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