Major Overhaul of Workers' Rights Set to Be Announced
Millions of employees are poised to receive enhanced protections against unfair dismissal from their very first day on the job, as part of a comprehensive overhaul of workers' rights outlined in the forthcoming Employment Rights Bill.
Among the key changes, workers will gain access to statutory sick pay from their first day of illness and will be able to claim unpaid parental leave from day one. However, the majority of these reforms are not expected to be implemented until autumn 2026, following a consultation period.
The government has described the 28 proposed measures as the "largest upgrade to rights at work for a generation." However, business groups have raised concerns regarding the practical implications of these changes.
Striking a balance between being pro-worker and pro-business remains a key challenge, and much of the bill's specifics are still under discussion.
Key Changes in the Employment Rights Bill
Unfair Dismissal Protections: The existing two-year qualifying period for protections against unfair dismissal will be abolished, granting workers these rights from their first day of employment. However, employees will face a nine-month probation period during which they can be terminated without a formal process.
Statutory Sick Pay (SSP): Workers will now be eligible for SSP from their first day of illness, instead of the current four-day waiting period. Additionally, the existing earnings limit of £123 per week for claiming SSP will be removed, though a reduced rate will apply for lower earners.
Paternity Leave: Fathers will become eligible for paternity leave from their first day of employment, a change from the previous requirement of 26 weeks.
Unpaid Parental Leave: Parents will have the right to claim unpaid parental leave from their first day of employment, rather than after one year.
Unpaid Bereavement Leave: This will be established as a "day one" right for all workers.
Flexible Working Requests: Employers will be expected to consider any requests for flexible working arrangements from day one, with a requirement to approve these requests unless they can demonstrate that doing so would be unreasonable.
These changes are expected to benefit approximately 30,000 fathers or partners regarding paternity leave and 1.5 million parents eligible for unpaid leave from day one.
Deputy Prime Minister Angela Rayner emphasized the importance of these reforms, stating, "Too many people are drawn into a race to the bottom, denied the security they need to raise a family, while businesses struggle to retain the workers necessary for growth. We are committed to raising the bar on workers' rights to ensure a stronger, fairer, and brighter future for work in Britain."
The government also plans to consult on establishing a new statutory probation period for new hires. While Business Secretary Jonathan Reynolds previously indicated a maximum probation period of about six months for most businesses, this topic remains contentious in ongoing discussions. Some trade unions have expressed concerns that a shorter probation period could lead employers to hesitate in hiring new staff or result in job cuts.