The Employment Rights Bill revisited – Where are we now?
23 Apr 2025
You’ll know that we’ve spent plenty of time discussing the Employment Rights Bill over the past six months or so.
Quite right too.
As the biggest piece of legislation affecting employment law in a generation, there’s no workplace in the country which won’t be impacted by the changes the Government is proposing.
But there’s been some important movement since we last discussed the bill and we have reached something of a pivotal moment.
The Government has introduced a series of amendments to the bill in parliament, giving us a much clearer picture of the direction of travel and the impact of the consultation period.
These changes, which address critical areas such as Statutory Sick Pay (SSP), agency workers’ rights, and collective redundancies, are set to redefine the employment landscape
Why These Amendments Matter
The proposed reforms aim to enhance workers’ rights and promote fairer workplace practices.
For instance, the extension of SSP to all workers, including those on low wages, ensures that up to 1.3 million more individuals will have access to financial support during illness.
This change, coupled with the provision of SSP from the first day of sickness absence, is designed to encourage employees to prioritise their health, reducing long-term absences and fostering a healthier workforce.
Agency workers stand to benefit significantly as well. The introduction of guaranteed hours contracts, reasonable notice for shift changes, and compensation for cancelled shifts addresses long-standing issues of job insecurity.
These measures not only protect workers but also enhance trust and morale, which are critical for productivity.
The amendments also tackle contentious practices like “fire and rehire” by increasing the maximum protective award period from 90 to 180 days. This sends a strong message about the importance of ethical employment practices and the need for businesses to engage in fair negotiations during collective redundancies.
What Companies Should Do Now
Review Policies and Contracts: Businesses should audit their existing employment contracts and policies to ensure compliance with the proposed changes. This includes updating SSP provisions, revising terms for agency workers, and aligning redundancy procedures with the new guidelines.
Engage with Employees: Transparent communication is key. Employers should inform their workforce about the upcoming changes and how these will impact them. Establishing open channels for feedback can also help address concerns and build trust.
Collaborate with Experts: Given the complexity of employment law, seeking expert advice can help businesses navigate the amendments and avoid potential pitfalls.
Foster a Culture of Compliance: Beyond meeting legal requirements, companies should view these changes as an opportunity to strengthen their commitment to fair and ethical employment practices. This can enhance their reputation and attract top talent.
Looking Ahead
While these amendments are still proposals, their potential impact cannot be overstated. For businesses, embracing these changes proactively will not only ensure compliance but also position them as leaders in fostering a positive workplace culture.
As the Employment Rights Bill progresses through Parliament, staying informed and prepared will be crucial. By taking action now, companies can turn these reforms into opportunities for growth and innovation.
