Reshaping employee rights in the workplace

The Employment Rights Bill is currently progressing through Parliament. 5 ways employers can plan ahead and prepare for the progressive changes.

Today’s employees increasingly expect flexibility, support and inclusivity.

Legislation is currently progressing through Parliament to reflect this shift in expectations. But adapting to these new norms is not just about legal compliance, it’s about redefining workplace practices with what people value.

Fairness and flexibility are at the core of The Employment Rights Bill. It signals a dramatic shift towards greater protection for workers through improved job security and flexible working arrangements.

The Bill is poised to reframe employment law to align with evolving societal attitudes towards previously unprotected workers, grief, gender equality, shared parental responsibility and work-life balance.

Around 1.2 million unprotected agency workers, 4.8 million working mothers and the UK’s 1.4 million sandwich carers with responsibilities for elderly parents and young children stand to benefit greatly from the new legislation.

Employment tribunal claims and costs rising

From April 2023- 24 the number of employment tribunal claims rose from 86,000 to 97,000 with an average unfair dismissal award of £13,749.

However, the highest payout in an unfair dismissal claim was £179,124 and £995,128 in a sex discrimination case – with the associated legal fees on top.

The average legal costs for an unfair dismissal case in the UK for employers can range from around £7,500 for a simple case to £40,000 plus for a high complexity case, highlighting the need to have the reassurance of a legal expenses policy in place.

At the end of March 2025, the open caseload was 45,000 claims, a staggering increase of 32% on last year which indicates that employees are becoming more aware of their rights and increasingly willing to challenge perceived injustices.

With unfair dismissal claims accounting for 22% of the total caseload, this backlog is expected to increase at an unprecedented rate when the proposed day one right to claim unfair dismissal comes into effect.

Could your clients cover the legal costs of an employee dismissal or discrimination claim?

Forewarned is forearmed

5 key changes clients should prepare for

To avoid potential costly and lengthy employment disputes, employers should start laying the groundwork now – by reviewing their procedures and policies in preparation for the anticipated changes.

  1. Leave enhancements for carers

Measures designed to support employees with caring responsibilities during key life stages are a key focus of the Bill. 

Changes are proposed to improve the accessibility of paternity, bereavement, unpaid parental and neonatal care leave.

For both paternity and parental leave, the service requirement will be eliminated, allowing employees to take two weeks of paternity leave within the first year after their child’s birth or adoption. The Bill will further permit paternity leave to be taken after taking shared parental leave.

For unpaid parental leave, all employees can take up to 18 weeks of unpaid parental leave per child until their 18th birthday with a cap of four weeks per year.

Employees with babies admitted to neonatal care within the first 28 days of life who need a minimum of seven days in hospital will have the legal right to up to 12 weeks of paid leave from day one of employment – as well as their standard paternity and maternity leave.

Pregnant employees and those returning from family leave must be offered suitable, alternative roles in redundancy situations.

The legislation also establishes a day one right to time off to grieve the loss of a loved one, permitting a minimum of at least one week of paid leave. Bereavement leave must be taken within 56 days of the individual’s death.

These complex changes demand a thorough review of all HR policies and practices – if in any doubt, employers should engage with legal specialists who can ensure company contracts at all levels align with legislative changes.

2. Day one unfair dismissal protection

Currently, employees need to have at least two years’ continuous service to bring most unfair dismissal claims. Under the new proposals, some protections will apply from the first day of employment, particularly where dismissals relate to working hours and flexibility.

The length of the statutory probationary period is expected to be increased to nine months and the scope of reasons for unfair dismissal is also likely to be extended.

This means employers will need to proceed with caution when terminating employment – contracts terms and dismissal processes should be watertight.

3. Right to request flexible working from day one

The Bill proposes that employees can make a request flexible working terms from day one of employment – replacing the existing 26-week qualifying period. 

Employees will be entitled to two requests per year, and employers must respond to the request within two months rather than three – but can still refuse on 8 statutory business grounds.

Employers should therefore start to document what forms of flexible working arrangements suit the organisation and formalise legitimate business grounds for refusal.

