The UK’s Employment Rights Bill marks the biggest shift in employment law in 100 years, and both employers and employees must be aware of the significant changes it brings.
We’ve condensed the 158-page document into the key points on what you need to know.
What the Bill Means for Employers
New Compliance Obligations
Employers must now update their employment contracts, policies, and practices to meet the enhanced worker rights outlined in the bill. With the introduction of day-one entitlements, all employees now have the right to sick pay, parental leave, and protection from unfair dismissal as soon as they begin their role. This change means businesses will need to be prepared to offer these benefits from the first day of employment, ensuring onboarding procedures reflect the new rules.
Flexible Working as a Default
Employers must now provide flexible working options to employees, with the assumption that roles can be flexible unless there is a solid business reason not to. This means that employers must approach recruitment and workforce planning with flexibility in mind, offering more dynamic working arrangements to attract and retain top talent. As a recruitment agency, we expect this to lead to a more diverse pool of candidates, particularly those seeking better work-life balance.
Zero-Hours Contracts and Job Security
While zero-hours contracts are still allowed, the bill introduces a significant change: employees working regular hours over a set period can now request to switch to guaranteed hours. Employers must seriously consider these requests or risk facing legal challenges. This change promotes greater job security for employees but requires employers to carefully plan their staffing needs and contractual obligations.
Ban on Fire and Rehire
One of the most impactful reforms is the ban on fire-and-rehire tactics, where employers previously could dismiss staff and rehire them on less favourable terms. Under the new legislation, employers must engage in proper consultations with employees during any contractual changes. This ensures fairer treatment of workers but requires businesses to manage restructures with greater transparency and care.
Enforcement and Accountability
The creation of the Fair Work Agency adds a new layer of oversight, helping to ensure that businesses comply with the updated regulations, including correct holiday pay calculations and worker entitlements. Employers will need to be more vigilant in adhering to employment laws to avoid penalties.
How Employers Can Prepare
Employers need to be proactive in preparing for these changes. Here are some key steps you can take:
Review and Update Contracts:
Ensure that all employee contracts reflect the new rights and entitlements, particularly for new starters and zero-hours workers.
Embrace Flexibility:
Develop clear policies around flexible working and establish a framework for handling flexible working requests fairly and consistently.
Consult Properly:
Implement robust consultation processes when making any changes to employment terms, to stay compliant with the fire-and-rehire ban.
Stay Informed:
Monitor your compliance with the new legislation, especially around sick pay, holiday entitlements, and flexible working policies, to avoid penalties from the Fair Work Agency.
What This Means for Recruitment
At Eligo Recruitment, we expect the Employment Rights Bill to reshape the recruitment landscape. Employers that adapt quickly to the changes and offer enhanced job security, flexibility, and fair treatment will be better positioned to attract top talent.
As recruitment experts, we’re here to support you in navigating these changes, helping you remain compliant while building a motivated, engaged workforce.
For detailed guidance on how the Employment Rights Bill could impact your recruitment strategies or workforce planning, get in touch with us.
For more information, visit the UK Government’s official page or REC’s insights on the bill.