Major UK Employment Law Reforms

The UK is on the brink of major employment law reforms, with the Employment Rights Bill expected to receive Royal Assent in 2025. This legislation represents one of the most significant overhauls in decades. Here’s a breakdown of the key updates and timelines:

• Minimum service level rules for strikes will be removed.
• Dismissal for participating in industrial action will become automatically unfair, removing the current 12-week limit.
• Trade union reforms:
  • Notice for industrial action reduced to 10 days.
  • Simple majority required for strike votes.
  • Picket supervisors no longer required.
  • Mandates for industrial action extended to 12 months.
  • Ballot and action notices simplified.

• Parental Leave:
  • Paternity and ordinary parental leave become day-one rights.
  • Restrictions on taking paternity leave after shared parental leave removed.
• Statutory Sick Pay (SSP):
  • Paid from day one of illness.
  • Lower earnings limit removed, broadening eligibility.
• Collective Redundancy:
  • Protective award cap doubled from 90 to 180 days’ pay.
• Whistleblowing:
  • Sexual harassment disclosures protected under whistleblowing law.
• Voluntary action plans for:
  • Gender pay gap.
  • Menopause support.
• Fair Work Agency established to enforce rights like holiday pay and SSP.

• Fire and Rehire:
  • Dismissal and re-engagement on worse terms becomes automatically unfair.
• Harassment Protections:
  • Employers must take “all reasonable steps” to prevent sexual harassment.
  • Liability for harassment by third parties (e.g., customers).
  • NDAs preventing disclosure of harassment/discrimination will be voided.
• Tipping:
  • Employers must consult on tipping policies and update them every 3 years.
• Employment Tribunal:
  • Time limits extended to 6 months for all claims.
• Trade Union Rights:
  • New rights for union access, accommodation, and time off for equality reps.
• Industrial Action:
  • Workers protected from detriment, not just dismissal.
• Public Sector Outsourcing:
  • Measures to prevent two-tier employment terms.
• Adult Social Care:
  • New negotiating body introduced.

• Unfair Dismissal:
  • Becomes a day-one right (currently 2 years).
• Pregnancy & Maternity Protections:
  • Stronger safeguards against dismissal.
• Bereavement Leave:
  • Statutory right introduced (details pending).
• Zero-Hours Contracts:
  • Right to request guaranteed hours.
• Cancelled Shifts:
  • Workers entitled to compensation.
• Flexible Working:
  • Employers must justify refusals with clear reasoning.
  • Mandatory Gender Pay Gap & Menopause Plans.
  • Expanded Collective Redundancy Rules.
  • Trade Union Modernisation.
• Umbrella Companies:
  • Brought under agency regulation for enforcement