4. Zero hours contracts abolished

The insecurity of zero-hours arrangements which has plagued retail, hospitality, construction and logistics will be a thing of the past under the new Bill. These contracts will be replaced by guaranteed hours contracts creating more security and financial stability for workers in industries that rely heavily on temporary, casual, freelance or unpredictable work patterns. 

Additionally, the Bill places a strong emphasis on safeguarding the rights of workers in these precarious or non-standard employment relationships with day one protection against unfair dismissal – giving them the same rights as their employed colleagues.

Employers should use the Bill as an opportunity to review and reissue all employee contracts – and create new contracts for workers who have previously had none.

5. And end to fire and re-hire

The Employment Rights Bill will put a stop to “fire and rehire” practices, making it unfair to dismiss an employee if the plan is to re-engage them on new, less favourable terms.

Redundancy and recruitment policies need to be reviewed to reflect this amendment to avoid being exposed to a potentially costly and time-consuming employment dispute.

 Key changes in brief

  • Day One protection from unfair dismissal
  • More consistent working hours and fair conditions for all workers – employed and contracted
  • Immediate access to request flexible working 
  • Additional support for carers and parents 

Key action points

  • Update employment contracts, HR policies and employee handbooks to reflect new rights 
  • Review recruitment, probation and dismissal procedures
  • Prepare for flexible working conditions
  • Consider the additional costs and obligations arising from guaranteed hours and carer leave 
  • Equip HR and management teams with training and tools to implement the new legal framework 
  • Consider legal expenses insurance to protect yourself from potential employment disputes

Stat Sources

Menopause claims triple in two years, tribunal statistics show | theHRD

https://www.mfmac.com/insights/employment/the-annual-employment-tribunal-award-statistics-have-been-published-for-20232024

https://bsc.croneri.co.uk/whats-new/latest-tribunal-statistics-released

The Renters Reform Bill is reforming

What landlords need to know about the evolving rental risk landscape

After years of consultation, debate and delay, the Renters Reform Bill is inching closer to becoming law – a move set to reshape and shake up the private rental sector in England.

While the Bill’s intentions to create a fairer rental market have been welcomed by tenants, for landlords and letting agents, the changes mark a significant shift in operational, financial and reputational risk.

What’s changing?

The Bill proposes sweeping reforms, including:

  • The abolition of Section 21 ‘no-fault’ evictions – replacing them with more structured grounds for possession under an updated Section 8 framework.
  • Doubling notice periods for rent increase to two months.
  • The introduction of a Decent Homes Standard in the private rented sector.
  • A new digital Property Portal to increase landlord accountability and compliance visibility.
  • Greater rights for tenants to keep pets. Landlords will be required not to unreasonably withhold consent
  • A strengthened Ombudsman scheme to handle disputes more efficiently.
  • Changes to tenancy structure, with assured shorthold tenancies replaced by periodic tenancies.

Although the government has stated that Section 21 will not be abolished until court reforms are in place, landlords should be preparing now for the inevitable legal and procedural shifts.

6 key risks for landlords

1. Longer dispute resolution timelines

Without Section 21, regaining possession could become a more protracted and litigious process. This heightens the risk of extended void periods, arrears and legal costs, particularly for landlords with tenants in breach or who need properties back for sale or family use.

2. Compliance and regulatory exposure

The Property Portal will create a central register of landlords and their legal compliance. This transparency could increase the risk of penalties for administrative oversights or non-compliance – especially for those managing multiple properties or relying on outdated systems.

3. Insurance considerations

With longer tenancies, rent arrears and the potential for harder-to-resolve disputes, property owner liability, legal expenses insurance and rent guarantee protection will become more important – but possibly more complex to secure.

4. Legal expenses protection and Rent Guarantee protection: a growing necessity

As eviction cases shift from a straightforward Section 21 process to a potentially contested Section 8 route, the importance of legal expenses protection is magnified. Policies typically cover solicitor’s fees, court costs and legal representation, which can otherwise escalate quickly in contentious possession proceedings. Whilst Rent Guarantee protection can also provide a landlord with piece of mind that their rent arrears will be paid where the tenant is refusing to pay whilst they are seeking possession of the property.

