Employment Rights Bill published

The introduction of the Bill is the start of its progress through Parliament, and consultation on various aspects is set to run alongside. It’s thought the reforms created by the Bill will not be in force until Autumn 2026.

Alongside the Bill, a ‘Next Steps to Make Work Pay’ paper has been published. 28 measures are expected to be consulted on, despite the Bill having already been introduced. 30 measures, including the ‘right to switch off’ and a move towards single status of worker, have been left out and have no clear timetable for delivery.

Here are the key Day One rights measures which have made it into the Bill:

• Protection from unfair dismissal from the first day of employment, ending the existing two-year qualifying period. However, this will be accompanied by a statutory probation period of up to nine months for new hires, during which staff can be dismissed under a ‘lighter touch’ process.
• The right to statutory sick pay from the first day of illness, ending the current three-day waiting period, and removing the lower earnings limit.
• Day One rights to paid and unpaid paternity leave. Currently fathers have to be employed for 26 or 52 weeks respectively to receive the benefits, and there will be a new statutory right to bereavement leave.
• The right to flexible working. Where employers say no they will have to demonstrate the decision is reasonable against eight criteria.
• A ban on ‘exploitative zero hours contracts’. Workers on zero or short-hours contracts will have to be offered a contract based on the hours worked in a 12-week reference period, receive notice of shift patterns and entitlement to payment for short-notice cancellation.

While these measures are in the Bill as introduced, a lot of the detail has been left out, in order for consultation to inform amendments to the Bill during its progress, or as later regulations or codes of practice.  Areas subject to consultation are:

• The percentage replacement rate for those earning below the current flat rate of Statutory Sick Pay.
• Zero hours contracts.
• Updating trade union laws.

The Government says it will welcome views from stakeholders on how to support businesses to ensure that they are ready for the adjustments ahead of Autumn 2026.

The Federation has already started on this process, and you’ll find more information on the changes, and how you can get ready for them, in our Support & Guidance document.

Remember, we need your views on the reforms! Our survey only takes two minutes to complete and will help us feed back to Government about how the reforms will impact businesses.