The government has unveiled its Employment Rights Bill, marking the most significant overhaul of workers’ rights in a generation. The new legislation aims to end exploitative zero-hours contracts, ban controversial fire and rehire practices, and ensure employees have essential workplace protections from their first day on the job.
Under the new Bill, employees will gain basic rights from day one, including paternity and parental leave, bereavement leave, and protection against unfair dismissal.
The Bill will also establish a statutory probation period for new hires, providing a fair assessment of their suitability for the role while ensuring they enjoy these rights immediately. The proposed probation period will be subject to consultation, with the government’s preference set at nine months.
Our new Bill and measures will:
- Give protection against unfair dismissal from day one, while allowing employers to operate probation periods
- Establish parental and bereavement leave from day one
- End exploitative zero hour contracts
- End unscrupulous practices of fire and rehire and fire and replace
- Make flexible working the norm where practical
- Deliver stronger dismissal protections for pregnant women and new mothers
- Establish a new Fair Work Agency with new powers to enforce holiday pay
- Strengthen statutory sick pay
The legislation addresses longstanding issues with unfair employment practices. While workers can choose to remain on zero-hours contracts, those working regular hours will now have the right to a guaranteed hours contract. Additionally, the Bill will close loopholes that allow unscrupulous employers to engage in fire and rehire practices, where employees are dismissed and rehired under less favourable terms.
Flexible working will become the default option where practical, and large employers will be required to implement gender equality action plans, including support for employees going through the menopause. Protections for pregnant workers and those returning from maternity leave will also be strengthened.
A new Fair Work Agency will be established to oversee the enforcement of workplace rights, such as holiday pay, and to assist employers in navigating the new regulations. The Bill aims to boost pay and productivity while creating a fairer and more flexible work environment, aligning employment laws with the needs of a modern economy.