Written by Rebeca Moss
12 Dec 2024
Employment Rights Act 2024-25: How HR teams should prepare
Eden Scott is a team of recruitment professionals. While the information provided here is accurate to the best of our knowledge, it is intended for general guidance only. To ensure compliance with current and upcoming legislation, employers can consult with an HR or employment law specialist.
Big changes are expected to UK employment law in 2025. The Employment Rights Bill 2024-25 was passed on 10th October 2024, and is an update to existing labour laws. When it comes into effect, the new law will require significant updates to employers’ recruitment and HR practices. Find out what to expect.
Unfair dismissal
Employees will be protected from unfair dismissal from day one of their employment (currently, they must work at a company for more than two years to qualify for this protection).
A nine-month probation period with more lenient dismissal rules is also being considered.
What HR needs to know: HR teams will need to update their termination policies to avoid unfair dismissal practices. Refreshing your company’s understanding of what constitutes fair and unfair dismissal now would be beneficial, to avoid making errors if and when the changes come into effect.
Now is also a good time to update the conditions of your probation period, so that unsuitable employees don’t slip through the net.
Read more: Unfair dismissal changes: How employers should prepare
Flexible working
Currently, all UK employers must consider an employee’s request for flexible working from day one of their employment. The UK Employment Rights Bill goes further, requiring employers to justify their grounds for refusing flexible working in writing. The aim is to improve transparency and improve fairness for workers.
How HR should prepare: Now is a good time to assess the feasibility of a variety of flexible working measures. When the new legislation comes into effect, you will need to demonstrate how you have tried or at least carefully considered how to accommodate an unfeasible flexible working request.
Read more: Changes to flexible working
Family leave
Employees currently need to have completed 26 weeks of continuous service to qualify for paternity leave, and a year of service for parental leave. The UK Employment Rights Bill makes this a day-one right.
In addition, paternity leave currently needs to be taken before shared parental leave and pay can begin. The Employment Rights Bill will remove this requirement so parents can take paternity leave after their shared parental leave.
Further, the bill will expand statutory bereavement leave entitlement beyond parental bereavement leave (currently the only statutory entitlement for employees that are grieving). This will allow employees to take leave if they are grieving the loss of a loved one that is not their child.
How HR should prepare: These changes to leave and pay entitlement are significant. HR teams should prepare by creating contingency plans for new employees taking parental leave, including parental leave cover strategies and recruitment practices.
Read more:
Maternity leave
Paternity leave
Shared parental leave
Adoption leave
Zero hours contracts
The Employment Rights Act will require employers to offer employees a contract with guaranteed hours if the employer regularly works the same hours over a set period. It also obliges employers to offer reasonable notice of shifts.
The aim is to stop exploitative working practices, including last-minute requirements to work (or being ‘on call’ without remuneration).
How HR should prepare: While the bill doesn’t mandate an outright ban on zero hours contracts, it does change the circumstances in which zero hours contracts can be used. HR teams should prepare by carefully reviewing required working hours, and create more effective plans for shift cover.
Read more: Zero hours contracts: Are you compliant?
Fire and rehire
Currently, if an employer wants to make a change to an employee’s contract, and the employee refuses, the company can fire the employee and rehire them under the new contract conditions. Alternatively, they can fire the employee and appoint a new worker to the role with the new contract conditions.
Under the new Employment Rights Act, ‘firing and rehiring’ will automatically be classed as unfair dismissal. The exception would be in circumstances where changes to a contract are necessary to avoid financial hardship for the business.
How HR should prepare: Hire with the future in mind. HR teams should pay close attention to role descriptions and outline responsibilities that align with the business’s trajectory.
Read more: An end to ‘fire and rehire’: What employers need to know
Sick pay
Businesses will be required to pay statutory sick pay from day one of the employee’s sick leave, rather than the current three day qualifying period. Additionally, the earnings threshold to be eligible sick pay will be removed, so that more workers have access to sick pay.
How HR should prepare: HR teams should work with finance teams to budget for additional sick payments.
Minimum wage and pay equality
While not part of the Employment Rights Bill, the government has also introduced an increase to the national minimum wage, effective from 1st April 2025.
How HR should prepare: HR teams should work with finance teams to budget for higher minimum wage payments.
Read more: National Living Wage and National Minimum Wage
2 Unfair dismissal changes: How employers should prepare
3 Preventing sexual harassment: Are you compliant with the new law?
4 Workplace discrimination: Equality Act 2024 update
Big changes are expected to UK employment law in 2025. The Employment Rights Bill 2024-25 was passed on 10th October 2024, and is an update to existing labour laws. When it comes into effect, the new law will require significant updates to employers’ recruitment and HR practices. Find out what to expect.
