The Employment Rights Bill introduces several major reforms, but much of the detail is deferred to future legislation, and there’s no confirmed date for implementation. While some reports suggest it could come into effect by October 2026, we remain uncertain.

Here are the key provisions:

1. Ending ‘Fire and Rehire’: Dismissing an employee for refusing to accept contract changes will be automatically unfair, except in dire financial circumstances. This marks a significant victory for trade unions, although businesses in extreme financial hardship might still be able to defend such dismissals.
2. Reforming zero hours contracts: Employers will be required to offer a ‘guaranteed hours contract’ based on previous working patterns, reducing the use of exploitative zero-hours arrangements. Further details, such as definitions and compensation, are yet to be clarified.
3. Unfair dismissal from day one: The Bill removes the two-year qualifying period for unfair dismissal claims, allowing employees to bring a claim from their first day of employment. A consultation will explore the introduction of a statutory probationary period, potentially set at nine months. This will likely involve new rules on dismissals during probation, but specifics are yet to be confirmed.
4. Flexible working: The promised changes to make flexible working the default for all employees have been watered down. Employers will still be able to refuse requests on existing grounds, provided they give clear reasons.
5. Sexual harassment protections: Employers will face a higher duty to take all reasonable steps to prevent sexual harassment by third parties, and failure to do so could lead to a 25% increase in compensation awards. More clarity will be needed around what “all reasonable steps” entail.
6. Third party harassment liability: Employers will be fully liable for harassment of staff by third parties.
7. Gender pay gap and Menopause support: Employers with over 250 employees will need action plans for gender pay reporting and menopause support. Further details will follow.
8. Collective redundancy consultation: The Bill closes a loophole, meaning that redundancies across an entire business will now trigger collective consultation obligations if 20 or more roles are affected.
9. Paternity, Parental, and Bereavement Leave: Paternity leave will become a day-one right, while bereavement leave is extended to cover more relationships. However, many details are still pending, particularly around how these new rights will operate.
10. Pregnancy and new mums: There will be enhanced protections for pregnant employees and new mothers, potentially extending for six months after returning to work, though this remains to be confirmed.
11. Statutory Sick Pay (SSP): SSP will be paid from the first day of sickness, with the lower earnings threshold removed. Exact pay rates will be set by the Secretary of State in the future.

Several key promises from the government’s manifesto and its Making Work Pay paper are notably absent, though there’s a commitment to implement these later. Missing provisions include: a ‘right to switch off,’ protecting employees from out-of-hours contact except in emergencies; mandatory ethnicity and disability pay gap reporting for large employers; a shift towards a simplified two-part employment status framework; and reviews of parental and carers leave to ensure these systems better serve both employers and employees.

This Bill proposes significant changes, but many details are deferred to future consultations and secondary legislation. For now, employers and employees alike should stay informed and prepare for further updates, with potential implementation as late as 2026.

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