Landlords should check whether their current insurance includes legal cover – and if so, under what conditions. Policies should ideally be aligned with the updated grounds for possession and flexible enough to support newer types of dispute resolution, such as engagement with the Private Rented Sector Ombudsman.

Working with an insurance broker who understands the rental market and the changing legal framework is also advisable to ensure adequate and up-to-date protection.

5. Increased financial pressures

Landlords may face increased costs associated with meeting new Decent Homes Standards, including energy efficiency upgrades or structural repairs. For those with tighter margins or portfolios of older properties, this could affect profitability.

6. Reputational risk and tenant relations

A more empowered tenant population – backed by an Ombudsman and open records – means landlords must carefully manage communication and service levels to avoid reputational damage. Professionalism will become increasingly important in maintaining tenant satisfaction and minimising complaints.

Preparing for a new era of letting

While the Bill is still making its way through Parliament and some timelines remain uncertain, proactive landlords and agents should:

  • Review possession procedures and stay up to date with the evolving Section 8 grounds.
  • Undertake compliance checks on all properties, particularly with regard to minimum standards and documentation.
  • Evaluate risk transfer strategies, including updating insurance policies for rent guarantee, legal protection and property owner liability.
  • Consider professionalising operations, either through letting agents or portfolio management services to ensure preparedness and resilience.

The Renters Reform Bill represents a fundamental shift in the landlord-tenant relationship – and with it comes a rebalancing of risks.

While the reforms may lead to a more stable and transparent rental sector in the long term, landlords must act now to mitigate the transitional risks and protect their investments.

Proactive, informed management – and the right insurance coverage, including legal expenses and rent guarantee protection – will be key to navigating the change – and minimising landlord risk exposure.

Cyber risk rising

How cyberattacks are reshaping business risk

From boardrooms to boiler rooms and beyond, cyber criminals are now a mainstream threat. How can insurers and brokers educate and evolve to ensure that clients are properly protected from this new wave of digi-crime?

Cyber-attacks have become one of the most significant operational risks facing businesses today. Once confined to the concerns of IT departments, cybersecurity has now risen to the top of corporate risk registers, with incidents ranging from ransomware to data breaches having the power to shut down operations, destroy customer trust and invite costly legal claims.

A shifting risk landscape

According to the UK Government’s 2024 Cyber Security Breaches Survey, 70% of medium-sized businesses and 74% of large businesses reported experiencing a cyber breach or attack in the past 12 months.

The frequency, severity and financial fallout of these attacks is rising, with ransom demands reaching seven-figure sums and the regulatory penalties for data loss becoming ever more punitive.

What’s more, the scope of risk is broadening. Supply chain vulnerabilities, remote working practices and the growth of AI-driven attacks are exposing new weaknesses in corporate defences. Even businesses with strong IT hygiene are finding themselves liable through third-party failures – or at the mercy sophisticated and relentless cyber gangs.

Just ask M&S who faced over a month without online operations or invaluable customer insights gained from Sparks. The cyber-attack will hit their profits by around £300m – that’s a third of its profit – a sum that will only partly be covered by any insurance pay-out.

Warning: check the small print

There is a widespread misconception that commercial liability policies include cyber cover. Most don’t. Ours doesn’t. We leave cyber protection to the cyber specialists while we focus on protecting other sector specific risks.

But that doesn’t mean that cyber-crime isn’t on our radar.

All commercial insurers still need to be aware of the complex and emerging implications of cyber-attacks and the far-reaching impact on business protection and potential lawsuits.

Although cyber is a niche policy area, it is a growing one that is reshaping the insurance sector and bringing business interruption coverage into the spotlight.

Businesses without a dedicated cyber policy could find themselves dangerously underinsured or entangled in complex disputes over policy response – and payout. Or lack of it.

Blurring the lines between liability and cyber

As digital threats increasingly impact areas traditionally covered under other lines – such as professional indemnity, directors’ and officers’ (D&O) liability and general commercial liability – the lines are blurring.

