The UK Employment Bill: A Landmark Reform in Workers’ Rights and Employer Responsibilities
The UK Employment Bill, announced as a transformative piece of legislation, is poised to reshape the employment landscape by strengthening workers’ rights and redefining employer responsibilities. First anticipated in the 2019 Queen’s Speech, this long-awaited legislation represents the most significant overhaul of employment law in decades. Below is a closer look at the bill’s key provisions, its implications, and what it means for the future of work in the UK.
Key Provisions of the Employment Bill
Day-One Employment Rights: The bill proposes extending protection from unfair dismissal to begin from an employee’s first day of employment. This measure is intended to ensure that new employees are not terminated without just cause, enhancing job security from the outset.
Flexible Working as Default: A core feature of the bill is the shift to make flexible working the default. Employees will be entitled to request flexible working arrangements—such as remote work or adjusted hours—from day one of employment. This change supports a modern workforce that increasingly values work-life balance.
Enhanced Redundancy Protections for New Parents: Pregnant employees and new parents will benefit from extended protection against redundancy. This provision seeks to protect job security during critical life events such as pregnancy, maternity, and parental leave.
Statutory Leave for Carers: For the first time, employees who are unpaid carers will have the legal right to one week’s unpaid leave per year. This acknowledges the essential role of carers and offers necessary support for balancing work and caregiving duties.
Fair Distribution of Tips and Service Charges: Employers will be legally required to pass 100% of tips and service charges directly to staff. This addresses ongoing concerns in the hospitality sector and aims to ensure fair remuneration for workers.
Clarification of Worker Status: The bill seeks to provide legal clarity regarding employment status, distinguishing between employees, workers, and self-employed individuals. This reform is especially critical in the gig economy, where the ambiguity has led to inconsistent rights and protections.
Regulation of Zero-Hours Contracts: New measures will regulate the use of zero-hours contracts, including granting workers the right to request a more predictable and stable work pattern after 26 weeks of service. This provision aims to improve job security for those in precarious employment.
Ending ‘Fire and Rehire’ Practices: The bill proposes replacing the previous statutory code on ‘fire and rehire’—which has been criticised as inadequate—with robust legal protections. The goal is to prevent employers from pressuring employees into accepting less favourable terms under the threat of dismissal.
Draft Equality (Race and Disability) Bill
To complement the Employment Bill, the Draft Equality (Race and Disability) Bill underscores the government’s commitment to workplace equality. It aims to:
- Strengthen protections against race and disability discrimination
- Address systemic inequalities
- Promote diversity and inclusion across all employment sectors
A notable measure includes mandatory ethnicity and disability pay gap reporting for employers with more than 250 employees—mirroring the existing gender pay gap reporting requirement. This change seeks to drive transparency and accountability in pay equity.
Implications for Employers and Employees
For Employers: The Employment Bill requires employers to review and update their HR policies, contracts, and workplace practices. Key areas of focus include:
- Implementing flexible working processes
- Ensuring redundancy protections for vulnerable employees
- Adopting fair tip distribution systems
- Preparing for compliance with new reporting requirements
Proactive planning and legal consultation will be essential to remain compliant and avoid future disputes.
For Employees: Workers can expect a more secure and equitable work environment. The bill empowers employees with:
- Immediate protection from unfair dismissal
- More flexible working options
- Clarity on employment status
- Enhanced protections during vulnerable life stages
Timeline for Implementation
The new Labour government is expected to introduce the Employment Bill to Parliament within the first 100 days of taking office. The final draft is anticipated to be laid before Parliament by October 2024, with implementation expected by October 2025 or April 2026.
Conclusion
The UK Employment Bill marks a progressive shift in employment law, designed to reflect the evolving dynamics of the modern workforce. By enhancing flexibility, strengthening protections, and promoting inclusivity, the legislation paves the way for a more just and resilient employment framework.
Employers and HR professionals should begin preparing now to align their policies with these anticipated changes. Employees, on the other hand, can look forward to greater fairness, transparency, and support in the workplace.
Written by Sara Marshall
Associate Partner, Employment Law at Franklins Solicitors LLP
Specialises in settlement agreements, unfair dismissal, redundancy, discrimination (sex, race, disability, sexual orientation), employment tribunal claims, maternity and paternity rights, flexible working, equal pay, bullying, victimisation, and restrictive covenants.
Sara Marshall is an experienced Employment Law Solicitor at Franklins Solicitors LLP, qualified since 2009 with over 27 years of experience. She is a member of the Employment Lawyers Association and advises both employers and employees on a wide range of contentious and non-contentious employment matters.
Sara specialises in settlement agreements, unfair dismissal, redundancy, discrimination, employment tribunal claims, and workplace policies. Known for her practical advice and supportive approach, she helps clients navigate complex employment issues with confidence.
Outside of work, Sara enjoys running, spending time with her family, and walking their dog, Bailey.
