Ban on ‘exploitative' zero-hours contracts to come into effect in 2027
Prime Minister Sir Keir Starmer has hailed the Government's flagship Employment Rights Bill, which is making its way through Parliament, as 'the single biggest upgrade to workers' rights in a generation'.
Its measures include bolstered rights to parental leave, a crackdown on 'fire and rehire' practices and the removal of the lower earnings limit and waiting period for statutory sick pay.
Under the new legislation, bosses will be also be required to offer workers a guaranteed hours contract reflecting the hours they regularly work, as well as reasonable notice of shifts and payment of shifts.
Under plans outlined in a 'roadmap' published by the Government on Tuesday, some changes will be implemented immediately after the Bill receives royal assent but others will take up to two years to come into effect.
After the legislation has passed, Conservative-era rules restricting industrial action in sectors including health and education will be abolished as the Strikes (Minimum Service Levels) Act 2023 will be instantly repealed.
New protections against dismissal for striking workers will also come into effect after the Bill makes it onto the statute books.
Changes to sick pay, protections for whistleblowers, 'day-one' paternity leave and unpaid parental leave and reforms to strengthen financial security for staff facing mass redundancies will take effect in April 2026.
In October 2026, measures to end 'unscrupulous' fire and rehire practices, tightened tipping laws aimed at ensuring workers take home a fair proportion of gratuity will be implemented, the Government said.
Measures to strengthen right of access for trade unions and protect employees from harassment are now also due to come into effect next October under the roadmap.
Finally in 2027, the Government says it will have implemented:
– Full gender pay gap and menopause action plans, which aim to support women in the workplace and will be introduced on a voluntary basis from next April
– Bereavement leave
– A ban on the 'exploitative' use of zero-hours contracts
– 'Day-one' rights to protection against unfair dismissal
– Improved access to flexible working, for example by allowing people to work from home
– Strengthened protections against dismissal for pregnant women and new mothers.
Deputy Prime Minister Angela Rayner said the Government was 'working fast' to deliver the reforms, with some due to kick in 'within months'.
Business Secretary Jonathan Reynolds said: 'By phasing implementation, our collaborative approach balances meaningful worker protections with the practical realities of running a successful business, creating more productive workplaces where both employees and employers can thrive.'
The Department for Business and Trade said that providing a 'structured timeline' would allow stakeholders to plan their time and resources to ensure they are ready for the changes.
The Government will continue to consult with 'business groups, employers, workers and trade unions' in phases on the detail of the measures, beginning this summer and continuing into the new year, it said.
Hospitality and recruitment bodies welcomed the time to prepare, while union leaders urged employers 'not to wait' for the law change before implementing the reforms.
TUC general secretary Paul Nowak said: 'It's welcome that workers will start to benefit from these long overdue changes from later this year – but this timetable must be a backstop.
'We need to see these new rights in action as soon as possible. Decent employers don't need to wait for the law to change.
'They should be working with staff and unions right now to introduce these changes as quickly as possible.'
GMB general secretary Gary Smith said: 'GMB members now know when these much-needed improvements will happen – we urge good employers not to wait; do the right thing and make these changes a reality today.'
Kate Nicholls, chief executive of UKHospitality, said: 'Clear and precise timelines on when aspects of this legislation, and the processes to deliver them, will come into force is essential, and it was important that the Government embark on providing clarity.
'There are substantial changes for businesses in the Employment Rights Bill and it's right that the Government is using the appropriate implementation periods for the most complex issues for hospitality, in order to get the details right for both businesses and workers.'
Neil Carberry, Recruitment and Employment Confederation (Rec) chief executive, said: 'This clear timeline on the Employment Rights Bill gives room for full and frank consultation on how the new rules will be structured. It also gives businesses important time to plan.
'Now we have the roadmap, ongoing and meaningful engagement will be critical to ensuring new regulations allow the flexibility workers and companies value to remain.'
The Tories said the roadmap amounted to 'another U-turn' and an admission from the Government that 'they have got it wrong again.'
Shadow business secretary Andrew Griffith said: '273,000 people have lost their jobs since the autumn budget and this trade union inspired Bill is going to make that even worse meaning more children growing up in workless households. Labour must throw it out and start again.
'The one thing Reynolds got right is that it is the Conservatives who are opposing his bad ideas. We are giving business a voice and saying what they say privately but that he refuses to listen to.'
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