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Several amendments to the Employment Rights Bill 2024 are now on the table. Cybill Watkins, Product Legislation Manager, explores the updates and what they could mean for HR and payroll.
In this blog
Recap: Employment Rights Bill 2024
Recap: Employment Rights Bill 2024
Last year, the government released its new Employment Rights Bill, with the stated aim of boosting UK workers’ rights on remuneration, flexibility, and job security.
Provisions include day-one rights to statutory sick pay (SSP), maternity/paternity leave, and protection from unfair dismissal. Flexible working, zero-hour contracts, and fire-and-rehire practices are also targeted in the proposed new labour laws.
For a full rundown of the original bill, visit What’s in the new Employment Rights Bill 2024?
February 2025 amendments
On 4th February the House of Commons produced an amendment paper with 25 pages of amendments to the Employment Right Bill. These will now be considered and voted on as the bill progresses through the parliamentary process. Here’s a rundown of the chief amendments tabled.
Domestic abuse
Bringing forward domestic abuse leave and creating a duty on employers with five or more employees to have a policy. This would outline the support they provide to workers who are victims of domestic abuse.
Carers’ leave
The new clause would make carers leave a paid entitlement. Being a carer to someone who fits the legislative description of needing long-term care would become a protective characteristic under the Equality Act 2010.
Statutory Parental Pay
Rates would increase to £368.06 a week from £184.03 (2024-25). Introduce reporting requirements for all companies with over 250 employees to publish information about their parental leave and pay policies.
Paternity leave
Increasing paternity leave to six weeks during the first 52 weeks after a birth (currently the entitlement is for two weeks).
Whistleblowing
Slightly extend the circumstances in which an employee is considered as unfairly dismissed after making a protected disclosure.
Statutory Adoption Pay (SAP)
Extending SAP to self-employed workers and contractors.
Kinship Care Leave
Introducing and subsequently expanding a new clause on kinship care leave.
Right to be accompanied
Expanding employers’ right to be accompanied by a certified companion at disciplinary and grievance hearings.
Health and safety
Legal right for workers in a workplace to be protected from gender-based violence and harassment.
Statutory Maternity Pay
Replacing £184.03 with an hourly rate of £12.60 in UK, and £13.85 per hour in London.
Pregnancy loss: bereavement leave and pay
Those who suffer pregnancy loss would now also be covered by bereavement leave and pay, under section 80EA of the Employment Rights Act 1996 (as amended by the new bill).
Unfair dismissal
This would fix the initial period of employment (probation period) to between three and nine months.
March 2025 amendments
The employment law changes are still undergoing revisions. On 4 March, the government announced further amendments that expand planned rights, summarised below:
Agency workers covered by zero-hour changes
The new rules on zero-hour contracts would also cover some 900,000 agency workers under the new amendments. Employers would need to offer them guaranteed-hours contracts based on an average of previously worked hours. The workers would be entitled to reasonable notice of shifts. They would also get proportionate pay when shifts are cancelled, curtailed, or moved at short notice.
Workers for umbrella companies would also gain comparable rights and protections as they would had they been taken on directly by a recruitment agency.
Expansion of Statutory Sick Pay (SSP) for low-paid workers
SSP will be a day-one payment, as proposed in the original draft bill. The new change means those who earn below the Lower Earnings Limit would get 80% of their average weekly earnings or the current rate of SSP – whichever is lower.
Collective redundancy
The government will increase the maximum period of the protective award from 90 days to 180 days. We also expect further guidance for employers on consultation processes for collective redundancies.
Increasing the maximum value of the award means an employment tribunal will be able to grant larger awards to employees for an employer’s failure to meet consultation requirements.
Employment law changes: Our analysis
These amendments provide welcome clarity but will introduce additional obligations and costs for businesses. Further reporting requirements may also challenge stretched HR and payroll teams. There appears to be an inconsistency regarding Statutory Maternity Pay, which states both a weekly amount (£368.06) and an hourly rate (£12.60/£13.85). Although employers can claim 92% back from the government, they will need to find additional funds per week, plus employer’s NIC.
The zero-hour contract changes raise questions for small agencies. Conversations with several small agency owners suggest they may struggle to provide guaranteed-hour contracts. These agencies, which often support larger organisations by filling occasional shifts, may focus solely on permanent placements if these changes proceed. The question remains whether end clients or agencies will absorb the costs of notice periods and compensation for cancelled shifts.
On Statutory Sick Pay, removing waiting days will simplify payroll processes but increase costs for employers. It’s uncertain whether the policy will achieve its stated aim of allowing employees proper recovery time, as the daily rate may be insufficient to replace wages, particularly for those on minimum wage. Post-implementation data will be valuable in assessing the actual impact of these changes.
Conclusion: Be prepared
These amendments are likely to progress to the next parliamentary stage with minimal opposition. Most provisions already enjoy substantial support. Organisations looking to get ahead should begin reviewing their policies and be ready to make any necessary updates as and when the changes come into effect.
Key takeaways
- The February and March 2025 amendments significantly expand workers’ rights, including increased parental pay, extended paternity leave, and day-one statutory sick pay entitlements.
- Agency workers and those on zero-hour contracts gain substantial new protections, including guaranteed-hours contracts based on average working patterns.
- Collective redundancy provisions have been strengthened, with the maximum protective award period doubling from 90 to 180 days.
- Small agencies and businesses may face implementation challenges, particularly regarding guaranteed hours and increased statutory payment obligations.
- The amendments include expanded whistleblowing protections and new requirements for domestic abuse policies for employers with five or more employees.
- Most amendments enjoy broad support and are likely to progress through Parliament with minimal opposition.
Are you prepared for the Spring Statement 2025?
Read a preview of what the next set of Treasury announcements might bring for employers, HR, and payroll professionals.
