Day-one rights
Workers will qualify for protection against unfair dismissal from day one – a benefit for 9 million people. Previously, employees must have been at their place of work for at least two years in order to qualify.
There will also be day-one rights for paternity leave and unpaid parental leave. Maternity leave is already a day-one right. A full review of all parental-leave rights is promised alongside the bill.
Sick pay
There will be a universal entitlement to sick pay from the first day of illness for employees. Workers will get rights to sick pay from day one, rather than from day four.
Statutory sick pay is £116.75 a week and can be paid for up to 28 weeks, as long as the employee is earning an average of at least £123 a week. The government says this will be “strengthened” by removing the lower earnings limit for all workers; though the rate could be lower for workers who aren’t eligible for sick pay at all.
Probation
The government will consult on a statutory probation period for new hires; employees will still be able to claim for unfair dismissal. Ministers say this means there will be a “lighter touch” approach to letting an employee go during the probation period if the role is not working out.
The probation period will be consulted on and introduced in autumn 2026 to coincide with the enforcement of the new rights. The government now favours a limit of nine months– lengthened after pressure from businesses – which caused some disquiet among trade unions which had asked for a limit of six months.
Zero-hours contracts
More than 1 million people on zero-hours contracts will gain guaranteed working hours if they want them. Those workers, along with those on low-hours contracts, will have the right to a guaranteed-hours contract if they work regular hours over a defined period, which Labour’s original proposal said would be 12 weeks. Employees can also request to remain on zero-hours contracts if that is what they would prefer.
Fire and rehire
Fire and rehire practices will be banned in all but the most extreme circumstances, meaning employers cannot sack employees and rehire them on worse terms and conditions. There will be carve-outs, however – a move that has caused consternation from unions. Businesses at risk of complete collapse may be able to alter terms and conditions if it is the difference between going bust.
Flexible working
The law will change to make flexible working the default “where practical”, and action plans must be drawn up to address gender pay gaps and to support female employees through menopause.
There will also be stronger protections against dismissal during pregnancy and after returning to work from maternity leave.
Enforcement
The bill will establish an enforcement body called the Fair Work Agency, bringing together existing enforcement bodies, which will also enforce rights such as holiday pay. The remit of the new body is not likely to be fully clear until all the measures in the bill have been consulted on or enacted.
Minimum wage
The government plans to change the remit of the Low Pay Commission so it must take into account the cost of living when setting the minimum wage and remove all the age bands that set lower minimum wage for younger staff. It will mean a pay rise for hundreds of thousands of young workers.
Are you irritating in RL? (light hearted)
