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The Employment Rights Bill: What We Know (and Don’t Know) So Far... Part III
This blog is the third in a three part series outlining some of the main changes and what we know so far about the updates to be introduced to UK law through the Employment Rights Bill, which is making its way through Parliament. An Amendment Paper to the Bill was published on 5 March 2025. The Bill has moved to the House of Lords for debate, and if further amendments are proposed, they will return to the Commons for approval. Some commentators have said that the Bill could receive royal assent in July, with some provisions becoming law in October 2025, though this timescale has not been confirmed.
In the final blog of our three part update on the Employment Rights Bill we will cover the new updates to family friendly rights, third party harassment and changes to statutory sick pay.
WHAT FAMILY FRIENDLY RIGHTS ARE STRENGTHENED BY THE BILL?
Pregnancy and Maternity Leave: The Bill enhances protection for pregnant employees and those on maternity leave, making it unlawful to dismiss them during pregnancy, maternity leave, or within six months of returning to work, except in specific circumstances.
Paternity Leave: Paternity leave becomes a day one right, aligning with maternity leave. This change ensures that employees can take paternity leave from the start of their employment.
Parental Leave: Parental leave, which allows up to 18 weeks of unpaid leave per child, also becomes a day one right. This enables employees to take this leave without any minimum service requirement.
Flexible Working: Flexible working requests can be refused only if "reasonable," with written explanations required. This change is likely to make it more difficult for employers to refuse such requests and may lead to an increase tribunal claims.
Bereavement Leave: The Bill introduces statutory bereavement leave as a day one right, with regulations to follow. This leave will be a minimum of one week, with specific eligibility requirements relating to the employee’s relationship with the deceased person and timings to be defined. The existing right to paid parental bereavement leave will continue.
WHAT CAN EMPLOYERS DO TO PREPARE?
The biggest change is making it unlawful to dismiss employees within six months of returning from maternity leave other than in specific circumstances, requiring policy updates and education of senior management. Other minor changes will increase employer costs, so finance teams should adjust forecasts, and employers should identify areas which family-friendly policy updates.
HOW WILL THE LAW BEEN STRENGTHENED AROUND PREVENTING HARASSMENT, SEXUAL HARASSMENT AND THE ROLE OF THIRD PARTIES?
The law around preventing harassment and sexual harassment has already been strengthened significantly. Employers have long been liable for the harassment and sexual harassment of their employees by other employees, , unless they have taken all reasonable steps to prevent it. Since October 2024, employers must take proactive steps to prevent sexual harassment, such as conducting risk assessments, taking measures to reduce any identified risks, training staff, and updating policies.
The new Bill extends employers’ liability to cover acts of harassment against their employees by third parties, reintroducing the concept of third party liability who ich was abolished in 2013. When the relevant provisions of the Bill become law employers will have to prevent harassment by third parties including customers, contractors, and the public, taking all reasonable steps to mitigate risks. This includes conducting specific risk assessments and implementing preventive measures.
WHAT STEPS CAN EMPLOYERS TAKE?
Employers should now consider the steps they could take to prevent harassment by third parties including updating anti-harassment, sexual harassment, and equality policies to include third-party harassment. Employers should prepare to conduct risk assessments for staff interactions with third parties, including general day-to-day engagement and specific events such as client dinners or conferences. Employers should also prepare to implement preventive measures such as signage, CCTV, clear reporting procedures as well as adding conduct clauses into their contracts with clients, contractors etc that commit the third party to acting in accordance with the employer’s anti-harassment policy. Other steps are for employers to train staff, especially managers, on handling third-party harassment, ensuring effective reporting mechanisms and regularly reviewing policies and risk assessments. More generally, employers should cultivate a supportive workplace culture where employees feel comfortable raising concerns and know they will be taken seriously.
WHAT HAS CHANGED IN RELATION TO STATUTORY SICK PAY?
The Bill introduces significant changes to statutory sick pay (SSP) to improve employee access. Currently, SSP is paid at a flat rate of £116.75 for up to 28 weeks of absence due to illness or injury, starting from the fourth day of absence. Only those earning above the lower earnings limit are eligible. Under the Bill, SSP will be payable from the first day of absence, and those earning below the lower earnings limit (£123 per week) will be eligible at 80% of their normal weekly earnings if this is less than the SSP rate. This change will significantly impact employers with lower-paid workers, especially part-time employees. Employers should prepare by adjusting financial projections, maintaining good absence records, and managing employee absence carefully. For businesses with higher-paid workers, the impact may be less significant, especially if employees are already paid their normal salary from day one of absence.
