Preparing for the new UK Employment Rights Bill: A Guide for Employers of Casual Staff
The UK is set to implement the most significant overhaul of employment law in decades. The Employment Rights Bill, introduced by the Labour government, aims to provide greater protections for workers, particularly those on casual or zero-hours contracts.
With this, big changes regarding shift management, sick pay, and unfair dismissal claims are coming. For employers, especially those in sectors like tourism, hospitality and any that rely heavily on casual staff, it's important to understand these changes and prepare accordingly.
UK Employment Rights Bill - 6 Key Changes Affecting Casual Workers
Guaranteed Hours for Zero-Hours Workers
Under the new legislation, workers on zero-hours contracts who have been working for a consistent period will have the right to request a contract with guaranteed hours. Employers will be required to change their contract if the worker has been performing regular work over a defined period, which is expected to be 12 weeks. The change aims to provide workers with a more predictable income and increased job security. However, it’s not the end of zero-hour contracts as employees will still be able to request one if that is their preference.
Reasonable Notice Required of Shifts, Shift Changes and Cancelled Shifts
The Bill will introduce a new right to reasonable notice of a shift that an employee is expected to work. The Government hasn’t said what the length of reasonable notice will be yet, but they want to make it fair for both sides. In addition, employees will be entitled to proportionate pay if shifts are cancelled at short notice, or if the shift hours are reduced or moved without reasonable notice. They promise to do this while retaining flexibility for employers in how they manage their workforce.
Unfair Dismissal Protection from Day One
Currently, employees must have two years of continuous service to claim unfair dismissal. The proposed new law will remove this qualifying period, giving all employees protection from their first day of employment. However, a statutory probationary period, likely up to nine months, will be introduced during which a lighter dismissal process can be followed.
Enhanced Leave and Sick Pay Rights
The bill proposes making Statutory Sick Pay a day-one right and removing the current waiting period of three days. At the moment, SSP is only paid for the first three working days you are off sick if you received it within the last eight weeks, and this must have included a three-day waiting period before you were paid the original SSP.
Additionally, paternity leave, unpaid parental leave, and bereavement leave are all expected to become day-one entitlements.Ban on 'Fire and Rehire' Practices
Employers will be prohibited from dismissing employees and then re-engaging them on less favourable terms, except in very limited circumstances where there is no viable alternative. This measure seeks to prevent exploitative practices and ensure fair treatment of workers.
Establishment of the Fair Work Agency
A new statutory body, the Fair Work Agency, will be created to enforce employment rights, including those related to holiday pay and minimum wage. The agency will have inspection powers and the authority to impose penalties for breaches, ensuring greater accountability for employers. Having staff management software and automated rules and triggers for all of these changes will help ensure compliance with all these new rules.
3 Ways to Prepare for the Upcoming Employment Rights Changes
Audit Your Workforce
Identify which roles are currently filled by zero-hours or casual workers. Assess whether these positions involve regular hours that could qualify for guaranteed contracts under the new law. The government website has more information to help guide you. When you know how big of an adjustment this will be for your business, you can start planning accordingly.
If the changes will affect a large portion of your staff, you will want to conduct training for managers. Also, be sure to keep your staff informed when the dates and finer details are announced. These changes were made to improve your employees' working lives, so they should be excited to hear about them. The fact that you have already considered them and made the relevant changes will give your staff reassurance in you as a company.
Review Shift Management Processes
Are your existing shift management processes robust enough to stay compliant with the upcoming changes and any audits that may follow? If you fall behind on shift updates, it could become a costly issue, with the incoming need to pay out for late changes and shift cancellations.
Also, considering that an employee can bring an employment tribunal campaign for up to 6 months after an infringement to shift changes, it’s worth considering now if you have adequate historical data on shift changes in place.
At StaffSavvy, we already have the processes for you to better plan and manage shifts and schedules, with a full history of shifts and shift changes. With the right scheduling software, you’ll significantly reduce the need for late changes and cancellations.
Assess your HR and Staff Management Software
Staff management software with automated rules and triggers can help ensure compliance with the new changes to contracts, sick pay, and leave.
If you don’t have staff management software yet to manage all this for you, now is a great time to consider your options. StaffSavvy is specifically designed for companies with a large portion of shift-based staff on a variety of contract types.
Conclusion
The upcoming Employment Rights Bill (expected in 2026) represents a significant shift towards greater security and fairness for casual and zero-hours workers in the UK. While these changes aim to improve working conditions, they may also present challenges for employers who must adapt accordingly.
By proactively auditing your contracts, policies, and software, you can navigate these changes effectively. Then, all you need to do is wait for the implementation date!