For example, if a ransomware attack leads to a failure to deliver contracted services, the business may face litigation for breach of contract or negligence – triggering PI or general liability claims. Similarly, directors may be held accountable for failures in cyber governance or risk oversight, putting D&O policies under pressure.

This convergence presents challenges for brokers and underwriters alike. Clarity around exclusions limits and how different policies interact in the event of a cyber-related claim is now more critical than ever before.

Implications for brokers

For brokers and MGAs, the evolving threat landscape presents an opportunity to adopt a more consultative role. Cyber requires a deep understanding of a client’s digital operations, supply chains, regulatory exposure and risk tolerance.

Where clients wrongly assume their general liability or PI policy will respond to cyber claims, brokers must provide education – and where appropriate guide them towards solutions that close the gap.

Fighting fraud

The convergence of cyber risk and online fraud with broader liability exposure will continue to accelerate. With generative AI enabling more sophisticated phishing and fraud attempts, insurers must remain agile and alert.

For the insurance industry, this represents an opportunity: to lead with expertise, drive resilience and help clients navigate the increasingly complex cyber threatscape and how it impacts on all aspects of business liability.

The message is clear: check your policy wording. Read the small print. Examine the exclusions. Study the T&Cs. Ask your insurer. Double check with your broker. It could be time well spent so your business isn’t exposed to cybercrime underinsurance.

Our new era

BIBA 2025 is in sight. The stand is ready. The merchandise has arrived. The literature is printed. The drinks and snacks ordered. The goody bags are packed. We’re ready to embrace ‘A New Era.’

In our graduate era

Mentoring and training are essential to attracting new talent to the insurance industry. Graduate Training Programme has enjoyed tremendous success including Joe Hignett who was promoted to Underwriter in August 2024 – the quickest promotion in Irwell’s 30-year history!

Our Graduate Training Programme sends a clear message to those interested in a career in finance – we believe in you, we see your potential and we will support your ambitions. We want you to be part of Irwell’s journey for the long haul.

This belief turns a job into a rewarding career.

But we couldn’t do it without support from the ABI, MGAA, CII and BIBA.

All these institutions provide first-class training, resources and networking opportunities to create the next generation of insurance experts who will shape and shake up our sector.

Attending events such as BIBA gives a true appreciation of the vast and varied opportunities in the insurance sector. It allows the next generation to be connected, curious and committed to creating the next era of broking, underwriting, claims, risk and compliance.

Yes, the BIBA goody bags are great but the connections, insights and industry stalwarts you will meet are even better!

What does this ‘new era’ mean to our two new underwriting graduates Annie Chapman and Cameron Price who are attending BIBA 2025 for the first time?

We find out what they hope to get out of this prestigious event (apart from the BIBA goody bags!) with 3 quick questions:

  1. What do you plan to ask brokers at the Biba Conference 2025?
  2. What highlights will you be telling them about Irwell?
  3. The theme for the conference this year is A NEW ERA. What do you hope this new era looks like?

Annie Chapman

  1. I’d be interested to find out if they have seen any interesting trends or gaps in cover emerging in the market. At Irwell, we are all about innovation and providing specialist cover that may not be readily available for some higher risk or niche sectors.
  • I’ll be sharing our plans to grow the business through new products. For example, we have just launched Officers’ Legal Protection which provides legal expenses for serving officers and their families.
  1. I hope this new era brings better use of insightful data so we can focus on understanding risks and supporting clients with the right products. Improved automation will hopefully speed up decision-making and reduce admin!

Cameron Price

  1. I’m really interested to find out how brokers see advancements in technology and AI impacting their brokerage and the wider insurance sector in the future.
  • This year AM Best revised its outlook from stable to positive for our Long-Term Issuer Credit Rating. Our next focus is working towards getting an AM Best rating A in the near future. I think that’s worth shouting about!
  • In the new era I would like to see the industry embracing digital innovation in order to serve customers in a more personalised and efficient way. I also hope it brings a stronger collaboration across sectors – where insurers, coverholders, brokers, tech firms and regulators work together to build resilience for the insurance sector – and make it more appealing to people who may not have ever considered a career in insurance.