Employment Rights Bill 2024: New Updates for SMEs

Parliament Moves Forward with Changes to the Employment Rights Bill – What SMEs Need to Know

The Employment Rights Bill 2024-25 is set to introduce the most significant UK employment law changes in decades. Following key amendments on March 4, 2025, the bill is scheduled for its report stage and third reading on March 11-12, 2025 in Parliament. These landmark reforms will impact millions of UK workers and place new compliance obligations on businesses, particularly small and medium-sized enterprises (SMEs).

While these worker protections aim to modernise employment rights, the UK government estimates that they could cost businesses up to £5 billion annually. SMEs must act now to prepare for legal risks, update policies, and manage compliance costs effectively.

What Is the Employment Rights Bill?

The Employment Rights Bill 2024-25 strengthens workplace rights, increases employer responsibilities, and introduces new protections for workers. The bill follows years of legal challenges in the gig economy, post-pandemic employment reforms, and pressure from trade unions and policymakers.

Key Objectives of the Employment Rights Bill:

• Strengthen worker protections (e.g., unfair dismissal, sick pay, zero-hours contracts).
• Enhance workplace flexibility (e.g., flexible working from day one).
• Increase employer responsibilities (e.g., preventing workplace harassment).
• Restrict exploitative practices (e.g., limiting fire-and-rehire tactics).

These employment law reforms affect all UK employers, making it essential for businesses to understand and implement their new legal obligations.