The Employment Rights Bill 2024, published on 10 October 2024, marks a significant reform in UK employment law, aligned with Labour's commitment to enhance worker rights. Touted as the "biggest upgrade to rights at work for a generation," this landmark bill is part of the government’s “Plan to Make Work Pay.” While it aims to improve job security and modernize statutory provisions, most reforms will take effect in 2025 or 2026, allowing stakeholders ample time to prepare. Some changes, such as the repeal of the Strikes (Minimum Service Levels) Act and minimum wage updates, will begin as early as April 2025. Please note that section 117 sets out the territorial extent of the Bill, where certain sections only apply to certain countries.
Key Reforms Under the Employment Rights Bill 2024:
- Guaranteed Hours: Workers on zero-hours contracts will have the option to receive guaranteed hours.
- Day One Rights: Employees will gain the right to claim unfair dismissal, request flexible working, and take unpaid parental leave from their first day of employment.
- Statutory Sick Pay (SSP): Workers will qualify for sick pay starting from their first day of illness, even if earning below the previous £123 threshold.
- Bereavement Leave: All employees will have enhanced entitlements to bereavement leave from day one.
- Paternity and Unpaid Parental Leave Flexibility: Entitlement to paternity and unpaid parental leave will also be available from day one.
- Fair Work Agency: A new agency will be established to enforce workers’ rights.
- Enhanced Protections: Increased protections against sexual harassment at work.
- Repeal of the 2016 Trade Union Act: This act, which limited the strike rights of trade unions, will be repealed.
Possible System Impact Summary
Once enacted, these policy changes may require updates to the leave module, as outlined below.
Statutory Sick Pay (SSP) Reforms
Currently, SSP requires employees to earn at least £123 per week and is only available from the fourth day of absence. Under the new bill:
- The Lower Earnings Limit will be removed, making SSP accessible to all employees, regardless of weekly earnings.
- SSP will become available from the first day of sickness, eliminating the waiting period and benefiting approximately 1.3 million low-paid workers.
- The Fair Work Agency, a new enforcement body, will oversee SSP, simplifying enforcement and dispute resolution.
Enhanced Bereavement Leave Entitlement
Presently, statutory bereavement leave is limited to parents who lose a child under 18. The bill establishes a day-one entitlement to bereavement leave for all employees, ensuring they have protected time off to grieve the loss of a loved one. This provides a standard framework, encouraging compassionate responses from employers.
Shared Parental Pay Reforms
Currently, Shared parental pay is a benefit for eligible parents who share childcare responsibilities in the first year after birth or adoption. Parents can share up to 50 weeks of leave and 37 weeks of pay. This leave can be taken all at once or in blocks, allowing parents to coordinate their time off together or stagger their leave. The bill will:
- Eliminate Service Requirements: Remove the 26-week employment requirement for paternity leave and the one-year requirement for unpaid parental leave.
- Day-One Eligibility: Employees will be entitled to both paternity and unpaid parental leave from day one, provided they give the required notice.
- Increased Flexibility: These reforms offer employees more flexibility to balance work and caregiving.
With these reforms, the Employment Rights Bill 2024 signals a new era for UK employment law, enhancing protections and fostering a more adaptable work environment. We will continue to monitor the bill’s progress and provide further insights as consultations advance.