​KEY AMENDMENTS: THE EMPLOYMENT RIGHTS BILL

The Employment Rights Bill: Key Amendments Every Employer Needs to Know

In October 2024, the UK government introduced the Employment Rights Bill, setting out major reforms to employment legislation. Now, with over 200 pages of amendments published, significant changes have been made—particularly around collective consultation, zero-hours contracts, agency workers, statutory sick pay, and trade union rights.

For employers, these amendments will reshape hiring, workplace policies, and compliance obligations. Here’s what you need to know.

1. Strengthening Collective Consultation

One of the government’s key aims is to eliminate ‘fire and rehire’ practices by making it unfair to dismiss employees who refuse contract changes and tightening redundancy consultation rules.

Key changes:

• Increased penalties: The protective award for failing to comply with collective consultation rules has doubled from 90 to 180 days’ pay, discouraging employers from bypassing their legal duties.
• Broader redundancy thresholds: Previously, redundancy consultation was triggered when 20 or more employees were affected within a single workplace. Now, this applies across the entire business, making it harder to split redundancies to avoid consultation.

This means employers must plan workforce changes carefully and engage with employees transparently to avoid costly penalties.

2. New Protections for Zero-Hours & Agency Workers

The Bill introduces job security measures for zero-hours and low-hours workers, including:
✔ Guaranteed hours for those regularly working shifts.
✔ Minimum notice periods for shift changes.
✔ Compensation for last-minute cancellations.

Initially, agency workers were excluded from these protections, but the amendments now extend them to ensure fair treatment.

For agency workers, this means:

• Guaranteed hours must be offered by the end hirer (the company they work for).
• Reasonable notice of shifts must come from both the employment agency and the end hirer.
• Short-notice cancellations must be paid for, ensuring workers aren’t left unpaid for cancelled shifts.

This reduces the flexibility employers have relied on, so businesses using zero-hours or agency staff must reassess contracts and scheduling policies.

3. Statutory Sick Pay (SSP) Becomes a Day-One Right

The Bill removes the waiting period and earnings threshold for SSP, meaning:
✔ All workers are entitled to SSP from day one, regardless of how much they earn.
✔ For lower-paid workers, SSP will be calculated at 80% of normal earnings rather than a flat rate.

This shift ensures that part-time and low-income workers receive financial support when they’re unwell, but it also means employers will face increased SSP costs.

4. Trade Union & Industrial Action Reforms

To modernise industrial relations, the Bill introduces:

• E-balloting for strike votes.
• Extended strike mandates (from 6 to 12 months).
• Reduced notice periods for industrial action (down to 10 days).

These changes empower unions and make industrial action easier, so employers should prepare for a potential increase in disputes and strengthen employee engagement strategies.

5. The Fair Work Agency & Employer Penalties

The government is also creating a Fair Work Agency (FWA) to enforce employment rights more proactively. The FWA will have the power to:
✔ Issue underpayment notices for unpaid minimum wage, SSP, or holiday pay.
✔ Pursue tribunal cases on behalf of workers, reducing the risk of claims being abandoned due to financial barriers.

This means compliance will be more closely monitored, and businesses failing to meet employment obligations may face enforcement action faster.

What Was Left Out?

Despite speculation, the Bill does not include:
❌ A “Right to Switch Off”—Labour had proposed a policy to protect employees from out-of-hours communication, but this is now expected to be handled via a Code of Practice rather than law.
❌ A change to unfair dismissal rules—There were concerns the government might introduce day-one unfair dismissal rights, but this has not been confirmed.

What Happens Next?

The Bill is still progressing through Parliament, with further consultations and secondary legislation expected later this year. Employers should:
✔ Review current employment contracts and policies to align with the upcoming changes.
✔ Prepare for increased obligations around redundancy consultation, zero-hours protections, and statutory sick pay.
✔ Stay informed on additional amendments, particularly regarding agency work, trade union law, and employment rights enforcement.

With far-reaching consequences for recruitment, retention, and workplace policies, businesses must start adapting now.