Employment Rights Bill 2024: Key Changes for Employers and Employees

The Employment Rights Bill 2024 introduces significant changes to employment law, impacting both employers and employees across the UK. These reforms aim to enhance worker protections and modernise workplace rights, shaping future employment practices. Below is a breakdown of the key changes that employers and employees need to know.

Key Changes in the Employment Rights Bill 2024

1. Enhanced Unfair Dismissal Protection

The most important change made by the Bill is for employees to have unfair dismissal rights from day one, rather than after 2 years of employment.

There is to be a “light touch” process, rather than the full procedural requirements currently required for a fair dismissal. During an initial/probationary period, but what this procedure is to be, and the length of the probationary period, is not yet clear as these are matters to be consulted upon.

What is clear is that employers must have a fair reason to dismiss employees from the moment they start work. To avoid liability for unfair dismissal claims, they must also follow at least some form of process.

2. Restricting Zero and Minimum Hours Contracts

Under zero hours contracts workers have irregular hours without any guarantee of work, with it being possible to cancel shifts at the last minute.

For minimum hours contracts workers may be offered only a small number of guaranteed hours.

How guaranteed hours are to be calculated, what the reference period is and what constitutes “low hours”  remain to be decided.

The Bill requires employers to give relevant workers reasonable notice of required work. They must also notify workers of shift changes or cancellations. Employers are liable to compensate workers for breaching these rules.

At the moment, these new laws do not apply to workers on fixed-term contracts if their engagement is “reasonable.” They also do not apply to agency workers, though this may change.

3. Enhanced Statutory Sick Pay Entitlement

There will no longer by any qualifying period nor a lower earnings threshold for employees to entitled to Statutory Sick Pay.

4. Enhanced Family Friendly/Flexible Working Rights

From the day their employment starts employees will be entitled to paid paternity leave and parental leave. Additionally, a new entitlement to unpaid bereavement leave from day one will be introduced, alongside existing rights to paid parental bereavement leave and unpaid time off for dependants.

Employers will also need to give greater consideration to Flexible Working Requests.  If an employer rejects a request then, under the Bill they will have to show that in relying on the particular reasons set out in the existing legislation, it was reasonable to do so and will also have to explain why this is the case.

5.  Enhanced Protection from Harassment  and for Workers Reporting Abuse

Currently, employers are required to take reasonable steps to prevent employees being subject to sexual harassment by third parties (such as client or customers) during the course of their employment. Under the Bill, employers will be obliged to take all  reasonable steps to prevent all forms of unlawful harassment by third parties.

In addition, complaints of sexual harassment will, under the Bill, constitute protected whistleblowing which means, in particular, that NDAs with regard to sexual harassment will now be ineffective.

6. Restrictions on Fire and Re-Hire

To introduce changes to terms and conditions, employers are able to fire employees and re-engage them on new terms where they have a sound business reason to do so (and follow a suitable consultation process).

This practice will be severely restricted by the Bill, which provides that employers will only be able to adopt this practice where the business is in severe financial difficulty and the new terms are required, and can not reasonably be avoided, because of this.

7. Enhanced Redundancy Consultation Rights

Currently, when an employer proposes 20 or more redundancies “at one establishment” within a 90-day they must first go through a collective consultation process with employee representatives.  “One establishment” has been interpreted as meaning one site or workplace.

The Bill has now removed this provision, meaning the collective consultation rules will apply if an employer proposes 20 or more redundancies across the organisation. This change makes it more likely that the rules will apply to businesses with multiple sites where redundancies are taking place.

When will the Employment Rights Bill 2024 Taken Effect?

As of February 2025, the Employment Rights Bill 2024 has not yet taken effect. Introduced to Parliament in October 2024, the Bill is still undergoing parliamentary scrutiny and consultation, and it is not expected to become law until 2026, with some reforms taking effect earlier in the year and some later.

Employers and employees should stay informed about the Bill’s progress, including any proposed amendments that may expand worker rights. This allows them to prepare for the new rules in advance and take necessary steps before they come into effect.

Implications for Employers

Employers will need to:

• Review their existing staffing arrangements and contract terms and consider making changes before it becomes more difficult to do so.

• Update contracts and procedures to take account of and comply with the new law, revising policy documentation.

• Train management how to apply the new rules, particularly with regard to performance and conduct management requirements for employees with less than two years service.

Failure to prepare for and comply with the new law will result in significant businesses costs and legal liability. Employers should now determine what steps to take and when to implement them.

Impications for Employees

For employees, the Bill brings a range of enhanced entitlements, including stronger job security, and better workplace protections. Employees should:

• Take advice on existing entitlements should employers seek to make any changes to their detriment before the Bill comes into effect.

• Be sure that your employee makes changes reflecting your new entitlements, taking action if they are not doing so in advance of them taking effect, or fail to do so afterwards.   

Conclusion

The Employment Rights Bill 2024 brings significant changes to employment law. It strengthens worker protections while increasing responsibilities and costs for employers.

As these changes take effect, employers and employees must stay informed. Taking proactive steps will help ensure compliance with the new regulations.

If you’re unsure how the Bill impacts your business or job, seek legal advice. An expert can guide you through these changes.