Employment Law - A review of 2024 and beyond

It has been an exciting year for employment law developments, with several widely reported proposed changes being introduced. Through their new ‘Employment Rights Bill’, the new Labour government has recommended the most significant updates to employment rights for a generation, but what does that mean for you as an employer?

We’ve provided a quick summary of some of the more significant proposals and a reminder of the duty for employers to actively prevent sexual harassment in the workplace, which has been in force since 26 October 2024. Remember: changes 1-7 are unlikely to come into force until the Autumn of 2026, but it’s worth keeping these in mind as we move through the next year.

1. Protection from Day One

A major change proposed is giving employees the right to make unfair dismissal claims from day one of employment instead of after two years. However, during an initial period (expected to be around six to nine months), a “fair procedure” won’t be required if dismissal is necessary. This approach attempts to balance protection for new hires with flexibility for businesses.

Consider: If this change goes through, hiring and onboarding may need adjustments to ensure performance evaluations are carried out early with appropriate steps taken thereafter.

2. Zero-Hours Contracts with More Choices

The Bill stops short of banning zero-hours contracts but gives workers the option to move to regular contracted hours if they want to. After the reference period (12 weeks), employers would be required to offer guaranteed hours based on the average hours worked over that reference period.

Consider: For those who rely on zero-hours arrangements, it’s a good time to start tracking hours closely and think about how you’ll offer regular hours if needed.

3. Flexible Working Requests on Day One

Employees are already allowed to request flexible working from day one of employment. This is not, therefore, a proposal to make flexible working the “default” as Labour had pledged, but it does strengthen existing rights. Employers can only refuse a request with a clear, reasonable justification, like cost burden or quality impact.

Consider: You might want to start evaluating roles to see where flexible working might be offered from the start. Having a flexible work policy in place that’s ready for these requests could ease the transition.

4. Statutory Sick Pay (SSP) from Day One

The Bill suggests SSP should be payable from day one of sickness, not day four. This means employers may face higher short-term SSP costs.

Consider: Plan for potential increases in sick pay costs and consider budgeting for it. Health and wellness programs could also help reduce absence.

5. Updated Leave Policies

Under the Bill, “Parental Bereavement Leave” will broaden to “Bereavement Leave,” allowing employees to take time off after the death of other loved ones. Paternity leave eligibility is also becoming a day one right, instead of requiring six months of employment.

Consider: Start reviewing your leave policies now to be sure they’re ready to align with the new rules on bereavement and paternity leave.

6. Fire and Rehire Restrictions

If passed, new rules would prevent employers from firing and rehiring employees on less favorable terms unless it’s necessary to prevent business failure.

Consider: If you’re planning on changing employment terms, start thinking about alternative negotiation options rather than a fire-and-rehire approach.

7. Increased Protections for New and Expecting Mothers

Employers will be limited in their ability to dismiss employees returning from maternity leave for up to six months after they’re back, except in special cases.

Consider: It’s a good time to review return-to-work support for new parents and consider any adjustments to ensure compliance with these changes.

8. Proactive Prevention of Sexual Harassment – IN FORCE SINCE 26 OCTOBER 2024

This new duty emphasises that employers must take preventative measures, which may include training, risk assessments, and clear policies on sexual harassment. A code of practice will provide guidance to employers on meeting this duty.

Consider: Look at current training and reporting structures on harassment. Clear policies and open discussions could make employees feel more supported and confident in reporting concerns.

These changes aim to promote safety, flexibility, and clarity for employees and employers alike. While most are expected to take effect no sooner than Autumn 2026, a little planning and policy adjustment now could save time and streamline compliance later.

The changes outlined above underscore the need for employers to proactively address workplace fairness, inclusivity, and safety. MBM Commercial's Employment Team is here to help guide you through these transitions, to ensure compliance and support a safe, respectful, and fair workplace environment for all.

Check out our recent blogs on the Employment Rights Bill and the new Duty to Prevent Sexual Harassment for more information.