With the new Labour government in power, they have quickly moved to deliver on their promise of major reforms to workers’ rights. Recently, they introduced the Employment Rights Bill, which they’ve described as the most significant overhaul of workers’ rights in a generation. These 2024 employment law changes will reshape the way businesses operate, although most changes won’t come into effect until 2026.
The Bill is just the beginning. The government will now consult the public on various proposals, and it will take secondary legislation to fill in the finer details. While the government plans to implement some reforms sooner than others, businesses should start preparing now, given the scale of change.
As part of its broader agenda, the government has published a document called Next Steps to Make Work Pay. This document outlines additional potential reforms that the Employment Rights Bill does not cover.
What’s in the Employment Rights Bill
Key Rights for Employees | Employment Law Changes
- Day-one rights: Employers will provide key protections, like the right to not be unfairly dismissed, from an employee’s first day of work. Employers will also offer immediate access to statutory sick pay and unpaid parental leave.
- Statutory Sick Pay (SSP): SSP will be paid from the first day of absence. This is a change from the current system, which starts on the fourth day. SSP will also be extended to those earning below the Lower Earnings Limit.
- Maternity and pregnancy protections: New protections for pregnant employees and new mothers will make it unlawful to dismiss them within six months of returning to work. This rule applies except in limited circumstances.
- Expanded paternity rights: Employers will grant paternity leave to fathers and eligible partners from day one of employment. Previously, they had to wait 26 weeks.
- Flexible working: Flexible working will become the default, and employers will need to show a reasonable justification to refuse requests. This will likely make it harder for employers to turn down such requests.
- Zero-hours contracts: Workers on zero-hours and low-hours contracts will have the right to request a contract that reflects their regular working hours after 12 weeks of employment.
- New bereavement leave rights: The government will introduce a new right to bereavement leave.
Changes to Employment Practices | Employment Law Changes
- New statutory probationary period: The government plans to introduce a statutory probationary period. This will make it easier for employers to dismiss unsuitable hires within their first nine months. Compensation during this time may be capped.
- Changes to industrial relations: Plans include repealing recent strike laws and simplifying union recognition processes. There are also new obligations for employers to inform workers about their rights to union membership.
- Fire and rehire restrictions: The Bill introduces tighter rules on firing and rehiring employees. It will be more difficult for employers to use this practice.
- Sexual harassment protections: Employers must take all reasonable steps to prevent sexual harassment. If they fail to stop third-party harassment, employees can file new claims against them.
- Gender pay gap and menopause support: Large employers will need to create action plans to close their gender pay gaps. They will also need to provide support for employees going through the menopause.
What’s Missing from the Employment Rights Bill (For Now)
- Single worker status: The government is still deciding whether to introduce a single status for all workers. This change would give everyone the same rights.
- Right to disconnect: The government has not yet made any immediate changes to allow employees to disconnect from work outside of their hours. However, they might introduce a code of practice later.
- Equality reforms: The government plans to introduce further equality reforms, including expanded pay gap reporting and protections, later this year under a separate Equality Bill.
- Changes to National Minimum Wage bands: The government has signalled its intent to remove age bands for the National Living Wage, making it available to all adult workers.
Preparing for the Employment Law Changes in 2024
With so many changes on the horizon, businesses need to assess how these changes will affect them. From statutory sick pay changes to the end of exploitative zero-hours contracts, employment law is about to transform.
If you’re unsure how to navigate these upxcoming changes, feel free to get in touch with us. We’re here to help you manage your people and prepare for the future of work.
