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Employment Rights Bill 2024: What do employers need to know and how to stay compliant?

Apr 4, 2025 | Accounting, Business Advice, Local Business, News

Kristina Madesen

Employment Rights Bill 2024: What do employers need to know and how to stay compliant?

The Employment Rights Bill 2024 introduces one of the most significant shifts in UK employment law in recent years. Aimed at improving fairness, flexibility, and protections for employees, the bill presents important changes that every business owner should understand – especially those with staff or currently recruiting.

At BAS Associates Ltd (BAS), we work with businesses every day to help them stay ahead of changes like this, offering tailored advice and free access to expert HR guidance for all our clients. Below, we’ve broken down the key updates, where the bill stands right now, and how to prepare effectively.

Has the Employment Rights Bill 2024 been passed yet?

At the time of writing, the Employment Rights Bill 2024 has not yet become law. It was introduced as a Private Members’ Bill and is currently progressing through the UK Parliament’s legislative process.

The Bill has passed its second reading in the House of Commons (March 2024) and is due to move through several more stages, including:

  • Committee Stage
  • Report Stage
  • House of Lords consideration
  • And finally, Royal Assent before becoming law

While we don’t yet have a confirmed date for implementation, it’s clear that momentum is building behind this legislation and many of the proposals are aligned with ongoing policy discussions. Forward-thinking employers would be wise to prepare in advance, particularly around recruitment, staff management, and financial planning.

To stay up to date, you can follow the UK Parliament’s official Bill tracking page or subscribe to updates from trusted business news sources.

So, what are the key changes in the Employment Rights Bill?

What are ‘day-one’ employment rights?

One of the most notable changes proposed is the introduction of day-one rights for employees. This includes protection against unfair dismissal, access to paternity and parental leave, and the right to request flexible working – all from the first day of employment.

For employers, this changes how probation periods are structured and managed. Contracts may need reviewing to clearly define the terms of probation and how dismissal would be handled fairly within this framework.

 

How are zero-hours contracts and flexible working impacted?

The Bill also aims to tackle ‘one-sided flexibility’, particularly in relation to zero-hours contracts. Employers would be expected to give reasonable notice of shifts and compensate workers for last-minute cancellations. Employees may also gain the right to request more predictable hours.

If your business relies on casual labour or irregular shifts, now is a good time to revisit your contracts and shift planning tools. Ensuring you can give fair notice and justify shift patterns will be key to avoiding future disputes.

 

Is ‘fire and rehire’ still allowed?

A further significant proposal is the restriction of so-called ‘fire and rehire’ practices. Employers may no longer be able to dismiss and re-engage employees purely to force through changes in terms and conditions, unless there’s a genuine business necessity and no reasonable alternative.

This means that any future changes to employment contracts should be approached with care. Consulting employees and working collaboratively will help you avoid claims of unfair treatment and support a more stable, loyal workforce.

 

What are the new rules around workplace harassment and inclusion?

Under the bill, employers would have a statutory duty to prevent sexual harassment, including incidents involving clients or third parties. There’s also a push for more inclusive practices such as action plans around gender pay gaps and increased support for employees experiencing menopause.

These changes reflect the growing expectation that employers create safe, inclusive, and supportive workplaces. It may be worth reviewing your policies, training programmes, and reporting procedures to ensure they are up to date and comprehensive.

 

How is Statutory Sick Pay (SSP) changing?

The proposals include making Statutory Sick Pay (SSP) more accessible, by removing the Lower Earnings Limit and the waiting period, meaning employees would receive SSP from day one of illness.

Employers should consider the potential financial impact of this, particularly in sectors with frequent short-term absences. It’s also wise to review your absence policy and forecast the cost of expanded SSP eligibility to help plan more effectively

 

What does this mean for BAS clients?

We know that running a business involves juggling many plates and staying compliant with ever-changing employment law can feel overwhelming. That’s why all BAS Associates clients have access to a free HR support helpline.

If you haven’t already made use of our free HR support line you can contact your client account manager and we’ll get access organised for you.

Our Payroll team are also here to help you plan ahead for SSP and shift-related compensation.

Even if the Bill isn’t passed in its current form, we expect many of its proposals to influence future changes so getting ahead of them now will likely save you time, money, and hassle further down the line.

Where can I go for more advice?

Alongside our own support, there are other reliable sources of HR advice available to you:

  • ACAS Employer Helpline: 0300 123 1100
  • GOV.UK – For official employment law updates
  • Your BAS client account manager – For tailored, practical support

What should I do now?

If you employ staff or plan to hire in 2024, we recommend:

  • Reviewing your HR documentation and contracts
  • Ensuring onboarding and probation policies reflect new expectations
  • Updating absence policies in line with SSP changes
  • Preparing for fairer shift planning and predictable hours
  • Speaking to us about how best to prepare for what’s ahead

 

Stay Informed. Stay Compliant. Stay Confident.

At BAS, we’re more than accountants – we’re your business partners. We help clients navigate change with confidence, ensuring you’re protected, prepared, and positioned for growth.

💼 Need HR help or want to stay informed as the Bill progresses? Contact your BAS account manager today to request your HR support access code or arrange a business planning session.

➡️ Visit www.basassociates.co.uk to find out more about our services.

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