The Employment Rights Bill, Labour’s Manifesto and What They Mean for Your Business
Employment law in the United Kingdom is going through its biggest shake up in years. Labour’s Make Work Pay plan and New Deal for Working People are now being delivered through the Employment Rights Bill. For employers, the politics matters far less than the practical question. What do I need to change in my contracts and HR processes to stay safe
This article explains what is really happening, where the risk sits for employers and the steps you can take now to prepare.
What has actually happened to unfair dismissal rights
Labour originally promised that protection from unfair dismissal would become a genuine day one right, as part of its wider package of day one protections. The Labour Party
That position has now changed. Following pressure from business groups and a stand off between the House of Commons and House of Lords, the government has dropped the idea of day one unfair dismissal altogether. Instead, the Employment Rights Bill will reduce the qualifying period from two years to six months. Make UK+3Pinsent Masons+3Passle+3
In practice this means:
Ordinary unfair dismissal claims will usually be possible after six months’ service, not two years.
Day one protections remain in place for discrimination, whistleblowing and other automatically unfair reasons. Those rights have always been day one.
The new six month qualifying period will be locked into primary legislation, so future governments cannot quietly move it back up without a full Act of Parliament. BRC+1
For employers, the key message is simple. Dismissing people during probation will carry a much higher risk than it did under the two year regime. You will need clear expectations, proper reviews and a basic paper trail, even for newer staff.
Which day one rights are still coming
Although the government has retreated on day one unfair dismissal, other day one rights are still expected to go ahead, including: Thompson's Trade Union Law+3The Guardian+3The Guardian+3
Day one rights to statutory sick pay.
Day one rights to paternity leave and stronger family leave protections.
A tougher framework for zero hours and low hours work, including predictable working patterns and cancellation pay. Shoosmiths+4GOV.UK Assets+4Harding Evans Solicitors+4
Taken together, these measures will change the everyday HR landscape far more than one headline pledge about unfair dismissal. They affect how you cover absence, how you schedule work, how you use casual staff and how you deal with new starters.
Zero hours work, predictable hours and cancellation pay
The Employment Rights Bill is designed to clamp down on what Labour describes as one sided flexibility. The focus is on ending the most exploitative forms of zero hours arrangements, rather than banning every kind of flexible contract.
Under the current proposals, employers can expect:
A right for zero hours staff to request a predictable working pattern after a relatively short period, for example after 26 weeks of work. Deel+1
A requirement to match contracts to the hours that people actually work, rather than leaving them on paper zero hours indefinitely. Brightmine US+1
A legal obligation to give reasonable notice of shifts and to pay compensation where shifts are cancelled, shortened or moved at very short notice. GOV.UK Assets+2Brightmine US+2
If you rely on casual or variable hours staff, you will still have flexibility. However the days of booking people the night before, cancelling shifts at the last minute and expecting that to be cost free are coming to an end.
Key risk areas for employers
For most small and medium employers the risk is not a single Act of Parliament. The risk is a mix of old templates, informal HR practices and decisions that no longer fit the new rules.
The main pressure points are likely to be:
Probation and dismissal
With a six month qualifying period, dismissing someone at month four or five without any warnings or documented concerns will be much harder to justify. Employers will need:
Clear probation clauses that explain how performance will be reviewed and extended.
Timetabled check ins and simple notes of concerns.
Fair, consistent treatment between staff in similar situations. Sky News+3Carter Lemon Camerons+3Nelsons+3
Casual staff and zero hours arrangements
Relying on outdated zero hours contracts that do not reflect actual working patterns will become risky. Employers should expect more challenges around worker status, hours and pay when shifts are cancelled. Harding Evans Solicitors+2Brightmine US+2
Sick pay and family leave
If sick pay and certain family rights move to a genuine day one footing, then refusal of these rights for new starters will be much easier to challenge. Policies will need to be updated and managers will need clear guidance on what can and cannot be refused. The Guardian+2The Guardian+2
Workplace culture and union activity
Labour’s programme also aims to make it easier for trade unions to access workplaces and organise.
Even in non union environments, you are likely to see more confidence among workers to question contracts, rotas and dismissal decisions.
Practical steps you can take now
You do not need to rewrite everything overnight. However the employers who move early will be in a much stronger position when the new rules come into force.
sensible starting list might look like this.
Review contracts and handbooks
Check probation clauses, notice periods, sickness and family leave sections, zero hours wording and any references to qualifying periods. Flag anything that assumes a two year unfair dismissal rule.Audit your use of zero and low hours staff
List who is on paper zero hours, who is actually working regular patterns and how you currently cancel or change shifts. Compare that reality against the new predictable working pattern and cancellation pay concepts.Tighten your documentation
Make sure you have simple, usable templates for probation reviews, informal warnings and formal warnings. Managers need tools they will actually use, not complex forms that sit on a shared drive.Train your managers
Give line managers a short, practical briefing on the key changes. Focus on how to handle new starters fairly, when to ask HR for help and how to avoid casual decisions that could look unfair in a tribunal.Plan your budget
Build in realistic assumptions for the cost of higher minimum standards, especially around sick pay, guaranteed hours and cancellation payments. The sooner you plan, the fewer nasty surprises you will have later.
Where Holly Blue fits in
The Employment Rights Bill is not just a legal story. It is a commercial and cultural shift in how work is organised in the United Kingdom.
Holly Blue helps employers turn that shift into a clear, manageable action plan. That can include:
A fixed price review of your contracts, handbook and HR templates against the new regime.
Updated probation, zero hours and predictable hours wording that reflects the Bill but still gives you sensible flexibility.
Practical training for owners and managers on how to implement the changes without tying the business in knots.
If you employ people in the United Kingdom and you are unsure where to start, the safest step is to get a simple, honest risk review and a prioritised list of changes. That way you are not reacting to headlines or political noise. You are quietly getting your house in order before the new rules take full effect.