How Will The Employment Rights Bill Affect Businesses?

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Employment Rights Bill

As a worker, when you signed up for your job, what was expected of you, and what role did the company take in helping to keep you safe in the workplace?

Being a worker in the UK is far from idyllic for many. Job roles may be fraught with issues around zero-hour contracts, as well as non-disclosure agreements in some settings, which can make the role of having a job feel more like a hindrance than a benefit.

A Bill was put before parliament in the UK in October 2024, with the aim of highlighting and changing some of the bigger issues that had gone unresolved in the British workplace, with the aim of adapting such practices or eliminating them altogether. Called the Employment Rights Bill, this is going to change the world of work in the UK for the better. For a quick recap, here are some of the key points to take away.

Work-Life Balance

This is an area that warrants further investigation, particularly for individuals working extended shifts, such as nurses, doctors, and police officers.

The work-life balance of UK workers ranks shockingly low among European countries. Surveys have found that when it comes to being able to step away from the workplace, the UK comes in thirteenth place. Thus, the Employment Rights Bill aims to provide workers with more flexibility in their work arrangements. For example, if a staff member is able to perform duties from home, then an employer must aim to accommodate this from day one, or they will face a penalty of over five thousand pounds. If it is not possible to offer flexible work, the employer must provide the employee with written evidence explaining why and justify why this refusal is reasonable. This is why outsourcing human resources to companies like The HR Dept can make sure businesses remain on top of new legislation, and keep a fair work-life balance for employees.

Trade Unions

It is shocking to think that even in the UK today, there are workforces that do not have access to trade unions. A typical group is fast food workers, who, despite putting in the hours, are often subject to being treated poorly by management and are in breach of their contract if they seek help from an external union.

The Employment Rights Bill aims to extend the reach of trade unions across a wider range of sectors, enabling employees to understand their workplace rights. If an employer fails to allow this or fails to comply, the Bill states that the Central Arbitration Committee (or CAC) can order them to take steps to make this access available to their staff. This is one of the more pressing matters in the Employment Rights Bill, seeking to come to fruition in Autumn 2025.

Returning From Maternity Leave

Under the current law, women have the legal right to be offered suitable alternative employment when they have informed their employer of their pregnancy. With the Employment Rights Bill, in simple terms, if you are a woman who is set to take maternity leave, or is on maternity leave, your boss is not legally allowed to make you redundant. If there is no choice but to make you redundant, your boss has to offer you a suitable alternative job. The protections of this now last longer, with women being protected up to six months after they return to work following maternity leave. The reasoning here is simple: to stop bosses from replacing mothers or pressuring them out of their jobs.

Gender Pay Gaps

It is a subject that has garnered a lot of attention over the last decade, and, despite this spotlight, issues surrounding the Gender Pay Gap appear not to have been fully resolved.

Under the current law, employers and companies with over two hundred and fifty people on their staff must report gender pay gaps. This includes the average pay gap, gaps in bonuses, the proportion of men and women on their staff, and the percentage of men and women receiving bonuses.

Under the new Employment Rights Bill, even smaller companies with one hundred or more workers must report such information and make it available to the public via their websites. This will help to shine a light on unfair pay practices and will help companies to better assess their treatment of staff.

Of course, these are just a few of the changes set to impact the UK workplace in 2025-2026. There have also been changes to zero-hour contracts, as well as modifications to diversity laws in the workplace and procedures for reporting harassment. So, get ready for some bigger and better changes in the workforce over the next twelve months.