It’s not every year we get a workplace reform Bill that tries to change quite so much at once. The Employment Rights Bill, introduced in late 2024, does exactly that. It doesn’t just tweak the edges, it reshapes several parts of employment law that employers have relied on for decades.
For small and medium-sized businesses, this isn’t something to push to the bottom of the inbox. The proposals affect everything from contracts and working hours to sick pay, staff turnover, and even how complaints are handled. Some changes may barely register in practice. Others will need real adjustment. What follows is a breakdown of what’s in the Bill, and why now’s a smart time to get ahead of it.
Unfair dismissal from day one
This is the headline grabber. If the Bill passes as drafted, employees will no longer need two years of service before claiming unfair dismissal. The protection would apply from their very first day.
For employers used to having that early-stage flexibility, this is a real change. Dismissals, even in probation, will need to be justified and handled fairly. That means a documented process, a valid reason, and ideally, clear communication throughout. Informal arrangements or instinctive “this isn’t working” conversations won’t be enough anymore if challenged.
Sick pay kicks in sooner
Here’s one many employers haven’t clocked. Statutory Sick Pay (SSP) currently starts on day four of an absence. The Bill scraps that waiting period, making it payable from day one.
That might not sound like much, but it adds up quickly. A handful of short absences each month, across a lean team, could start to dent cash flow. It’s not optional, either. If enacted, the rule will apply across the board. Payroll systems will need adjusting, and managers will need to track absence from the very first hour, not the third day in.
Flexible working requests
Flexible working isn’t new. Since April 2024 employees have had a day-one right to make a request.
Whilst an employer can refuse a request for one or more of the prescribed statutory reasons, the test is a subjective one on the part of the employer: if the employer considers that one or more of the grounds applies, then the test is satisfied.
The government pledged to make flexible working the default from day one except where it is “not reasonably feasible”, The Bill introduces a test of “reasonableness”. Employers will only be able to rely on one of the statutory reasons to refuse a request for flexible working where it is reasonable to do so. This will make it more difficult for an employer to refuse a request for flexible working and is likely to result in more tribunal claims where a flexible working request is refused, due to the introduction of arguments about the reasonableness of that refusal.
For businesses already offering hybrid or part-time options, this might be business as usual. For those less accustomed to it, now is a good time to test where flexibility works, and where it really doesn’t.
More predictability for irregular workers
Zero-hour contracts and casual staffing models are firmly in the Bill’s sights.
The government has stated that it is committed to ending one-sided flexibility by banning exploitative zero hours contracts and ensuring workers have the right to a contract that reflects the number of hours they regularly work, as well as reasonable notice or compensation for changed, cancelled or curtailed shifts.
If someone’s been working the same shifts most weeks for months, the expectation is they’ll be able to formalise that. Employers will need to offer a guaranteed hours contract that reflects the hours qualifying workers and qualifying agency workers regularly work over a reference period (to be specified in regulations, but the government suggested it should be 12 weeks).
Tribunal deadlines get longer
The time limit for bringing most employment tribunal claims is currently three months. That would double, to six, under the new proposals.
Why does that matter? Because it stretches out the period during which disputes can come back to bite. That exit conversation you thought had been handled well? You might be hearing about it again five and a half months later. Documentation (such as notes, emails and minutes) will need to be retained longer. And ideally, recorded more thoroughly in the first place.
Leave rights strengthened
Several types of statutory leave are set to become available earlier. Paternity, bereavement and parental leave would all be accessible from day one of employment. Carer’s leave might also become paid, though that detail is still being finalised.
This reflects a broader policy theme: work and care shouldn’t compete. It also means that onboarding processes will need to explain leave rights clearly, right from the start. Managers will need to stop relying on “length of service” as a reason to defer or deny requests.
Harassment complaints and whistleblowing
One of the more nuanced changes is the proposal to bring certain sexual harassment complaints under the whistleblowing framework. That means some reports, particularly those highlighting patterns of behaviour or systemic issues, would be treated as disclosures in the public interest.
That triggers additional protections for the employee and could draw in wider scrutiny if not handled properly. The key here? Make sure your whistleblowing and harassment policies aren’t just sitting in a handbook. They need to work in practice, and work alongside each other.
A new regulator on the horizon
To enforce all of this, the Bill introduces a new body: the Fair Work Agency. It’s set to bring together several enforcement functions that are currently split across different regulators, all under one umbrella.
That consolidation could mean more joined-up oversight, and a shift towards proactive inspection rather than reactive enforcement. For SMEs, the message is simple: compliance isn’t just about avoiding complaints. It’s about being ready to demonstrate good practice if asked.
So what should employers do?
There’s still time before the Bill becomes law, but waiting until the last minute isn’t ideal. The direction of travel is clear. More rights, earlier protection, greater scrutiny.
Start by reviewing contracts and policies. Look at how probation is handled, whether flexible working processes are up to scratch, and whether managers are confident handling leave and dismissal in line with newer expectations.
You don’t need to solve everything overnight. But having a plan, and a bit of breathing room, will make a huge difference.
Our team at Buckles is already advising clients on how to prepare. If you’d like help reviewing your documents or training your managers, we’re here to support you.
