The Government has today introduced the Employment Rights Bill into Parliament. A landmark piece of legislation which it calls the “biggest upgrade to rights at work for a generation”.

The Bill will have a major impact on both businesses and their employees, with new rules coming forward around pay, contracts, and flexible working.

Much of the reform will not be delivered until autumn 2026 and there will be several important consultation periods in the next two years. It will be crucial for businesses to engage now as important decisions on the detail remain to be made and the policy is not yet finalised.

If your organisation conducts good employment practices, then your public affairs strategy should seek to capitalise on the opportunity to share your learnings with the Government and shape a piece of legislation which delivers for businesses and workers.

What is included in the Bill?

The Bill is a mammoth piece of legislation covering a wide breadth of changes to workers’ rights. Major proposals include ending “one-sided flexibility”, introducing “family friendly rights”, encouraging “fair pay”, and supporting “equality at work”.

One-sided flexibility:

• The Bill promises to end ‘exploitative’ zero-hour contracts and eliminate the practice of ‘fire and rehire’. The controversial caveat ‘exploitative’ has yet to be clearly defined, with unions concerned it will lead to loopholes in the legislation.
• The Government’s intention is for employers to offer workers a guaranteed contract once they have completed 12 weeks, with their hours determined by how much they worked over that period. The workers must also receive ‘reasonable’ notice if their shifts change, and compensation for any cancellations.
• An expansion in day one rights including the ability to request flexible working arrangements immediately. Bosses are required to prove the request is unreasonable if they wish to deny it. There will be further debate around what is classified as unreasonable.
• Workers will also have immediate access to protections from unfair dismissal, with the Government set to take away the current two-year qualifying period.
• A statutory probation period for new hires is also under consideration, with a fierce debate raging around its duration. Expected to last for a period between six-months to a year, both unions and businesses are pulling in different directions, with the Government preferring a nine-month compromise.

Family friendly rights:

• Again, the Government proposes additional day one rights, including the immediate ability to take paternity leave (down from 26 weeks), immediate eligibility for unpaid parental leave (down from one year) and unpaid bereavement leave.
• Increased protections from dismissal for pregnant women and new mothers.

Fair pay:

• Statutory sick pay for workers from day one of an illness (down from the fourth day) and the removal of the earnings limit (down from the current £123 per week). There will instead be a reduced level of sick pay for low earners.
• The removal of age bands within the minimum wage, which will also now factor in the cost of living when calculated.

Equality at work:

• Large businesses will need to outline plans to reduce the gender pay gap and provide employees with support through the menopause.

What is not included in the Bill?

While the Bill contains plenty of reforms, several contentious proposals in Labour’s pre-election plan to “make work pay” have not been brought forward.

These reforms include the much discussed ‘right to switch off’ which would stop businesses contacting employees out of hours, mandatory ethnical and disability pay gap reporting, a new single employment status system for workers, and changes to the parental and carers leave systems.

Business should not assume these proposals are dead in the water. The Government will consult on all of them independently from the Bill before the deciding whether or not to take them forward.

Who is responsible for the Bill?

While the plan to ‘make work pay’ was originally driven forward in opposition by Deputy Prime Minister, Angela Rayner, in government it is now being spearheaded by the Department for Business and Trade, led by Jonathan Reynolds and Justin Madders. This shift as been welcomed by employers, with Reynolds a well-regarded figure for his willingness to speak to businesses.

How can you engage with the Bill?

While the Bill has been brought forward in Parliament this week to ensure that Labour has met its promise to introduce the legislation within the 100 days of entering government, this is only the beginning of a long process. The Bill is not expected to pass into law until summer next year, with the majority of reforms to begin in autumn 2026.

In the intervening period there will be myriad consultations, roundtables and one-to-one meetings to be had, as ministers and civil servants progress the finer details. For the Government, the Bill represents a high-risk piece of legislation as it seeks to toe a fine line between being pro-worker and pro-business. With trade unions and employers all pulling in different directions the potential for reputational damage and disagreement is high.

At stake is the central mission of the government, improved economic growth. While Labour believes greater employment flexibility for workers and businesses can boost the labour market and stimulate growth, it is a delicate balancing act. Any hasty or misjudged legislation could result in negative outcomes for both employers and employees, such as increased costs, a market slowdown, or job losses. Labour is in listening mode and the time to engage is now.

PLMR is a leading communications agency that provides organisations with support around public affairs, government relations, and strategic communications. Our expertise spans sectors across the UK economy, including energy, health, and education, and we deliver outstanding value and results for clients. If you are interested in discussing engagement around the Employment Rights Bill please contact alex.wray@plmr.co.uk.