NEWS & RESOURCES

Employment Rights Bill Update: What Employers Need to Know (February 2025)

The latest version of the Employment Rights Bill has been published (which you can access here) and it incorporates several amendments submitted by MPs as part of the Parliament Committee Stage.   

We wrote previously about how the majority of the reforms will not take effect before 2026, providing employers the necessary time to plan and prepare for the changes.  This is because many of the reforms will require either secondary legislation, new Codes of Practices drafted or consultations to take place first.   

However, there are some reforms, that could be ready to be implemented once the Bill gets given Royal Assent, which could be before Parliament’s summer recess.  So, we must prepare for these as a priority.  

We have summarised in the table below potential time frames and what further steps are required before the reform can be implemented: 

Area of reform Further consultation / regulation required? Indication of when
Remove the three-day waiting period for Statutory Sick Pay No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Any refusal by an employer to a flexible working request must be ‘reasonable’ (i.e. not just meet one of the statutory decline reasons) No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Enhance the current duty on employers to prevent sexual harassment by requiring the employer to take ‘all reasonable steps’ No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Employers to become liable for third party harassment No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Widen the scope of what is a public interest disclosure, to include the category of sexual harassment allegations No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Remove the ‘at one establishment’ test in collective redundancy consultation threshold No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Introduce a requirement for employers to consult with any recognised trade union about the allocation of tips and gratuities No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Dismissal for failing to agree a variation of contract to be unlawful No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Right to a statement of trade union rights No Potential for 2025 – could be as soon as the Bill is given Royal Assent
The right to paid time off for trade union Equality Representatives No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Increase Employment Tribunal time limits from three to six months No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Reform the statutory union recognition procedure No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Repealing most of the measures in the Trade Union Act 2016 No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Repeal the Workers (Predictable Terms and Conditions) Act 2023 (which although became an Act of law in 2024, has never been given a commencement date) No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Ship operators to notify the Secretary of State of collective redundancies affecting a ship’s crew. No Potential for 2025 – could be as soon as the Bill is given Royal Assent
Government enforcement of employment rights related to agency workers, sick pay, holiday pay, the NMW Gangmasters licencing and modern slavery No Potential for 2025 – could be as soon as the Bill is given Royal Assent
The Right to Guaranteed Hours Yes Not before 2026 – consultation required
Reasonable Notice of Shifts / Cancellation of Shifts / Payment for Cancelled Shifts Yes Not before 2026 – consultation required
Statutory Sick Pay (removal of lower earnings limit) Yes Not before 2026 – consultation required
Parental Leave  (qualifying period) Yes Not before 2026 – further Regulations required
Paternity Leave (qualifying period / leave following shared parental leave) Yes Not before 2026 – further Regulations required
Bereavement Leave Yes Not before 2026 – further Regulations required
Dismissal During Pregnancy or Following Family Leave Yes Not before 2026 – further Regulations required
Public Sector Outsourcing: protection of workers Yes Not before 2026 – further Regulations needed along with a new Statutory Code of Practice
Equality Action Plans Yes Not before 2026 – further Regulations required
Information Relating to Outsourced Workers Yes Not before 2026 – further Regulations needed along with a new Statutory Code of Practice
School Support Staff Negotiating Body / Adult Social Care Negotiating Body Yes Not before 2026 – further Regulations required
Right of Trade Unions to Access Workplaces Yes Not before 2026 – further Regulations required
Blacklists Yes Not before 2026 – further Regulations required
Electronic Balloting for Industrial Action Yes Not before 2026 – Working group to be launched and further Regulations will be required
Detriment on Grounds of Industrial Action Yes Not before 2026 – further Regulations required

As you’d expect, the Employments Right Bill will be a big feature of our Virtual Employment Law Seminar, taking place on 6 March 2025.  Please do join us for this free event, as it is essential that employers remain up to date on all the developments taking place so that businesses can be prepared. 

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