Employment Rights Bill: what is it and how will it affect you?

Rumours are abound as to what will be discussed in this month’s Autumn statement. But the general consensus is that it will promise plenty for UK workers. Reforms of sick pay and maternity leave are due to be announced to give employees greater rights while at work.

The package of reforms has been dubbed the Employment Rights Bill. It will be formally announced on Thursday. But as this is an official announcement from the UK government, virtually all details of the plans have been reported by The Times over the weekend.

Unions have welcomed the Bill, arguing it will help to deliver better quality jobs for the UK workforce. However some Conservative MPs, such as Kemi Badenoch, have separately expressed concerns that business regulation, such as maternity leave, has “gone too far”.

Seven million people are reportedly poised to benefit from the changes, representing around  a fifth of the current working population in the UK. Below, we break down everything you need to know about the bill, including how it could impact your job.

What will be in the Employment Rights Bill?

Keir Starmer’s government will unveil the new Bill and its full contents on Thursday. However, The Times story, published on Saturday, provides a convincing overview of what we can expect to see in the upcoming legislation.

Alongside high-profile reforms to maternity pay, the Bill will mean that all workers will be entitled to Statutory Sick Pay (SSP). Sickness absence is rising in the UK, and many blame low sick pay for what’s been dubbed our ‘sick note culture’.

Here’s a list of the current laws, and how they are expected to change after Thursday’s Bill:

Sick pay for all

SSP is currently £116.75 a week for all employees who earn over £123 a week. Staff are entitled to be paid SSP after the third day of being ill from work. Yet around one million workers currently don’t earn enough to claim this amount.

The government plans to introduce legislation that will entitle all workers to sick pay from their first day of illness. However, the rate of sick pay for those who earn below the current threshold is likely to be lower than the standard rate of £116.75 per week.

Maternity pay from day one

All new mothers, including those who are adopting, are entitled to 52 weeks of leave. But they must have been employed for 26 weeks and earn over £123 a week to qualify for maternity pay (currently 90% of their salary for six weeks, then £184 a week for 33).

The new laws will reportedly mean all women employees will be able to give notice for maternity leave on the first day of the job, without risk of dismissal. But zero hours or agency workers who earn under £123 per week, on average, may still not qualify for SSP.

Parental leave

Parents who have worked at a company for at least one year have the right to unpaid time off work when they need to look after their children, known as parental leave. They can take up to 18 weeks in total (up to four weeks per year) until the child turns 18.

In July the King’s Speech, which covered the Employment Rights Bill, declared this would become a day one right. We will have to wait until Thursday for this to be confirmed.

Some-hours contracts

Last month, the government dropped its proposed Predictable Working Bill. The Act, which was due to become law this autumn, awarded those on “exploitative” zero-hours or temporary contracts the right to request more predictable working hours.

Rather than ditching the legislation altogether, the government appears to have folded it into the Employment Rights Bill, with a model that will reportedly promise workers the right to a contract that reflects the number of hours they regularly work.

Six month probation cap

Today, bosses can legally keep staff members on probation for up to two years. Being on probation means they can be sacked at any point without businesses facing unfair dismissal.

It is expected that the bill will make it illegal to place someone on probation for more than six months. Bosses will also have to arrange a formal meeting to end a person’s probation, rather than just ending their contract without proper reasoning.

What WON’T be in the Employment Rights Bill?

According to The Times, one surprising area that will be missing from the upcoming legislation is the right to switch off while not on the clock.

There are currently no rules on contacting staff out of hours (for example on evenings on weekends). Around 54% of employees expect to work while on annual leave thanks to team members sending work-related texts and emails to their sunbeds.

Before Labour won the election, it had teased that it may codify the right to disconnect into law. The proposed legislation would ban workers from being contacted on their time off, similar to countries like Australia and France.

However, critics warned that firms with atypical operating hours may choose to hire overseas workers or even move abroad if the law came into force, risking UK jobs. Perhaps spooked by these concerns, the government has pressed pause on the plans — for now.

Other regulatory laws planned by Labour, such as mandatory Ethnicity Pay Gap reporting, is also expected to be part of the Bill, though this was not mentioned by The Times.

When will the Employment Rights Bill be introduced?

During its election campaign, Labour declared it would introduce the “once-in-a-generation” Employment Rights Bill in its first 100 days of office.

That said, the proposals will only be published in draft form. The process of a bill actually becoming law in the UK involves several stages and can be a lengthy process, meaning it could be years before the above reforms are seen in the workplace.

Elements of the Bill will likely cause concern among businesses and debate among MPs, prolonging their application. Others could be passed later through secondary legislation (where the government makes a small change without having to propose a new Bill).

Rome wasn’t built in a day. While the Employment Rights Bill will be welcomed by workers, there are still questions as to how it will impact employers. As one business leader told The Financial Times on Saturday, “I don’t think [we’ll be] seeing a lot of this before 2026”.