Latest changes to the Employment Rights Bill – and how they could affect you

Wednesday March 5, 2025

Following the conclusion of five government consultations, a number of amendments have been proposed. These will go to report stage and third reading in the House of Commons next week.

These changes could affect your business in various ways, including the need for additional budgeting and changes to policies and procedures.

We will continue keep you updated of these changes as they make their way through parliament and are ready to support you when the Employment Rights Bill begins being implemented.

Zero Hour changes extended to Agency staff

The proposed changes to how zero-hour contracts work – which includes the offer of guaranteed hours at the end of a reference period, the right to reasonable notice of changes in shifts and the right to payment for cancelled or curtailed shifts – is to be extended to agency workers.

The government has confirmed it will table this amendment to include a framework for the extension of these measures, however how they will work is as yet unclear. This follows a consultation on the implementation of the ban on ‘exploitative’ zero-hour contracts. It has also been confirmed that the responsibility to offer guaranteed hours to qualifying agency workers will fall on the end hirer.

The right to switch off is a no-go

One change that will not be implemented is the ‘right to switch off’, which the government has dropped from its plans.

The right to switch off would have made it prohibited for businesses to contact employees outside of their standard working hours. Whilst the government have not ruled it out in the future, it will not be included in this initial Bill.

Changes to parental bereavement leave

An amendment that is being carried through is the expansion of two weeks’ bereavement leave to couples who suffer a miscarriage before 24 weeks.

This is already in place for miscarriages that occur after 24 weeks gestation, however this amendment would apply the right to leave for the entire pregnancy period. Though this is something many organisations already offer, it will now become compulsory.

Trade union changes

Various changes to the legislative frameworks in which trade unions operate have been proposed in these amendments.  This includes lowering the notice period for staging action, giving the government power to lower the threshold at which employees can ballot for union recognition and increasing the length of time before a mandate for industrial action expires.

Overall, these changes will make it easier for employees to join unions, to organise and to take part in industrial action.

Strengthening Statutory Sick Pay (SSP)

The government has already announced that statutory sick pay will become available to employees from day one and had previously indicated that they wished to make this available to those on the lowest pay.

They have now suggested that low paid employees should receive either 80% of their average weekly earnings or the current rate of SSP – whichever is lowest.

Information on changes to penalisation of ‘fire and rehire’

The government is also proposing changes to the protective Awards for failure to consult during collective redundancies and as a way of penalising companies that engage in the ‘fire and rehire’ practice.

They have doubled the maximum period of the protective award from 90 days to 180. The protective award is pay due to any employee who has been affected, and it must be full pay.

Collective redundancies are for more than 20 people, and additional rules apply including a 30-day consultation period and Government form to complete. We will always be available to help business owners with this.

The HR Dept can help you through these changes

These changes will almost certainly have an impact on your business, and it’s a good idea to start futureproofing now.

Get in touch with us to see how we can help.

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