The Employment Rights Bill, introduced to Parliament on 10 October 2024, is intended to update and modernise UK employment law, and is the first phase of the Government’s commitment to deliver the plan to ‘Make Work Pay’.
The Make Work Pay initiative is geared towards growing the economy, improving living standards across the country and creating opportunities for all, and aims to achieve these things by tackling low pay, inadequate working conditions and poor job security.
At time of writing, The Bill is currently on its 3rd reading in the House of Lords after which any amendments will be considered.
What we know so far – key points
- The Bill intends to improve access to flexible working, by making it harder for employers to refuse flexible working requests. Rejections must be ‘reasonable’, and it will be the employer’s responsibility to ensure this can be illustrated.
- Paternity leave and unpaid parental leave will become a day one right, with current qualifying periods being removed.
- The Bill seeks to better protect zero hour/low hour workers, by giving them the right to be offered a contract reflecting regular hours, should their hours regularly exceed the zero/minimum hours over a 12-week reference period, as well as the right to advance notice of shifts and compensation for cancellations.
- Statutory Sick Pay (SSP) will be made available to all workers, with no waiting period and no earnings threshold. SSP will be set at 80% of average earnings for workers who earn below the statutory rate of SSP.
- Whilst not explicitly dealt with in the Bill, National Minimum Wage (NMW) and National Living Wage (NLW) rates are expected to go up again in April 2026. The government remains committed to phasing out the 18-20 rate altogether, so that the same rate will eventually apply to all workers aged 18 or above.
- The Bill will place responsibility on employers to keep records documenting compliance with the rules on statutory holiday entitlement and pay for at least six years.
Next steps
There will be consultation on the detail included in the Bill in the months ahead, with the majority of reforms not expected to take effect until 2026 at the earliest.
In the meantime, businesses, employers and employees can read more about the measures detailed in the Bill, in these GOV.UK factsheets.
The Employment Rights Bill brings important changes that no business can afford to overlook. As an experienced payroll bureau, we’re here to help you understand the implications, to prepare for the changes, and to stay compliant. Contact us today to find out how we can support you.
