the Pregnancy and Family Leave Act and the Paternity Bereavement Bill.

Parental leave

The King's Speech announced that parental leave, which currently needs one year's service, would be a day-one right under the new Employment Rights Bill. It is unclear whether other types of family leave will be reformed.

Flexible working

Flexible working became commonplace following the COVID-19 pandemic. While some employers offer workers flexibility and hybrid options, others are less flexible and have a ‘return to the office’ policy for all.

The new government wants to make flexible working a right from day one of any employment, not just a benefit for senior professionals. This gives you the right to request a flexible working pattern or location based on your needs from the first day of your employment. Your employer can decline but they must give you a firm reason.

Increased maternity rights

Protections will be strengthened by making it unlawful to dismiss new mothers for six months after returning to work, except in specific circumstances.

Pay reporting

Organisations with over 250 employees will need to report on the pay of their ethnic minority and disabled staff.

Single enforcement body

The government will establish a new Single Enforcement Body, also known as a Fair Work Agency, to strengthen enforcement of workplace rights.

Trade unions

This includes introducing a right for workers and union members to access a union within workplaces.

What if I’m a contractor?

If you’re a contractor, any impending changes to IR35 are still pending.  Simplifying employment status is still on the government’s agenda. For self-employed workers, this is one to watch. It is likely to be a lengthy consultation before anything concrete happens.

Changes take time

The King’s speech set out the government’s main aims in the opening days of their tenure. It is important to realise that many policies are not in place, or guaranteed to be in any final Employment Law Bill. Details of these changes will need to be reviewed by business experts and members of parliament. They are then voted on before coming into law.

So, although, for many workers, there are promises of more protections, in reality, changes will take place over time. So, in many cases, it is business as usual.

If you’re looking for a new employer, there are plenty of jobs on the Meraki Talent website, from tech and law to finance and accounting.