Key Changes in the Employment Rights Bill 2024: What Workers and Employers Need to Know

The focus has been quite rightly on the introduction of new sexual harassment laws and the preventative duty on employers. However, the Bill introduced several measures aimed at improving workers’ rights, ensuring fair treatment, and promoting a healthy work-life balance which employers must familiarise themselves with. Some of the changes are already in place, some will be implemented this year, whilst most of them are not likely to be implemented until 2026.

Recap of the Key Provisions of the Bill

1. Flexible Working Rights (introduced 6 April 2024)
   * Employees gained the right to request flexible working arrangements from their first day of employment.
   * Employers are now required to consider such requests within a maximum of 2 months (reduced from 3 months), and it now must be reasonable to rely on one of the statutory reasons if denied. There is going to be consultation to develop the approach to flexible working.
   
2. Tips and Gratuities (introduced 1 October 2024)
   * Employers now need to maintain a written tipping policy which ensures that workers receive tips, gratuities and service charges in full, and in a fair and transparent way.
   * Consultation with representatives of the workforce or the actual worker on the policy is required and a regular review of the policy.
   
3. Protection From Harassment
   * Employers are required to take reasonable steps to prevent sexual harassment of employees during the course of their employment (introduced 24 October 2024) however under the Bill this is anticipated to change to a requirement to take “all” reasonable steps to prevent sexual harassment.
   * Employers will also be under a duty to take all reasonable steps to prevent third party, such as a customer or client, sexual harassment of an employee in the course of their employment and to prevent third party harassment in relation to the other protected characteristics (e.g. race, disability, age).
   * Those reporting sexual harassment have also gained whistleblowing protection and protection from detriment and dismissal as applicable if they are an employee (awaiting introduction).
   
4. End of ‘Fire and Rehire’ Practices (introduced 20 January 2025)
   * Employees dismissed for refusing to accept detrimental contract changes will have new automatic unfair dismissal rights, unless the employer can provide evidence of serious financial difficulties necessitating the dismissal, and that it could not be reasonably be avoided.
   
5. Enhanced Parental Leave and Dismissal During Pregnancy or Following Family Leave (anticipated to take effect in 2026)
   * Parental leave entitlements will be expanded.
   * Special provisions will also be introduced for adoptive parents, foster parents, and guardians.
   * The Government intends to make it unlawful to dismiss employees who have been pregnant within six months of their return to work, save for in specific circumstances which are yet to be defined.
   
6. Statutory Sick Pay (anticipated to take effect in 2026)
   * The Bill will remove the three-day waiting period for any period of entitlement making SSP payable to employees from the first day of incapacity for work rather than the fourth day.
   * All employees will be eligible for SSP as the lower earnings limited threshold for eligibility will be removed.
   
7. Day-One Employment Rights (anticipated to take effect in 2026)
   * Employees will have protection against unfair dismissal from the first day of employment. However, this is accompanied by the introduction of a statutory probation period in which there will remain the option to give notice to terminate once a light touch procedure has been followed for specified reasons (e.g. capability) without unfair dismissal claims arising. This is proposed to be nine months, subject to further consultation.
   * Eligible employees will have immediate entitlements to paternity, (unpaid) parental and bereavement leave upon commencing employment.
   
8. Zero-Hour Contracts Regulation (anticipated to take effect in 2026)
   * Workers on zero-hour contracts are to be granted a right to guaranteed hours after a specified period of consistent work (e.g. over 12 weeks).
   * Employers will be required to provide reasonable notice of shifts, and workers will be entitled to compensation if shifts are cancelled or curtailed at short notice.
   
9. Collective Redundancies (anticipated to take effect in 2026)
   * The current position is that employers must collectively consult when they propose to make 20 or more employees redundant at any one establishment (i.e. site) within a 90-day period. The Bill removes the “one establishment” threshold meaning that all businesses will need to collectively consult and notify the Secretary of State where it is proposing to dismiss as redundant 20 or more employees across the whole business within a period of 90 days or less.
   * The shift means there is a move away from looking at the proposed redundancy numbers on a site-by-site basis to the total numbers across the business potentially impacted to determine whether collective consultation obligations kick in.
   * The Bill also intends to modernise trade union legislation which will grant them new rights of access to workplaces. The new provisions are complex however the Bill will increase trade unions access to the workplace to meet, represent, recruit, or organise workers and facilitate collective bargaining. For example, employers will be obligated to inform employees of their right to join a trade union, the threshold requires for trade unions to gain statutory recognition will be lowered and remove restrictions that previously required unions to maintain minimum service levels during industrial actions. The changes collectively aim to strengthen the role of trade unions, promote collective bargaining and enhance workers’ rights across various industries in the UK.

Whilst the Bill has been introduced, most of the changes will not take place until 2026, following further consultations and the development of detailed regulations. Nonetheless, employers should start preparing and thinking about how they might update their employment contracts, policies and procedures to align with the forthcoming changes, and keep an eye on the introduction of such changes Early preparation will facilitate compliance once the legislation is enacted.

The Government also published a Next Steps policy paper which outlines the steps the Government intends to implement in the future, such as enabling employees to collectively raise grievances about workplace conduct.

If you would like to discuss how these new changes impact you, please do get in touch with our Employment Team on 020 8290 0440 (Bromley) or 01732 496 496 (Sevenoaks) or email employment@thackraywilliams.com.