The Employment Rights Bill 2024 promises a "new deal for working people" with a radical set of reforms designed to enhance workplace rights. However, while the government has pledged to make 67 changes, only 28 have been outlined so far. Initially promised within 100 days, many changes are unlikely to be implemented until 2025, 2026, or beyond. But there’s no need to panic—the world will keep turning!
Key Reforms: What's Coming?
The bill targets several headline areas:
National Minimum Wage Increases
From April 2025, employers will need to prepare for notable increases in the National Minimum Wage:
Apprentices (first year): From £6.44 to £7.55 per hour (17.24% increase).
18–20-year-olds: From £8.60 to £10 per hour (16% increase).
21 and over: From £11.44 to £12.21 per hour (6.7% increase).
These figures underline the need for businesses to treat employees as investments. Proper people management is vital to secure a positive return.
Increased Employer Costs: Plan Early
Every employer will face a 1.2% increase in Employers’ National Insurance Contributions, bringing it to 15% for every employee starting April 2024. This change will significantly impact budgets, so businesses need to start planning now to mitigate the effects.
Unfair Dismissal Rights and Statutory Probation
Unfair dismissal rights will now apply from day one of employment. A new "statutory probation" period of nine months is being proposed, with a “lighter touch” process for dismissals linked to conduct or capability. However, employers will still need to document meetings and follow processes to avoid costly claims.
Statutory Sick Pay
Statutory Sick Pay (SSP) will increase and be paid from day one of sickness. The lower earnings limit will be removed, meaning more employees will qualify.
Family Leave
New family leave rights include:
Protections for those on family leave are also being strengthened, including preference for alternative employment and enhanced dismissal protections.
Zero-Hours Contracts and Flexible Working
Zero-hours workers will gain the right to a regular contract after 12 weeks of regular shifts. Employers will need to provide reasonable notice of shifts and offer compensation for changes or cancellations. Flexible working will become a day-one right and the default option unless proven “unreasonable.”
Fire and Rehire Practices
“Fire and rehire” practices will become automatically unfair unless a business faces severe financial difficulty.
Third-Party Harassment
From October 2024, employers must take reasonable steps to prevent third-party harassment, with policies and leader training becoming essential.
The Fair Work Agency
A newly established Fair Work Agency will enforce employment laws and ensure compliance. Its remit will expand over time, requiring businesses to stay vigilant.
Plan, Don’t Panic
While many changes won’t take effect for years, employers must stay informed. The team at People Matters HR advises businesses to:
Employers face an increasingly complex landscape, but with preparation and the right guidance, navigating these changes doesn’t have to be overwhelming. People Matters HR is here to help because your people matter.
