The new Employment Rights Bill has arrived. The Bill still has some way to go before it is made law, however, its passage through the House of Commons and the Lords should be relatively plain sailing as the Bill is the enactment of Labour’s manifesto pledges. The Bill should become law in October 2026, and represents a fundamental re-balancing of employment rights in this country and will have massive implications for employees and businesses.
The Bill is 158 pages long. Here's a brief outline of the changes:
Unfair dismissal a "Day 1 Right" - the abolition of the qualifying period for unfair dismissal making it a day 1 right. However, the Bill allows for a different standard of reasonableness to apply during what is referred to as the ‘initial period of employment’ (likely to be the first 9 months). This effectively means there is likely to be a probationary period during which employers can follow a simplified, less onerous process.’ This will bring into scope millions of more employees who might be able to now bring claims. One can only wonder how the under-funded Employment Tribunal system will cope and how this will impact employers considering taking on new staff.
Other Day 1 rights - There are “day 1” rights to Statutory sick pay (no waiting period), paternity leave, unpaid parental leave and bereavement leave.
Zero hours contracts - These could become permanent after 12 weeks, if there is an identifiable pattern of working. This has huge implications for the gig economy and those industries that rely on flexible working.
Flexible working - There will be a presumptive right to flexible working: employers may still reject a request but only as long as this is “reasonable”.
Harassment - Employers will be liable for third party harassment, and the duty to prevent sexual harassment in the workplace will be extended so that the employer must take all reasonable steps.
Right to join a union - The right to join a union will be included in all new employment contracts.
Collective redundancy consultation - This will become more commonplace.
Fire and re-hire - Banned unless the business is basically going bust.
Gender equality action - There are additional responsibilities for larger employers (+250) to produce gender equality action plans.
Overall, the biggest shake-up to employment law rights in this country in over 30 years and a fundamental re-balancing.
We will ensure that you are kept up to date with these changes and what they may mean for your business. If you have any queries in the meantime, please get in touch with your usual contact at Constantine Law or message us here.