Copy article

Employment Rights Bill: "Fire and fire culture will undoubtedly change"

ended 10. October 2024

Major reform of workers' rights is set to provide millions of employees with the ability to claim unpaid parental leave and gain stronger protections against unfair dismissal from their first day on the job.

The government unveiled the details of its Employment Rights Bill, which aims to eliminate exploitative practices, such as the use of zero-hours contracts and "fire and rehire" tactics, which have been a growing concern for workers.

Deputy Prime Minister Angela Rayner described the reform as the "biggest upgrade to workers' rights in a generation."

The bill includes 28 separate measures, from ending exploitative zero hours contracts and fire and rehire practices to establishing day one rights for paternity, parental and bereavement leave for millions of workers. Statutory sick pay will also be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in.

Most of the measures will be subject to further consultation and are not expected to take effect until autumn 2026.

9 responses from the Newspage community

Copy all

Copy

Editor
Simon BridglandVerified
Director at Charwin Private Clients
The changes being made will leave employers in a difficult position, the fear of hiring the wrong candidate will take a more prominent position and greater emphasis on referencing for more detail on candidates to the point of ridiculous questions becoming common sense to need to know. I feel it will end up getting smaller firms into litigation which they can ill afford, especially if they don’t have HR departments keeping them on the right path.
Copy

Editor
Kate UnderwoodVerified
Managing Director / HR Director at Kate Underwood HR and Training
The Employment Rights Bill offers crucial protections for workers but could place significant pressure on small businesses. While ending zero-hours contracts and introducing day-one rights for parental leave are positive moves, these changes come with potential challenges for SMEs.

For example, removing the lower earnings limit for statutory sick pay may benefit employees, but without financial support for small businesses, the increased costs could strain already tight budgets.

Additionally, stronger day-one protections may lead to a surge in malicious claims, clogging up Employment Tribunals and making the hiring and dismissal process riskier for small employers. The government needs to strike a balance, ensuring that while workers' rights are safeguarded, small businesses aren’t overwhelmed by new costs and legal risks.
Copy

Editor
Chris BarryVerified
Director at Thomas Legal
Although much of the bill is inspired by Europe and widely adopted across many European countries, many parts are in consultation in the UK with a view of a 2026 implementation.

As an SME, we have taken the early and proactive measure to draft a right to disconnect policy which we feel will help promote a healthy work life balance along with supporting our employee’s mental wellbeing.

It’s all about choice for employees and this will depend on where they are on their career journey and their personal life but the key takeaway is employees can now choose whether they work longer than contracted hours rather than feeling under pressure by culture or peers
Copy

Premium
Daniel WiltshireVerified
Actuary & IFA at Wiltshire Wealth
Who in their right mind would start a business now? Hiring staff is already expensive and risky enough, and this bill will drain what's left of the UK's entrepreneurial zeal. Productivity is at rock bottom, and growth has stalled, with the bond market watching on nervously. For a government that was supposed to be 'pro-business,' they’re doing a remarkably good impression of the Corbynite shadow cabinet they only recently purged.
Copy

Sam KirkVerified
Managing Director at J-Flex Rubber Products
The new Employment Rights Bill has come at a challenging time for businesses. Even before this legislation, many SMEs were struggling with recruitment due to rising costs, increased competition for talent, and economic uncertainty. This new bill, while well-intentioned, adds another layer of complexity and compliance. For small businesses operating with limited resources, these changes could further discourage hiring and potentially delay growth plans.

I also find it somewhat ironic that this policy has been introduced by politicians who can hire/fire without any consequence whatsoever. One rule for them, another for us business owners.
Copy

Keith BuddenVerified
Managing Director at Ensurety
I think for small businesses like ourselves it is a real mixed bag. Some things, like sensible arrangements for bereavment leave, any good, responsible employer has in place already.

Of the new measures, banning fire-and-rehire is I think a good thing, a secure workforce is a happy, productive workforce. Full salary sick pay from day 1 and rights to paternity leave etc from day 1 will have implications for small business a) there is an obvious cash impact on the business and I also think that it will increase the cost of recruitment since I suspect there will be more desire for thorough health checks on candidates prior to employment. This could also lead to unintended discrimination against those with chronic illness which is ironically one of those demographic groups the Government says it wants to help back into work!
Copy

Chris Hayes0
Employment law Partner and Head of Innovation at HM3 Legal
Employers are still grappling with the aftershocks of the pandemic's impact on the workplace, and now they're facing another wave of significant changes. For many small businesses, the cost and time required to adapt could prove challenging, pushing them toward outsourcing roles traditionally handled in-house by employees. Larger companies, with the resources to manage these shifts, may seize the opportunity to acquire smaller businesses, appealing to SME owners who might be feeling overwhelmed by yet another major disruption.
Copy

Adam Myers0
Head Of HR Consulting at Stellamar
The Employment Rights Bill is overdue in my view. Whilst we have had robust employment law in the UK for years, so many businesses feel they can skate around it and that it doesn't really apply to them or their business, which I believe had led to the problem which the government appear to be trying to fix. For too long have businesses relied on 'probationary periods' or 'lack of employment rights' to make unfair dismissals, so this protection should be positive for workers.

It is undoubtely going to make SME's think twice about making new hires, especially with so much buzz around AI taking roles from people. On the flip side, it may encourage more people to feel protected at work, and therefore want to join small growing businesses without the percieved risk, which I think will have a positive impact on the talent pool.
Copy

Rebecca Seeley Harris0
CEO at Re Legal Consulting
Talking as an expert and business owner, I think the devil will be in the detail. There are always repercussions around the employment status border, whether someone is employed or self-employed. The government has promised a consultation on single worker status and this will see those people who are currently workers get day-one rights. This may also push more people into unregulated umbrella companies. It remains to be seen how much this will affect small businesses but, the hire and fire culture will undoubtedly change.