Amendments to the Employment Rights Bill

Today, March 5, 2025, the government has introduced another round of at least 200 proposed amendments to the Employment Rights Bill. These changes follow the previous Bill reading in October and are based on consultations carried out at the end of last year. ​

It’s being called the “biggest upgrade to workers’ rights in a generation”. Combined with potential changes in the 2025 Spring Budget, if you run a business in the UK these changes could have significant impacts on how you manage your business.

Here’s what we know so far…

The zero-hours ban will now include agency workers

The government is proposing closing loopholes that allow businesses to keep workers on uncertain contracts for extended periods.

The previously proposed right to notice for the cancellation, alteration, or reduction of shifts, along with an offer for guaranteed hours contracts, will now also include agency workers.

What this means for you:

• If you rely on agency workers, you might need to offer them a more stable contract

• Planning your workforce schedule in advance will be more important than ever

• Budgeting for additional wage costs might be necessary

While this change is about ensuring workers get fair treatment and stability, it could also mean a higher wage bill for your business.

1.3 million more workers to be entitled to Statutory Sick Pay

It’s been proposed that Statutory Sick Pay (SSP) will be available to ALL workers, even those earning under £123 a week. Previously, these workers didn’t qualify at all.

What this means is up to 1.3 million more workers would be entitled to Statutory Sick Pay (SSP), with those on low wages receiving either 80% of their average weekly earnings or the current rate of SSP, whichever is lower.

But that’s not all—sick pay could kick in from the first day of sickness, rather than day three.

What this means for you:

• If you employ part-time or lower-paid workers, you’ll need to account for sick pay

• Your payroll processes may need updating to reflect the new SSP calculations

• You will need to keep on top of your absence management and make sure your sick leave policies are up to date

This is a win for employees but could have massive financial and admin implications for business owners.

Stricter rules on collective redundancies and ‘Fire and Rehire’

The amendment proposes a change from where previously, businesses would have had to pay 90 days’ worth of compensation if they failed to consult workers properly, to 180 days—That’s now double.

What this means for you

• You cannot change contract terms without proper consultation and notice

• If you mess up, fines and compensation payments will be much steeper

If you need to make contract changes, you’ll need to handle them legally and transparently—or risk a costly employment tribunal.

Bereavement leave after miscarriage

Although not confirmed, the amendment proposes that employees who experience a miscarriage before 24 weeks would now be entitled to two weeks’ bereavement leave.

 What this means for you

• If an employee experiences pregnancy loss, they legally get paid leave

• You may need to adjust HR policies to reflect this

While it would be a step towards better workplace compassion, it would also be a legal requirement you’ll need to comply with.

A “disconnect” with the right to disconnect

At the start of this week, it was reported that the government may announce a proposal on introducing the right to disconnect.

However, it’s not been confirmed. We predict that there’ll be more on this to come but as of now, all we know is that it may come but in a slightly different form. This is one to keep an eye on.

Change is coming you need to be prepared

Everything we know up to this point includes all the proposals that have been part of the Bill from the very beginning—not just what’s mentioned above—such as:

• The right to unfair dismissal from day one

• Statutory probation periods

• Making flexible working the standard

• The right to paternity and parental leave from day one

• Statutory bereavement leave

• And much more

These upcoming changes are likely to create major compliance hurdles for your business. But don’t worry, we’re here to help.

We’re offering a complimentary HR document review to help you navigate these changes. We’ll go through your policies and contracts to ensure they align with the latest government regulations.

Don’t let these new laws surprise you—Book your FREE document review today!