The Employment Rights Bill, published today, delivers one of the most comprehensive reforms to employment legislation in decades. The bill addresses key issues such as ending exploitative zero-hour contracts, curbing unfair dismissal practices, and making flexible working the default for employees.
The legislation seeks to eliminate “one-sided flexibility,” where workers face unpredictable hours. Workers on zero-hour contracts, 84% of whom would prefer guaranteed hours, will now have the right to a guaranteed hours contract if they work regular hours. Research from the TUC shows nearly two-thirds of managers believe ending zero-hour contracts would benefit their businesses.
The bill also closes loopholes allowing exploitative “fire and rehire” practices, giving workers greater protection against unfair dismissal from day one. It repeals ineffective anti-union laws and addresses low pay by removing discriminatory age bands for the minimum wage, accounting for the cost of living.
Business Secretary Jonathan Reynolds said:
“The best employers know that employees are more productive when they are happy at work. That is why it’s vital to give employers the flexibility they need to grow whilst ending unscrupulous and unfair practices.
“This upgrade to our laws will ensure they are fit for modern life, raise living standards and provide opportunity and security for businesses, workers and communities across the country.”
Another central aim is supporting working families. The government will strengthen protections for pregnant women and new mothers, introduce a statutory right to bereavement leave, and set a standard for employers to address gender and ethnic pay disparities. Flexible working will be the default option unless deemed unreasonable by employers.
To enforce these rights, the bill establishes a new Fair Work Agency tasked with enforcing holiday pay and sick pay for the first time while supporting businesses in complying with the law.
Looking ahead, the government’s ‘Make Work Pay Plan’ outlines future reforms, including the potential introduction of a “Right to Switch Off” to prevent out-of-hours contact and mandatory reporting of ethnicity and disability pay gaps for large employers. These efforts aim to maintain growth and opportunity while ensuring employment rights evolve with the economy.
Much of the detail in the Bill will be consulted over the next two years, especially regarding the probationary periods, which may be extended to nine months.
Paul Nowak, TUC General Secretary, said:
“After 14 years of stagnating living standards, working people desperately need secure jobs they can build a decent life on.
“Whether it’s tackling the scourge of zero-hours contracts and fire and rehire, improving access to sick pay and parental leave, or clamping down on exploitation – this Bill highlights the Government’s commitment to upgrade rights and protections for millions.
“Driving up employment standards is good for workers, good for business and good for growth. While there is still detail to be worked through, it is time to write a positive new chapter for working people in this country.”
Full details about today’s announcement can be found on the gov.uk website