Specialist Lawyers At Iwin Mitchell Call On Businesses To Engage Early In Consultation

The Government has today unveiled the new Employment Rights Bill, introducing significant changes aimed at enhancing workers’ rights and boosting productivity across the UK.

There are 28 separate changes in the draft Bill, with most of them not expected to be implemented before the autumn of 2026. Some of the key announcements are.

• Removal of the two-year qualifying period for unfair dismissal protections, granting workers these rights from their first day on the job. This change is anticipated to benefit nine million workers.
• Day one rights for paternity, parental, and bereavement leave, along with statutory sick pay from the first day of illness.
• Flexible working as the default position where practical, and large employers will be required to create action plans to address gender pay gaps.
• Guaranteed hours contracts for zero-hours workers based on a 12-week reference period, along with compensation for cancelled or shortened shifts.

Measures, such as the right to ‘switch off’ at the end of a working day, are not in the Bill but will be included in a so-called Next Steps document for further consideration and consultation.

Expert Opinion

“The introduction of the Employment Rights Bill marks a pivotal moment for not just workers across the UK, but also businesses.

“It is crucial that organisations engage with the consultation process, as many of these changes will have a significant impact on their relationship with their staff and will affect the legal duties that flow from this. These changes won’t come into effect immediately and we expect there will be a two year lead in for the most significant ones – such as the ‘day one’ right for workers to claim unfair dismissal. Businesses need to think about how these will affect their ability to improve productivity and grow and make sure that their concerns are raised during the consultation process.

“We are committed to supporting businesses in understanding and implementing these changes effectively, fostering a more productive and equitable working environment.”
Elaine Huttley, Head of Employment at Irwin Mitchell 

Business Secretary Jonathan Reynolds said: “Our plan will give the world of work a much-needed upgrade, boosting pay and productivity.

“The best employers know that employees are more productive when they are happy at work. That is why it’s vital to give employers the flexibility they need to grow whilst ending unscrupulous and unfair practices.

“This upgrade to our laws will ensure they are fit for modern life, raise living standards and provide opportunity and security for businesses, workers and communities across the country.”