The UK Labour Government’s Employment Rights Bill 2024: What Employers Need to Know

In October 2024, the Labour government introduced the Employment Rights Bill, delivering on its pledge to reform UK employment law within its first 100 days. Framed as part of the “Plan to Make Work Pay”, this Bill is one of the most significant workplace reforms in decades.

While the headlines focus on sweeping change, many measures will be phased in over several years, with the most transformative arriving in 2026–2027. For employers, HR professionals, and SMEs, understanding what’s coming — and when — is key to staying compliant and protecting business performance.

Key Reforms in the Employment Rights Bill

The Bill covers more than 28 areas of employment law. Some of the most impactful reforms include:

• Day-one rights: Parental leave, paternity leave, and statutory sick pay (SSP) from day one.
• Unfair dismissal: Removal of the two-year qualifying period, with day-one unfair dismissal rights expected from 2027.
• Zero-hours contracts: New protections against “exploitative” arrangements and rights to guaranteed hours.
• Workplace harassment: A duty on employers to take proactive steps to prevent harassment.
• Trade union law: Stronger protections for striking workers and simpler union recognition processes.
• Equality & pay transparency: Potential new reporting duties on ethnicity and disability pay gaps.

Employment Rights Bill Timeline

The reforms will be rolled out gradually:

• Autumn 2025 – Royal Assent expected; early changes to union law.
• April 2026 – Day-one parental leave, SSP reform, harassment prevention duties, and creation of the Fair Work Agency.
• October 2026 – Extended harassment protections and new redundancy/consultation rules.
• 2027 onwards – Day-one unfair dismissal rights, guaranteed hours for zero-hours staff, umbrella company regulation, and flexible working expansions.

Note: These dates are subject to consultation outcomes and may shift.

HR Priorities: What Employers Should Focus On

Given the scale of reform, HR teams and business leaders should prioritise early preparation:

🔴 High priority (2025–early 2026)

• Update policies for day-one parental leave and SSP.
• Implement harassment prevention training and reporting systems.
• Refresh industrial relations strategies in line with union law changes.

🟠 Medium priority (2026–2027)

• Prepare for day-one unfair dismissal rights — probation and performance management will be critical.
• Plan for workforce scheduling and guaranteed hours.
• Review flexible working policies for anticipated expansion.

🟢 Longer-term (post-2027)

• Monitor regulation of umbrella companies and extended maternity/pregnancy protections.

What This Means for Employers

The Employment Rights Bill 2024 is the most ambitious overhaul of UK employment law in a generation. While many changes are still years away, forward-thinking businesses will:

• Align HR policies with new entitlements.
• Update payroll systems for SSP changes.
• Train managers on harassment prevention and industrial relations.
• Invest in strategic workforce development to adapt to day-one dismissal rights and zero-hours reforms.

Final Thoughts

The Employment Rights Bill signals a decisive shift in UK employment law, stronger protections for workers, greater responsibility for employers, and more proactive HR management.

Employers who act now by reviewing policies, updating systems, and equipping managers will be best positioned to adapt and maintain compliance.

At Talentnest Solution Ltd, we support organisations with HR consulting, policy design, workforce planning, and employee engagement strategies to stay ahead of change and build resilient, compliant workplaces.

⚖️ Disclaimer

This article is for general information only and does not constitute legal advice. For tailored guidance, consult an employment law specialist.