What’s missing from the Employment Rights Bill?

Sir Keir Starmer will be breathing a sigh of relief today. The Prime Minister has hit its target of unveiling “landmark reforms” under the Employment Rights Bill in his first 100 days.

Business Secretary Jonathan Reynolds said the new legislation will “give the world of work a much needed upgrade, boosting pay and productivity,” adding “the best employers know that employees are more productive when they are happy at work.”

Protections for those on maternity leave and earning Statutory Sick Pay (SSP) have been announced as expected. But some areas remain unaddressed, dampening celebrations.

Labour made many pledges as part of its “new deal for working people”. Of these, 30 have now been pushed down the line into a Next Steps document. Below, we explain what the biggest gaps are, as well as when (or even if) the shelved promises will see the light of day.

1. Wrong to Switch Off

What they had said: One of the biggest shocks from the Bill has been the absence of rules on the right to disconnect from work. Labour’s Plan to Make Work Pay stated that “we will bring in the right to switch off, so working from home does not become homes turning into 24/7 offices.”

Specifically, the right to switch off would grant employees powers to ignore work calls, texts, or emails (within reason) if they are sent outside of their contracted work hours. We’ve some catching up to do – countries such as Australia, France, Portugal, and Italy have introduced similar laws in recent years.

What’s actually happening: Concerns over the business implications of such guidance mean the government appears to have lost its nerve. The right to switch off will now be subject to a consultation, which means it could be a while before workers can switch off their phones at the hotel bar.

2. Pay discrimination delay

What they had said: Back in June, the Labour Party vowed to make Ethnicity Pay Gap reporting mandatory for all large businesses when it came to power. The mean UK Ethnicity Pay Gap stood at 19.04% in March 2024. Firms would also need to report on their Disability Pay Gap.

What’s actually happening: These changes are set to be introduced in a separate draft Equality (Race and Disparity) Bill. By being left out of the Employment Rights Bill, though, the measures will be subject to separate scrutiny. It could be as late as 2026 that the rules are applied to workplaces.

3. Plans paused for single worker status

What they had said: ‘Worker’ has a broad definition in the UK. It can refer to those on casual or zero-hour contracts, agency staff, and the self-employed. Labour planned to introduce one, single worker status, meaning someone can either be an employee or self-employed. This would give workers a clearer picture of where they sit and what protections they have. As the UK shifts towards a gig economy, there is an urgent need for clarification.

What’s actually happening: Despite the urgency, this issue has been omitted from the Employment Rights Bill. In August 2024, approximately 1.03 million people were on zero hours contracts in the UK. Perhaps wary of the impact that a two-tier employment framework could have on workers, Labour sources have reportedly said this needs a longer consultation period to get right.

4. Keeping mum on parental reform

What they had said: UK parental leave is a mess. Other countries leap ahead with pay and leave allowance, yet we consistently rank among the worst performers for parental benefits. Back in June, Labour pledged to “review the parental leave system so that it best supports working families.”

What’s actually happening: New mums will now be able to access Statutory Maternity Pay (SMP) from day one as a result of the Bill. On top of this, paternity leave will also be a day one right for fathers. According to analysts, this change will enable an extra 30,000 new dads or partners to qualify for time off work to care for their child.

But, expectant parents hoping for revolutionary changes will need to wait, as the longer promised review into parental leave is expected to be carried out next year.

When will the new changes come into effect?

We’ve highlighted gaps in the Employment Rights Bill, but there is still plenty for HR leaders to sink their teeth into, including sick pay reform and protections from unfair dismissal.

Delays to much-needed reforms, such as a single worker status, will frustrate employers, but it’s important to remember these are big changes. The promised consultation should ensure there is no ill impact on businesses, which will ultimately protect workers in the long-term.

Moreover, much of the Bill will take more than two years to consult on, which means it could be a while before workers see the benefits. Employers unprepared for the changes have been warned not to be caught napping, however.

“The key is not to wait”, says Stephen Simpson, Content Manager for Employment Law and Compliance at Brightmine. “Employers must act now before the legislation comes into force.

“Our advice is to conduct an audit of your current policies and processes and ensure that all managers are trained in how to effectively manage the performance of employees. This will ensure that when the law changes, the organisation is best placed to avoid any challenges.“