The Employment Rights Bill, introduced by the Government today, has been described as the biggest upgrade to rights at work for a generation — although many of the changes will be subject to consultations that will see implementation delayed for two years.

According to the Department for Business and Trade (DBT), the Bill will end exploitative zero-hours contracts and unscrupulous fire and re-hire practices, while establishing rights to paternity, bereavement and parental leave from day one.

Those on low-hours contracts will now have the right to a guaranteed-hours contract if they work regular hours over a defined period, giving them, the Government argues, security of earnings whilst allowing people to remain on zero-hours contracts, should they so wish.

The existing two-year qualifying period for protections from unfair dismissal will be removed and the Government will also consult on a new statutory probation period for new recruits to allow for a proper assessment of an employee’s suitability for a role.

In total, the Bill will bring forward 28 employment reforms, with Statutory Sick Pay (SSP) being strengthened by removing the lower earnings limit for all workers and cutting out the waiting period before sick pay can be claimed.

Deputy Prime Minister, Angela Rayner, said: “Too many people are drawn into a race to the bottom, denied the security they need to raise a family while businesses are unable to retain the workers they need to grow. We’re raising the floor on rights at work to deliver a stronger, fairer and brighter future of work for Britain.”

She highlighted measures to help make the workplace more compatible with people’s lives, with flexible working made the default “where practical”.

Large employers will also be required to create action plans on addressing gender pay gaps and supporting employees through the menopause, while protections against dismissal will be strengthened for pregnant employees and new mothers.

The DBT has said that a new Fair Work Agency will bring together existing enforcement bodies in order to enforce rights such as holiday pay and to support employers looking for guidance on how to comply with the law.

The Government has said that it plans to repeal the anti-union legislation put in place by the previous administration, including the Strikes (Minimum Service Levels) Act 2023 legislation.

Headline measures

The proposed legislation will:

• make flexible working the default for all, unless the employer can prove it would be unreasonable

• establish a new right to bereavement leave, focused on the needs of employees and the concerns of employers

• strengthen protection from dismissal whilst pregnant, on maternity leave and within six months of returning to work

• take account of the cost of living when setting the minimum wage and remove discriminatory age bands

• ensure that the Fair Work Agency will enforce holiday pay for the first time and will strengthen SSP.

Subject to consultation

Moving on from the Bill, the Government plans to seek comments on:

• a right to switch off, preventing employees from being contacted out of hours, except in exceptional circumstances

• making it mandatory for large employers to report their ethnicity and disability pay gap

• moving towards a single status of worker and transitioning towards a simpler two-part framework for employment status

• plans to review the parental leave and carer’s leave systems to ensure they are delivering for employers and workers.

Full details of the Bill can be found here.