Labour has unveiled a new bill in a bid to reform workers’ rights in the UK.
With 28 new measures, the Employment Rights Bill could shake up the way Brits work – although most of the proposals are not scheduled to come in until autumn 2026.
As the new government tries to present itself as both pro-worker and pro-business, here’s what you need to know.
What’s in it?
Unfair dismissal
The two-year qualifying period for protections from unfair dismissal will be removed. Instead, workers will have those rights from their first day in the new role – a proposal which will impact the nine million workers in the UK who have been with their employers for less than two years.
But, probation could be extended to nine months, where workers can be sacked without a full process – and unions wanted it to be limited to six months.
Protection for pregnant women and new mothers
Women will be protected from dismissal while pregnant, on maternity leave and during their first six months of returning to work.
Paternity leave
Instead of being eligible from week 26 after starting a new job, fathers can get leave from day one of employment – it means around 30,000 new parents will now be eligible.
Unpaid parental leave
Like with paternity leave, parents will be eligible from their first day on the new job, instead of after a year – a whopping 1.5 million parents will be entitled to claim this.
Unpaid bereavement leave
Employees will be able to claim this from their first day of working.
Flexible working
Employers will be expected to consider any flexible working requests from a workers’ first day of working and, crucially, agree to it – unless bosses can prove it is unreasonable.
Statutory sick pay (SSP)
All workers will be allowed to claim SSP from their first day of illness instead of from the fourth day.
Lower earnings limit for SSP
At the moment, anyone earning less than £123 per week cannot claim SSP. The government wants to replace that with a lesser level of sick pay for lower earners.
Zero-hour contracts
Employers will have to provide a guaranteed hours contract to workers based on the hours they have already worked during a 12-week period. Bosses would have to give employees on these contracts “reasonable” notice of any shift changes and compensation if it is cancelled or ends earlier than expected.
Fire and rehire banned
Employers will not be able to get rid of employees and then rehire them on worse terms and conditions – apart from in a few situations, like if it saves a business from going bust.
What’s missing?
Labour’s election promise to “make work pay” did not feature in the bill, and neither does the “right to switch off”, protecting workers from being contacted outside of hours.
The government says it will look at those for further reform, along with a commitment to end pay discrimination and reviews into parental leave and carer leave systems.
When might the new bill come into effect?
Most of the changes will not come into effect before autumn 2026, because the proposals need to go through consultation.
What is driving these changes?
The government wants to be seen as pro-worker and pro-business while also “driving growth in the economy”, according to the gov.uk website.
The government noted that one in five UK businesses (with more than 10 employees) has reported staff shortages.
Labour also has to deliver on their election promises to give workers rights in a new from day one.
Deputy PM Angela Rayner said the UK has “out of date employment laws” which are “holding our country back and failing business and workers alike”.
She said: “Too many people are drawn into a race to the bottom, denied the security they need to raise a family while businesses are unable to retain the workers they need to grow.
“We’re raising the floor on rights at work to deliver a stronger, fairer and brighter future of work for Britain.”
Has there been any backlash?
Tory shadow business secretary Kevin Hollinrake said: “Businesses and the economy needs certainty not the threat of being sent back to the 1970s, unleashing waves of low threshold, zero warning strikes, driving down growth and slowing productivity.”
The policy chair at the Federation of Small Businesses, Tina McKenzie, said that it was a “rushed job, clumsy, chaotic and poorly planned”, which would leave smaller companies struggling.
General secretary of the GMB union Gary Smith said the bill was a “groundbreaking first step to giving workers the rights they’ve been denied for so long”.
He said: “The legislation must be watertight and without loopholes that could be used by those wanting to delay the rights workers so desperately need.”
Has there been any support?
However, the CEO of the Co-op, Shirine Khoury-Haq, said his company supported the government’s ambitions to strengthen rights for workers.
Meanwhile, the TUC General Secretary Paul Nowak 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. ”