Employment Rights Bill

What Workers Need to Know: New Employment Rights Bill 

The recent passing of the Employment Rights Bill marks an important step toward improving workplace standards and protections. Designed to address both long-standing and emerging issues, this bill has specific provisions for agency workers and permanent employees.

Although many of these changes will not come into force until 2026, here’s a summary of what the bill means and how it could affect you. 

Key Changes in the Employment Rights Bill For Agency Workers: 

1. Contract Stability for Zero or Low-Hours Workers: The government is consulting on how to implement these provisions for agency workers, as their work patterns are often more variable than permanent workers. However, similar protections are expected, enabling agency workers to gain greater contract stability and receive reasonable notice for shifts. Under the new legislation, workers may have the right to request contracts that reflect their average hours based on a 12-week reference period. 
2. Statutory Sick Pay (SSP): The ERB removes the lower earnings threshold and the three-day waiting period for SSP, making it available to more workers from day one of illness. This change enables quicker and more inclusive access to sick pay regardless of earnings for those workers who are currently on assignment. 
3. Probation Period Adjustments: Since agency workers typically don’t undergo standard probation periods in the same way as permanent employees, this provision is less relevant to their employment structure. However, agency workers who transition to permanent roles could be affected by this rule if their client offers a full-time position. 

Key Changes in the Employment Rights Bill For Permanent Employees: 

1. Contract Stability for Zero or Low-Hours Workers: For those on zero or low-hours contracts, permanent employees may have the right to request a contract reflecting their regular hours after a 12-week reference period. This provision is designed to reduce instability for workers in fluctuating roles by allowing them to transition to contracts that better reflect their actual hours. 
2. Protection from Unfair Dismissal: Permanent employees will have protection from unfair dismissal from the first day of employment, eliminating the previous two-year waiting period. This provision means that employees in full-time roles have immediate recourse if they face unjust termination. 
3. Statutory Sick Pay (SSP): The ERB removes the lower earnings threshold and the three-day waiting period for SSP, making it available to more workers from day one of illness. This change enables quicker and more inclusive access to sick pay for permanent employees, regardless of their earnings. 
4. Flexible Working as the Default Option: The ERB proposes that flexible working should become the default option for permanent employees. Unless an employer has a valid reason to refuse, flexible working requests are expected to be accepted, allowing employees to work in a way that suits their needs, whether that’s remote working, adjusted hours, or part-time options. 
5. Enhanced Parental and Bereavement Leave: Parental leave and bereavement leave will now apply from day one of employment for permanent employees. This change ensures that all employees, regardless of their tenure, have immediate access to these essential forms of leave, supporting work-life balance for new parents and those dealing with loss. 
6. Limitations on Fire-and-Rehire Practices: The ERB introduces limitations on fire-and-rehire practices, making it more challenging for employers to terminate and rehire workers on less favourable terms. Employees may claim compensation in such cases, with caps on awards potentially removed for unfair dismissals without a proper redundancy process.  
7. Probation Period Adjustments: For permanent roles, the ERB allows a nine-month probation period during which employers can dismiss an employee for performance-related reasons without a full dismissal process, as long as at least one performance review meeting occurs. 

For both agency workers and permanent employees, the ERB introduces the Fair Work Agency (FWA), a new enforcement body that expands on the idea of the Single Enforcement Body proposed in 2018. The FWA is expected to handle enforcement of rights around Statutory Sick Pay (SSP), holiday pay, and other entitlements for both permanent employees and agency workers. It will serve as a central body to support compliance and worker protection across different employment types. 

A Positive Step Forward 

The new Employment Rights Bill brings significant benefits to both permanent employees and agency workers, aiming to create fairer, safer, and more transparent workplaces. Agency workers can look forward to enhanced security and job stability. Meanwhile, permanent employees will gain from increased clarity, job security, and flexible working options. 

At The Best Connection, we are dedicated to meeting all legal requirements for our temporary and permanent team members. We’re committed to building a fair and inclusive environment for everyone. 

For those seeking flexible working patterns, temporary work remains a great choice, especially with the introduction of more benefits and protection. To explore available roles near you, discover your local team at www.thebestconnection.co.uk/branches or dive right in and find the role for you today at www.thebestconnection.co.uk/jobs.