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The UK government is preparing to launch an Employment Rights Bill that would extend paid and unpaid leave entitlements and remove limits on Statutory Sick Pay. Angela Rayner, the Deputy Prime Minister, described the legislation as the “biggest upgrade to rights at work for a generation.” The government said the bill would end the use of so-called “fire and rehire” and exploitative zero-hours contracts. It will also remove the two-year qualifying period for protection from unfair dismissal from a new job’s very beginning. The majority of the 28 provisions in the bill would be subject to consultation and would not come into effect until autumn 2026.
Numerous reforms will be included in the bill. Workers will be able to claim unpaid parental leave. They will also receive stronger protections from unfair dismissal from the first day they start a job. Statutory Sick Pay (SSP) would be expanded, and the lower earnings limit for SSP eliminated. A father will be qualified for paternity leave upon starting a new employment, and unpaid parental leave granted to parents from day one of starting a position. Additionally, bereavement and flexible leave opportunities will be offered. A new statutory probation period for new hires is under consideration, and employers must provide employees with a guaranteed-hours contract based on their clocked hours during a 12-week period.
The government stated that the legislation seeks to balance both pro-worker and pro-business interests. The existing law that limits the amount of Sick Pay payroll is among the changes. While some labour unions have praised the plan, business groups have voiced worries about the challenges it will create. Tina McKenzie, the Policy Chair of the Federation of Small Businesses, criticised the bill as a “rushed job, clumsy, chaotic and poorly planned.” The restaurant and hospitality industry has expressed concern that the proposed changes could push up labour expenses in economically fragile sectors without necessarily helping low-paid staff.
The Right Honourable Jonathan Reynolds, the Business Secretary, has stated that it is vital to strike a balance between flexibility and growth while eliminating “unscrupulous and unfair practices.” Gary Smith, the General Secretary of the GMB union, hailed the bill as a significant first move towards securing workers’ rights. However, he claimed that there is a long journey ahead, adding that unions and employees must participate in the debate around the new bill
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