The UK government is today introducing a landmark Employment Rights Bill aimed at modernising workers’ rights, improving working conditions, and benefiting businesses of all sizes, especially in the social sector. Here’s a brief overview of the key changes and how they may impact small employers:
Key Reforms for Employers:
Day-One Rights: The bill extends protections from unfair dismissal and introduces rights to parental, paternity, and bereavement leave from day one of employment. For employers, this means being prepared to manage these new entitlements from the start of an employee’s contract.
End to Zero-Hour Contracts and Fire-and-Rehire: It is proposed that exploitative zero-hour contracts and unscrupulous fire-and-rehire practices will be abolished. Workers on irregular hours will have the right to guaranteed hours, providing them with income security. This could help businesses retain staff and reduce turnover costs.
Flexible Working as Default: Flexible working will be made the default through the bill, unless an employer can prove it’s impractical. This will encourage a more inclusive workplace, especially for working families and carers, reducing absenteeism and increasing job satisfaction.
Stronger Protections for Pregnant Women and New Mothers: Employers will need to be aware of the enhanced protections against dismissal for pregnant women and those returning from maternity leave, ensuring compliance with new legal standards.
Probationary Periods: The bill proposes a new statutory probation period, giving employers the chance to assess a new hire’s suitability without losing sight of their day-one rights.
Fair Work Agency: A new agency will help enforce key rights, including holiday and sick pay. It will also provide guidance to employers on legal compliance, making it easier to navigate the changing landscape.
Statutory Sick Pay: The requirement to wait for 3 days before SSP is applied will be removed and the lower threshold for eligibility will be removed as well, providing SSP rights to all employees. The government is looking into a different level of SSP for those on a lower weekly pay.
Impact on Employers: 
While these changes may require adjustments, by offering fair, secure, and flexible working conditions, employers could improve staff retention, productivity, and attract a more diverse workforce—ultimately supporting sustainable growth and reducing recruitment costs.
For social sector employers, embracing these reforms will not only help meet legal obligations but also contribute to creating a more positive workplace culture, keeping staff motivated and engaged.
What next?
It’s likely that many of these changes will require secondary legislation, so we may be waiting into 2025, or possibly 2026, for some of these changes to become law.
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