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Employment Rights Bill

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Employment Rights Bill

SECTION GUIDE

What is the Employment Rights Bill?

The Employment Rights Bill (ERB) is a wide-reaching piece of UK legislation that aims to modernise employment law and create a fairer balance between workers and employers. First announced in the Government’s policy agenda, the Bill brings together a series of reforms that impact how businesses recruit, manage, and retain staff.

Its core focus is on:

  • Strengthening workplace protections.
  • Increasing flexibility for workers.
  • Ensuring predictability in contracts and working patterns.
  • Expanding family-friendly rights.

For employers, the ERB represents one of the most significant updates to employment law in over a decade, requiring careful preparation to avoid risk.

What does the Employment Rights Bill mean in HR?

The Bill introduces new employee rights and employer obligations that directly impact HR processes, contracts, and policies. Key measures include:

Flexible Working as a Day-One Right

  • Employees can request flexible working from the first day of employment.
  • Employers must handle requests within a shorter timeframe (likely reduced from 3 months to 2 months).
  • Refusals must be justified with one of the statutory reasons.

 Predictable Working Hours for Zero-Hours and Agency Workers

  • Workers will have the right to request a predictable working pattern after a qualifying period (e.g. 26 weeks).
  •  Designed to protect staff in sectors relying heavily on casual or variable hours.

Stronger Redundancy Protections for Parents

  • Pregnant employees and those returning from maternity, adoption or shared parental leave will gain priority for redeployment opportunities.
  • Reduces risk of discrimination claims during redundancy exercises.

Reforms to Unfair Dismissal and Probationary Periods

  • The Bill may lower the qualifying period for unfair dismissal claims, meaning employers must manage probation periods more carefully.
  • Dismissals will face greater scrutiny at tribunals.

Enhanced Family Leave and Pay

  • Extension of statutory leave rights to cover broader groups of employees.
  • Simplified processes for requesting and managing leave.

Strengthening Enforcement and Worker Protections

  • Improved access to employment tribunals.
  • Potential introduction of single enforcement bodies to monitor compliance.

  • Why does the Employment Rights Bill matter for your business?

    The ERB is not just about compliance — it shapes the future of workforce management.

    Risks of Non-Compliance:

    • Tribunal claims from employees if new rights are ignored.
    • Financial penalties and compensation orders.
    • Reputation damage from being seen as non-compliant or inflexible.

    Strategic Opportunities:

    • Build a stronger employer brand by embracing flexibility and fairness.
    • Improve employee retention by offering predictable and family-friendly policies.
    • Enhance productivity and morale through clearer policies and reduced disputes.

  • Employment Rights Bill – best practices for employers

    To prepare, SMEs and HR teams should:

    • Audit existing contracts – review zero-hour, casual, and agency arrangements.
    • Update policies – covering redundancy, flexible working, family leave, and dismissal processes.
    • Train managers – particularly around handling flexible working requests and conducting fair redundancies.
    • Introduce HR technology – systems like BreatheHR help log requests, approvals, and compliance.
    • Engage HR consultants – for tailored advice on high-risk areas such as dismissals and contract management.

Your Questions Answered

FAQs on the Employment Rights Bill

  • Where can I get help preparing for the Employment Rights Bill?Reveal

    impact HR offers policy reviews, training, and HR systems support to help SMEs stay compliant.

  • What’s the penalty for ignoring the Employment Rights Bill?Reveal

    Non-compliance could lead to employment tribunal claims, compensation orders, or reputational harm.

  • Will SMEs be treated differently from larger employers?Reveal

    No — all employers, regardless of size, will need to comply. However, SMEs may face proportionally greater challenges and should seek early HR support.

  • Does the Employment Rights Bill changes affect probationary periods?Reveal

    Yes — with unfair dismissal rights potentially accessible earlier, employers must manage probation reviews with clear documentation and feedback.

  • What changes to the Employment Rights Bill apply to redundancy?Reveal

    Employees on maternity, adoption, or shared parental leave will have priority for redeployment opportunities before redundancy can be finalised.

  • How will the Employment Rights Bill affect zero-hours contracts?Reveal

    Workers will be able to request fixed or predictable hours. This could increase costs for employers who rely on casual arrangements but will reduce disputes and unpredictability.

  • Do I need to grant every flexible working request?Reveal

    No — but you must consider requests fairly and provide a valid statutory reason if refusing (such as cost or impact on service delivery).

  • When will the Employment Rights Bill come into force?Reveal

    The Bill is expected to roll out in stages from 2024–2025, with different reforms introduced gradually to give businesses time to adapt.

  • What is changing under the Employment Rights Bill?Reveal

    Employees will gain day-one rights for sick pay, parental leave, and unfair dismissal protection. Flexible working and zero-hours protections will also be strengthened.

  • Who is responsible for ensuring compliance with the Employment Rights Bill?Reveal

    Ultimately, company directors hold legal responsibility, but HR and line managers play a key role in implementing processes.

  • Can employees claim unfair dismissal earlier under the new rules?Reveal

    Yes, the Bill proposes reducing the qualifying period for some unfair dismissal claims, making it vital to manage probation and performance correctly.

  • How will this affect zero-hours contracts?Reveal

    Employees will gain the right to request predictable working hours after a qualifying period, reducing uncertainty for workers.

  • Do I have to accept all flexible working requests?Reveal

    No, but you must follow a fair and reasonable process, providing one of the statutory reasons if refusing.

  • When will the Employment Rights Bill take effect?Reveal

    The Bill is expected to be implemented gradually from 2024–25 onwards, with different measures introduced in stages.

Where to find out more A collection of hand-picked useful resources in relation to the Employment Rights Bill from impact HR and beyond

Need support with preparing for the Employment Rights Bill?

Whether you’re updating HR policies, training managers, or handling complex employee issues, impact HR can help you stay compliant, confident, and in control. Request a callback to see how we can support your business.

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