Proposed Changes to Workers' Rights in the UK: What You Need to Know

The UK government is planning a major overhaul of workers' rights, which aims to provide stronger protections against unfair dismissal and enhance various employment benefits. Here’s a detailed look at what these changes entail.

Key Changes in the Employment Rights Bill

The upcoming Employment Rights Bill includes 28 measures that are touted as the most significant upgrade to workers' rights in a generation. However, many of these changes will not take effect until autumn 2026 after a consultation period.

Main Provisions

Unfair Dismissal Protections: The current two-year qualifying period for unfair dismissal protection will be eliminated. Workers will now have these protections from day one of employment, although they will still undergo a nine-month probation period during which they can be dismissed without full process.
Statutory Sick Pay (SSP): Employees will be entitled to SSP from their first day of illness, rather than after three days.
Removal of Earnings Limit for SSP: The existing threshold of £123 per week for claiming SSP will be abolished, though lower earners may receive a reduced rate of sick pay.
Paternity Leave: Fathers will gain eligibility for paternity leave from their first day of work instead of after 26 weeks.
Unpaid Parental Leave: Parents will be eligible for unpaid parental leave from day one, rather than after one year.
Unpaid Bereavement Leave: This will also become a right from the first day of employment.
Flexible Working Requests: Employers must consider flexible working requests from day one and can only refuse if they can demonstrate that it is unreasonable.

Impact on Workers

These changes are expected to benefit approximately nine million workers who have been with their current employer for less than two years. Additionally, around 30,000 fathers or partners could become eligible for paternity leave, while 1.5 million parents would gain access to unpaid parental leave immediately.

Government's Stance

Deputy Prime Minister Angela Rayner emphasized that these reforms aim to provide security for families while helping businesses retain essential staff. The government seeks to balance pro-worker initiatives with business needs, although many details remain undecided.

Business Concerns

Business groups have expressed apprehension about the practical implications of these changes:

Probation Period Concerns: Some fear that a shorter probation period could deter firms from hiring new employees or lead to job cuts.
Administrative Burdens: Business leaders like Dominic Ponniah from Cleanology have voiced concerns that these new regulations could make operations more challenging and create uncertainty in hiring practices.
Small Business Challenges: Tina McKenzie from the Federation of Small Businesses criticized the bill as poorly planned, suggesting it would leave smaller firms struggling to adapt.

Zero-Hours Contracts Debate

The bill also addresses zero-hours contracts:

Employers will need to offer guaranteed-hours contracts based on hours worked over a 12-week period.
Workers on zero-hours contracts will receive reasonable notice before any shift changes and may be compensated if shifts are canceled or cut short.

While some sectors prefer zero-hours contracts for their flexibility, others argue they do not provide sufficient stability for workers.

Looking Ahead

Union leaders like Gary Smith see this bill as a crucial step towards enhancing workers' rights but stress the importance of ensuring that it is free from loopholes. Some aspects of Labour's broader agenda, such as the "right to switch off" outside working hours, will not be included in this bill but may appear in future reforms.

As discussions continue, business leaders urge caution, emphasizing the need for stability and certainty in the economy as these changes are implemented.