The workers’ rights shake-up: how it could affect you

The government’s new Employment Rights Bill is now in its final stages.

It applies to England, Scotland and Wales, but not Northern Ireland, where employment law is devolved.

The aim is to strengthen workers’ rights and create better working conditions. Ministers say the bill represents the “biggest upgrade to rights at work for a generation”.

What will the bill improve?

According to the government, the bill will:

• ensure workplace rights are fit for a modern economy
• support economic growth
• help more people stay in work
• make work more family-friendly
• improve living standards

Originally, the bill promised day-one rights to claim unfair dismissal. This would have replaced the current two-year qualifying period, but it faced opposition from business groups.

The government has now changed this to a six-month qualifying period, breaking its manifesto commitment.

Ministers say the change was necessary to avoid delays in implementing the legislation. Some measures are expected to come into force in April 2026, with others introduced later.

What’s included in the bill?

Statutory sick pay

Currently, you only receive statutory sick pay (SSP) if:

• you’ve been off sick for at least three consecutive days, and
• you earn at least £123 per week on average.

Under the new bill:

• SSP will be paid from the first day of illness, and
• the lower earnings limit will be removed, meaning you can qualify even if you earn under £123 per week.

Flexible working

Flexible working is defined by the government as any arrangement that “suits an employee’s needs”, such as working from home or flexible start and finish times.

Under the new legislation:

• Flexible working becomes the default from day one of employment.
• Employers must agree to requests unless they can prove it is unreasonable.

Employers can refuse a request only on specific grounds, such as:

• additional costs
• negative impact on customer demand
• difficulty reorganising work
• difficulty recruiting more staff
• reduced quality of work

Zero-hour contracts

If you’re on a zero-hours contract, your employer will be required to offer you a contract with guaranteed hours based on the hours you’ve worked over a 12-week period.

However:

• You can choose to stay on a zero-hours contract if you prefer it.
• You’ll be entitled to reasonable notice of shift changes and compensation if shifts are cancelled or cut short.

Fire and rehire

The bill will largely ban ‘fire and rehire’, where employers dismiss staff and rehire them on different terms, often less favourable to the worker.

For example, employers will no longer be able to impose new shift patterns or pay cuts and dismiss you if you refuse.

But the practice may still be allowed if a business is at risk of insolvency.

Unpaid parental and bereavement leave

At present, you only qualify for unpaid parental leave after one year with your employer. The bill changes this to a day-one right.

The same applies to bereavement leave.

Any employee can take time off after the death of a dependent, which includes:

• a spouse or partner
• a civil partner
• a child
• a parent
• someone who lives with them (excluding tenants or lodgers)
• someone who relies on them, such as an elderly neighbour

What’s missing from the bill?

Not all of the government’s previous ‘Make Work Pay’ promises have been included. These include:

• The ‘right to switch off’, which would prevent employers contacting staff outside of working hours.
• A single worker status, intended to give greater protections to people who are technically self-employed but work almost exclusively for one employer.

These measures may be revisited later due to legal complexities.