The stalemate continues: the question of whether qualifying service for unfair dismissal rights should be removed entirely or reduced to six months by the Employment Rights Bill was once again before the House of Commons today, and once again the Government has dug in its heels.
The Government has begun four new consultation exercises on key legal updates contained in the Employment Rights Bill. Despite the Bill still not having received Royal Assent, the Government appear to be keen to push on with defining the shape of the new employment rights provided for in it.
The Government has begun four new consultation exercises on key legal updates contained in the Employment Rights Bill. Despite the Bill still not having received Royal Assent, the Government appear to be keen to push on with defining the shape of the new employment rights provided for in it.
Peninsula Team Peninsula Team
Employment Rights Act
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After first being unveiled back in October 2024, the Bill outlined a long list of employment law changes, as part of the government’s major overhaul.
And from changes in sick pay entitlement to extending new rights to agency staff, here’s a quick roundup of the key proposed amendments we know so far.
Note: these are proposals only and haven’t actually been passed. However if they were to be approved, this would mean…
The lowest paid workers will get statutory sick pay for the first time ever
1.3 million people who previously weren’t eligible for statutory sick pay could be for the first time under new proposals.
Currently, the lowest earners are not eligible to receive sick pay. The Lower Earnings Limit is set at £123 a week (this will increase to £125 in April 2025). So if someone were to earn £100 a week and needed to be off sick for a full week, they wouldn’t receive pay for that time.
But under the new government proposal, a person would be entitled to receive 80% of their wage if they earn less than the rate of SSP (currently £116.75 per week) for the time they’re off sick. In practice, this would mean someone who earns £100 a week could get £80 a week in sick pay.
This proposal also gives everyone the right to sick pay from day one of being absent, cutting out the three-day waiting period.
What will HR need to think about?
If this proposal goes ahead, it will be absolutely vital to make sure you have a robust absence management process in place.
If more people are entitled to sick pay and from day one of being off work, the cost of a single absence could increase rapidly.
So to follow best HR practice, it’s important to have a formal process in place for reporting and recording sickness absences. This will put you in the best position to manage absences and your overall costs in the long-run.
It’s important to make sure your workers are following the right reporting procedure when they’re too sick to work. Plus, you should be prepared to hold return to work interviews and welfare meetings where appropriate.
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You would have extra responsibilities when it comes to recording staff holidays
The government is also proposing that you should have extra responsibility when it comes to showing you’re following the rules for annual leave entitlement.
These rules form part of the Working Time regulations.
What will HR need to think about?
You’ll need to consider your current methods for recording and managing staff holidays. Again, this is where HR software can be a time-saving, stress-reducing benefit.
HR software allows you to report, approve and manage staff holidays on the go – all in one secure place.
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The new rules around zero-hour contracts would also apply to agency workers
Previously, the government proposed that zero hour workers should have a right to a certain amount of notice if their shift needs to be cancelled. They should also have a right to a guaranteed hours contract that reflects the hours they regularly work.
This is in a bid to put a stop to “exploitative” working practices.
It’s now being proposed that this right should also apply to agency workers.
What will HR need to think about?
If you employ agency staff, you’ll need to consider whether they have the right type of contract or whether you need to issue them with a new one.
Making sure your staff contracts are up to date and have all the right information is essential.
If a person can show their contract is missing key information, isn’t legally up to date or they have the wrong contract for their position, a tribunal could make you pay hefty compensation.
The government would have the right to bring tribunal claims on behalf of workers
There is a new proposal for the Secretary of State to be able to bring tribunal proceedings on behalf of workers.
The proposal is to establish a new Fair Work Agency. This agency would be able to start a claim for a worker who has a claim but isn’t going to raise it themselves. The agency would would also be able to provide legal assistance, enforce payment of statutory payments or representation for a worker bringing a claim.
What will HR need to think about?
If you’re ever in a position where an employee is bringing a claim against you, you need to be clear about your rights.
With legal support, you can have an HR representative manage the process for you – from the initial stages of a workplace dispute to the very end.
This can help reduce the stress of taking on the burden of a claim yourself. It can also reduce your risk of taking a wrong step when a legal expert is there to offer advice and has your best interests at the forefront.
Employees would gain the right to bereavement leave after a miscarriage
The government has confirmed that while they haven't tabled their own amendment for miscarriage leave, they will be backing the amendment put forward by MP Sarah Owen.
Under this proposal, employees would be given the right to take statutory bereavement leave if they (or their partner) experience a pregnancy loss before 24 weeks.
Currently, employees are only eligible for parental bereavement leave if their child dies under the age of 18 or is stillborn after the 24th week of pregnancy.
What will HR need to think about?
You would need to update any existing policies you have around leave entitlements to reflect this new right and communicate this to employees.
Employees would gain day-one right to unfair dismissal
It’s been proposed that employees will have the right to raise an unfair dismissal claim from the moment they begin their employment.
However, the House of Lords have rebutted this, and are adamant with their amendment that there should be a six-month qualifying service.
This has meant that the Bill will go back to the House of Common for further debate—along with other issues.
Given that the Bill contains 173 statutory instruments, there are a plethora of permutations to be considered. Much of this, disconcertingly, means uncertainty for businesses.
What will HR need to think about?
In the event that unfair dismissal became a day-one right, 9 million employees will obtain this right.
Conversely, just 6 million people will qualify for the right to unfair dismissal if the House of Lords continue to resist the proposals.
If it becomes a day-one right, HR should consider measures to mitigate the likelihood of such claims—else they could be faced with resource-draining tribunals.
Need a recap of what's included in the Employment Rights Bill?
Check out the full list of legal changes here:
Key Concerns Raised About the Employment Rights Bill
68% of respondents believe the Employment Rights Bill will negatively impact businesses in the UK, while only 10% see it as having a positive effect. For a detailed analysis of the findings, explore our full report: Employment Rights Bill Survey Reveals UK Business Concerns.
Got a question for an adviser?
While these proposals may not be set in stone, it’s important to stay on top of employment law updates at whatever stage they may be.
Your experts at Peninsula will be making sure you have the most up to date information and documentation at your fingertips.
But even if you’re not yet benefiting from unlimited HR and Health & Safety support, you can still speak to one of our advisers free of charge. Got a query about your processes or paperwork? Tap below to book a free consultation today:
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