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A major shake-up of workers' rights is underway, but the proposed reforms are still being developed and it remains unclear how some of them will work in practice.
Changes could still be made before most of them take effect in two years, but here's what's proposed and how it could affect you.
Unfair dismissal
From the first day of their employment, workers will have the right to claim unfair dismissal against their employer.
This is a major change from the current two-year waiting period.
However, it has been proposed that staff be subject to a nine-month probationary period, during which employers can dismiss someone more easily and without having to go through the full process required once the probationary period has ended.
But the proposals could still change, with the government planning a series of consultations. The new rights are not expected to come into effect until fall 2026.
Zero hours contracts and flexible working
Zero hours contracts are also called casual contracts. Employers don't guarantee workers hours, but they're also not obligated to work when asked.
Under the new legislation, business owners will be required to offer a zero-hours worker a guaranteed hours contract based on the hours they have completed over a 12-week period.
Employees who prefer to have a zero hours contract will be able to keep these terms if they wish – the change is that they will be entitled to guaranteed working hours if they wish.
Workers on zero-hours contracts will also be entitled to “reasonable” notice before any changes are made to their role, as well as compensation if a role is canceled or finished early.
Some business groups would prefer employees to have the “right to request” a move from zero hours to guaranteed work, rather than leaving it to employers to provide it. Some sectors, such as hospitality, argue that younger workers prefer zero-hours contracts to give them flexibility.
Flexible working
Flexible working must become the “default” standard for all workers, with employers required to say yes to staff requests from their first day of employment, unless they can prove it is “unreasonable”.
The government defines flexible working as a way of working “that meets an employee's needs”, such as having flexible start and finish times or working from home.
It is not yet clear what will be considered “unreasonable” or whether the current process will change radically.
As things stand, employees can request flexible working from their first day of work, but an employer can refuse an application if they have good commercial reasons to do so.
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Sickness benefit
The waiting period and lower income limit to qualify for statutory sick pay will be removed.
Currently, to qualify for sick pay you must have been ill for more than three consecutive days and earn on average at least £123 per week.
Under the Government's plans, employees will be entitled to statutory sick pay from the first day they are ill and those earning less than £123 a week will also be entitled to it.
You can receive £116.75 a week in statutory sick pay if you are too ill to work and this is paid by your employer for up to 28 weeks. Some may get more if their company has a sick pay system.
Unpaid parental and bereavement leave
Currently, parents are only allowed to take unpaid parental leave if they have worked in a company for more than a year. The government plans to change this so that it becomes a right from “day one” of employment.
The same will apply to bereavement leave.
Any person legally considered to be an employee is entitled to leave in the event of the death of a dependent.
A dependent could be:
HusbandWifePartner or civil partnerChildParentA person who lives in their household (no tenants, tenants or employees)A person who is dependent on them, such as an elderly neighbor
What's not in the Employment Rights Bill?
Some measures included in Labor's “make work pay” plan, published in the run-up to the general election, were not included in the employment rights bill, sparking criticism criticism of unions.
For example, the “right to disconnect”, which prevents employers from contacting staff outside of business hours by telephone, email and text message, has been scrapped.
The commitment to create a “single worker status” does not appear in the bill either. The aim was to increase protection for people who are considered self-employed, but who work largely for a single employer and yet currently benefit from fewer rights than other employees.
However, it is understood that legal complexities mean this issue will need to be revisited at a later date.
