The UK's New Employment Rights Bill: What Employers and Workers Need to Know

 
19/05/2025
5 min read

In a landmark announcement on October 10, 2024, the UK Government unveiled the Employment Rights Bill, representing the most significant overhaul of workplace protections in over a decade. This transformative legislation aims to provide greater security, transparency, and fairness for millions of workers across the UK—particularly those in insecure or flexible roles.

Whether you're a business owner, HR manager, or employee, understanding this Bill and preparing for the changes is essential. In this article, we’ll break down the key reforms, explain their implications, and highlight how Parachute Law can help you navigate the legal changes.

What Is the Employment Rights Bill?

The Employment Rights Bill (2024) introduces a series of reforms that expand and protect workers' rights. It directly addresses modern labour practices, including zero-hour contracts, gig economy work, and the erosion of traditional employment protections.

The Bill was introduced as part of the Government’s broader effort to ensure that “hard work pays” and that no employee is left vulnerable due to outdated laws or exploitative contract terms.

Key Changes Introduced by the Bill

1. Ban on Zero-Hour Contracts

One of the most high-profile reforms is the proposed ban on zero-hour contracts, which have long been criticised for offering no guaranteed work hours and minimal job security.

Impact on Employers:
Employers will be required to offer workers a guaranteed minimum number of hours. Businesses relying on flexible staffing will need to revisit their scheduling and payroll models.

Impact on Workers:
Employees will gain more financial stability, enabling them to plan their lives with more certainty and access benefits like mortgages and rentals.

2. Day-One Rights to Unfair Dismissal Protection

Currently, employees need two years of continuous service before qualifying for unfair dismissal protection. The Bill proposes extending this protection to all employees from day one.

Impact on Employers:
Recruitment and dismissal policies will need to be reviewed to ensure proper procedures are followed from the outset.

Impact on Workers:
Employees will be less vulnerable to arbitrary termination, particularly during probationary periods.

3. Stronger Sick Pay Provisions

The Bill pledges to expand access to statutory sick pay (SSP) and remove the three-day waiting period for eligibility.

Impact on Employers:
Payroll systems and absence management policies will need updates. Some businesses may also face increased costs due to extended sick pay coverage.

Impact on Workers:
Low-income and gig economy workers will benefit most, as they’ll no longer need to choose between health and income.

4. Right to Predictable Working Hours

To address issues with unpredictable scheduling, the Bill grants employees the right to request more stable working patterns after 26 weeks of employment.

Impact on Employers:
This adds an administrative layer, requiring employers to respond to formal working pattern requests, similar to flexible working applications.

Impact on Workers:
This ensures that part-time and shift workers can better manage childcare, second jobs, or educational pursuits.

5. Single Enforcement Body

A new Single Enforcement Body will consolidate powers currently held by various agencies (like HMRC and the Gangmasters and Labour Abuse Authority). This body will enforce rights relating to:

  • National Minimum Wage
     
  • Holiday pay
     
  • Sick pay
     
  • Employment contracts
     

Impact on Employers:
Increased oversight and enforcement mean non-compliance is riskier than ever. Employers must ensure all employment practices and documentation are up to date.

Impact on Workers:
It will be easier to report mistreatment and receive compensation for infringed rights.

Additional Protections in the Bill

The Government has also announced plans for future regulations under this Bill that may include:

  • Strengthening whistleblower protections
     
  • Enhancing redundancy protections, especially for new parents
     
  • Upholding rights for gig economy workers, such as delivery drivers and ride-hailing app contractors
     

These ongoing developments signal the Government's commitment to fairer work conditions across all sectors.

Timeline and Implementation

While the Bill has been introduced, many of its provisions will require secondary legislation to take effect. Some changes may be implemented as early as April 2025, while others will be phased in over the following 12–24 months.

Businesses should not wait for the last minute. Proactive compliance will protect you from legal risk and improve employee morale and retention.

What Should Employers Do Now?

If you're a business owner or HR professional, here’s how you can prepare:

1. Audit Your Contracts

Review all existing employment contracts, particularly for casual and part-time workers. Zero-hour agreements will need to be rewritten or restructured.

2. Review Dismissal Policies

With day-one rights in play, it’s crucial to ensure your disciplinary and grievance procedures are legally sound and clearly communicated from the start of employment.

3. Update Sick Pay Policies

Assess how changes to SSP will impact your payroll budget and HR systems. Employees will expect timely and accurate payments.

4. Create Predictable Scheduling Procedures

Be ready to handle formal requests for predictable working hours. This may require updating shift management software and staff handbooks.

5. Train Managers and HR Staff

Ensure your managers understand the legal changes and are equipped to apply them fairly and consistently.

How Parachute Law Can Help

At Parachute Law, we help small and medium-sized businesses stay compliant, reduce liability, and build better workplaces. We offer:

  • Bespoke employment contract drafting and reviews
     
  • Policy creation for sick leave, scheduling, and dismissals
     
  • Support for handling employee disputes and HR queries
     
  • Employment law training for staff and HR teams
     
  • Guidance on upcoming secondary legislation and case law
     

Let our experienced team help you navigate these changes with confidence.

Book a consultation today: www.parachutelaw.co.uk/contact-us Or email us at enquiries@parachutelaw.co.uk

What Employees Should Know

If you're a worker wondering how the Employment Rights Bill affects you:

  • You will likely gain better job security and access to more predictable hours
     
  • You may be eligible for full sick pay from day one
     
  • You’ll have stronger protections if you’re dismissed, even during probation
     
  • You can report employment abuses more easily with the help of the new enforcement body
     

If you believe your rights are being violated or you're unsure what these changes mean for your situation, we can help. Our team provides clear legal advice and, when needed, can assist you with filing a claim or negotiating with your employer.

Final Thoughts

The Employment Rights Bill marks a major step toward creating a fairer labour market in the UK. While these changes will bring challenges for some businesses, they also present an opportunity to build trust and engagement in the workplace.

At Parachute Law, we’re here to help you every step of the way—whether you're an employer adjusting to new obligations or an employee seeking to understand your evolving rights.

Don’t Wait Until It’s Too Late

Get ahead of the Employment Rights Bill today.

Book a free consultation with Parachute Law and ensure your contracts, policies, and procedures are up to date.