The Employment Rights Bill – A legislative warning not worth ignoring

Some have said that The Employment Rights Bill will introduce one of the biggest shake-ups to the UK workforce in decades.

The legislation was originally introduced in October 2024, and is now progressing through the House of Lords, with Royal Assent anticipated by summer 2025.

As trusted advisors to businesses on both financial and HR matters, we want to ensure that you are fully prepared for the implications of this Bill, which forms a key part of the Government’s Plan to Make Work Pay and its ambition to increase the UK’s employment rate to 80 per cent.

Employers, take note. What the Bill is changing

The Employment Rights Bill represents a wide-ranging reform of the UK employment framework.

Its focus is on strengthening day-one rights, enhancing job security, and modernising workplace practices.

Below is a summary of the key provisions relevant to employers:

Flexible working as the default

Employees will have the statutory right to request flexible working from the first day of employment.

Requests can only be refused for specified business reasons, and employers will be required to provide a written explanation.

Notably, the Bill includes an added expectation of reasonableness in refusals, making it easier for employees to challenge decisions.

Statutory bereavement leave

A new right to bereavement leave is being introduced for all employees from day one of employment.

While parents remain entitled to two weeks of paid leave, other employees will be entitled to one week of unpaid leave following the death of a close family member or dependent.

Paternity and parental leave from day one

The Bill removes existing qualifying periods, giving employees immediate access to paternity and parental leave.

New provisions also allow paternity leave to be taken after a period of shared parental leave, increasing flexibility for families.

Unfair dismissal protection from day one

One of the most substantial changes is the introduction of protection from unfair dismissal from the first day of employment.

However, a statutory probation period, likely to be set at nine months, will apply, during which different rules may govern dismissal.

This is intended to strike a balance between business needs and employee security.

Better protection for pregnant employees

The Bill strengthens protections against dismissal for pregnant employees and those returning from family-related leave.

While the detail will be introduced through secondary legislation, employers should expect increased scrutiny of dismissal decisions affecting this group.

Guaranteed hours contracts and shift notice

Employers will be required to provide contracts that reflect an employee’s usual working hours.

Workers will also be entitled to reasonable notice of shift changes and compensation for short-notice cancellations.

These measures are aimed at improving job stability, particularly for those in insecure or irregular work.

Gender pay and menopause support

Employers with 250 or more staff will be required to publish action plans to address gender pay disparities and introduce workplace support for employees experiencing menopause.

Is your business ready for the Employment Rights Bill?

As you can see, these are not minor tweaks, and employers need to be seriously prepared for the road ahead.

Many of the changes, particularly those introducing day-one rights, will require a fresh look at employment contracts, HR policies and onboarding processes.

From an advisory perspective, we recommend that employers:

• Review employment contracts and staff handbooks to ensure they reflect upcoming statutory requirements.
• Re-evaluate probationary periods and dismissal procedures in light of new unfair dismissal protections.
• Develop or update policies around flexible working, parental leave and bereavement leave.
• Prepare for compliance with shift notification and pay requirements, especially in sectors with irregular work patterns.
• For larger employers, begin planning for gender pay gap action plans and menopause support strategies.

HR support from Monahans

As a firm that integrates accountancy with expert HR advisory services, we are well-placed to help you manage the impact that the Employment Rights Bill will have.

We can support you with contract reviews, HR policy updates, and strategic workforce planning to ensure your business remains compliant and competitive.

If you would like to discuss how the Employment Rights Bill will impact your organisation before it becomes law, please contact our HR advisory team today.

Juliet Mellues