What is the Employment Rights Bill 2024-25?
The Employment Rights Bill 2024-25 proposed changes to existing labour laws that aim to create fairer working conditions and reduce opportunities for exploitative practices. The passed bill (which will become an act when it comes into effect) focuses on worker’s rights, including changes to pay, contracts and working patterns.When will the new Employment Rights Act come into effect?
The changes to employment law will likely come into effect in 2026.What changes will the Employment Rights Act make to UK employment law?
The Employment Rights Act will bring about significant to worker’s rights, which employers and HR teams must be aware of. These include:Unfair dismissal
Employees will be protected from unfair dismissal from day one of their employment (currently, they must work at a company for more than two years to qualify for this protection).
A nine-month probation period with more lenient dismissal rules is also being considered.
What HR needs to know: HR teams will need to update their termination policies to avoid unfair dismissal practices. Refreshing your company’s understanding of what constitutes fair and unfair dismissal now would be beneficial, to avoid making errors if and when the changes come into effect.
Now is also a good time to update the conditions of your probation period, so that unsuitable employees don’t slip through the net.
Read more: Unfair dismissal changes: How employers should prepare
Flexible working
Currently, all UK employers must consider an employee’s request for flexible working from day one of their employment. The UK Employment Rights Bill goes further, requiring employers to justify their grounds for refusing flexible working in writing. The aim is to improve transparency and improve fairness for workers.
How HR should prepare: Now is a good time to assess the feasibility of a variety of flexible working measures. When the new legislation comes into effect, you will need to demonstrate how you have tried or at least carefully considered how to accommodate an unfeasible flexible working request.
Read more: Changes to flexible working
Family leave
Employees currently need to have completed 26 weeks of continuous service to qualify for paternity leave, and a year of service for parental leave. The UK Employment Rights Bill makes this a day-one right.
In addition, paternity leave currently needs to be taken before shared parental leave and pay can begin. The Employment Rights Bill will remove this requirement so parents can take paternity leave after their shared parental leave.
Further, the bill will expand statutory bereavement leave entitlement beyond parental bereavement leave (currently the only statutory entitlement for employees that are grieving). This will allow employees to take leave if they are grieving the loss of a loved one that is not their child.
How HR should prepare: These changes to leave and pay entitlement are significant. HR teams should prepare by creating contingency plans for new employees taking parental leave, including parental leave cover strategies and recruitment practices.
Read more:
Maternity leave
Paternity leave
Shared parental leave
Adoption leave
Zero hours contracts
The Employment Rights Act will require employers to offer employees a contract with guaranteed hours if the employer regularly works the same hours over a set period. It also obliges employers to offer reasonable notice of shifts.
The aim is to stop exploitative working practices, including last-minute requirements to work (or being ‘on call’ without remuneration).
How HR should prepare: While the bill doesn’t mandate an outright ban on zero hours contracts, it does change the circumstances in which zero hours contracts can be used. HR teams should prepare by carefully reviewing required working hours, and create more effective plans for shift cover.
Read more: Zero hours contracts: Are you compliant?
Fire and rehire
Currently, if an employer wants to make a change to an employee’s contract, and the employee refuses, the company can fire the employee and rehire them under the new contract conditions. Alternatively, they can fire the employee and appoint a new worker to the role with the new contract conditions.
Under the new Employment Rights Act, ‘firing and rehiring’ will automatically be classed as unfair dismissal. The exception would be in circumstances where changes to a contract are necessary to avoid financial hardship for the business.
How HR should prepare: Hire with the future in mind. HR teams should pay close attention to role descriptions and outline responsibilities that align with the business’s trajectory.
Read more: An end to ‘fire and rehire’: What employers need to know
Sick pay
Businesses will be required to pay statutory sick pay from day one of the employee’s sick leave, rather than the current three day qualifying period. Additionally, the earnings threshold to be eligible sick pay will be removed, so that more workers have access to sick pay.
How HR should prepare: HR teams should work with finance teams to budget for additional sick payments.
Minimum wage and pay equality
While not part of the Employment Rights Bill, the government has also introduced an increase to the national minimum wage, effective from 1st April 2025.
How HR should prepare: HR teams should work with finance teams to budget for higher minimum wage payments.
Read more: National Living Wage and National Minimum Wage
Further reading
1 GUIDE: Unfair dismissal - How to protect your business2 Unfair dismissal changes: How employers should prepare
3 Preventing sexual harassment: Are you compliant with the new law?
4 Workplace discrimination: Equality Act 2024 update
