The UK government is preparing to unveil an ambitious Employment Rights Bill that promises to transform workers’ protections and redefine employer obligations.
Dubbed the “biggest upgrade to rights at work for a generation” by Deputy Prime Minister Angela Rayner, the new bill introduces 28 provisions that aim to balance employee rights with business needs.
It will offer enhanced protections for millions of workers, particularly those in precarious employment situations while requiring employers to adapt to more stringent regulations.
Key Changes in Workers’ Rights
The Employment Rights Bill includes sweeping reforms affecting job security, parental leave, and flexible working arrangements.
These changes are set to be implemented gradually, with most provisions expected to take effect by autumn 2026. Some of the most notable measures are:
Protection from Unfair Dismissal from Day One
One of the most significant changes is the removal of the two-year qualifying period for unfair dismissal protections.
Workers will now be protected from unfair dismissal starting on their first day of employment, potentially benefiting up to nine million workers.
This measure aims to provide greater job security, ensuring that workers can raise concerns or exercise their rights without fear of retaliation.
Enhanced Parental and Bereavement Leave
The bill grants day-one eligibility for unpaid parental leave, allowing parents to take time off to care for their children from the start of employment.
Similarly, unpaid bereavement leave will also become a day-one right, providing workers with the support needed to handle personal loss.
Additionally, paternity leave will now be accessible immediately, rather than after 26 weeks of employment, benefiting approximately 30,000 fathers or partners.
Statutory Sick Pay (SSP) from Day One
Under the new legislation, workers will be entitled to SSP from their first day of illness, a significant change from the current four-day waiting period.
Furthermore, the bill removes the lower earnings limit for SSP eligibility, though it introduces a reduced level of sick pay for lower earners.
This reform is intended to support workers in lower-income positions who may have previously been ineligible for SSP due to their earnings.
Zero-hours Contracts and Shift Notice Requirements
To address concerns about zero-hours contracts, employers will be required to offer guaranteed-hours contracts based on an employee’s average hours over 12 weeks.
Workers on zero-hours contracts will also receive reasonable notice of shift changes, with compensation provided for late cancellations.
The reform seeks to provide greater stability for workers in fluctuating positions, though some sectors, like hospitality, argue that zero-hours contracts offer needed flexibility.
Flexible Working Requests from Day One
The new law mandates that employers consider any flexible working requests from the first day of employment. Employers must approve requests unless they can demonstrate that it would be unreasonable to do so.
This provision acknowledges the growing demand for flexible work arrangements and is designed to support work-life balance for employees across various sectors.
Employer Concerns and Economic Impact
While trade unions have largely welcomed the Employment Rights Bill, the business community has expressed apprehensions about the proposed changes.
Small business representatives, such as Tina McKenzie from the Federation of Small Businesses, argue that the new regulations could be challenging for smaller firms to implement, calling the bill a “rushed job” and highlighting concerns over the complexity of the measures.
Similarly, some business owners fear that increased job protections and changes to sick pay could impose new costs and administrative burdens.
Dominic Ponniah, CEO of Cleanology, explained that these changes make his company more cautious in hiring decisions. “Hiring people is quite a big thing, costly, and people are concerned about the ramifications after these announcements,” Ponniah said.
Despite these concerns, Business Secretary Jonathan Reynolds insists that the bill is designed to be “pro-worker and pro-business,” aiming to enhance job security while giving employers the flexibility to grow.
However, the government has stated that it will conduct consultations on many of the measures to ensure that they balance worker rights with business needs.
Strengthening the Social Contract: A Step Towards Fairness
Angela Rayner emphasized the importance of the Employment Rights Bill in raising the standard for workplace rights, describing it as a foundation for a “stronger, fairer, and brighter future of work for Britain.”
Trade unions like GMB see the bill as a milestone, with General Secretary Gary Smith calling it a “groundbreaking first step.” However, Smith also urged further improvements to ensure that the legislation is comprehensive and free of loopholes.
Under the new legislation, the government will also consider introducing a statutory probation period, potentially capped at six months.
While this provision could simplify hiring for businesses, some unions are concerned it may discourage firms from taking on new employees if probation periods are perceived as too short.
Addressing Zero-Hours Contracts
The debate around zero-hours contracts is a central theme in the Employment Rights Bill.
The bill mandates that employers offer guaranteed hours based on recent work patterns, and provide compensation if shifts are canceled at short notice.
While some, like first-year university student Ruby, appreciate the flexibility of zero-hours contracts for temporary work, others argue that it leaves workers in an insecure financial position.
By proposing a solution that allows for both guaranteed hours and flexibility, the government hopes to offer better security for workers while preserving some benefits for those who favor flexible work arrangements.
A New Era for Workers’ Rights in the UK
The Employment Rights Bill signals a shift toward more robust worker protections in the UK, aiming to address issues that have long affected job security and work-life balance.
By eliminating exploitative practices and setting new standards for parental leave, sick pay, and flexible working, the government aims to create a more equitable work environment for millions.
However, the success of the bill will hinge on the balance it strikes between supporting workers and allowing businesses to operate efficiently.
As details are finalized and consultations continue, the government and stakeholders will need to work together to ensure that the new regulations deliver meaningful change without placing undue burdens on businesses.
Looking Forward
The Employment Rights Bill, while ambitious, marks a significant step in redefining workers’ rights in the UK.
By addressing the needs of both employees and employers, the government is laying the groundwork for a labor market that fosters stability, flexibility, and fairness.
As these reforms take shape, the UK could set a new benchmark for workers’ rights, paving the way for other nations to follow suit in enhancing protections for their workforce.
