Summary of the Employment Rights Bill including details on changes to Statutory Sick Pay (SSP)
The Employment Rights Bill introduces sweeping reforms to modernise the UK’s employment laws, aiming to strengthen worker protections, provide greater flexibility, and ensure fairer treatment across the labour market. It addresses longstanding gaps exposed by changing work patterns, including the rise of gig economy employment, flexible working needs, and vulnerabilities in low-paid sectors.
A central reform in the Bill is the introduction of a “Day One” right to request flexible working. Employees will now be able to request flexible arrangements — such as remote working, adjusted hours, or compressed workweeks — from the first day of employment, rather than after 26 weeks of continuous service. This aims to improve inclusivity, particularly for those with caring responsibilities or health conditions.
The Bill also strengthens redundancy protections for pregnant employees and new parents. Protection from redundancy will start as soon as an employee notifies their employer of their pregnancy and will extend until 18 months after the birth or adoption of a child. This addresses concerns about maternity-related discrimination and job insecurity during critical life stages.
Workers on unpredictable contracts, including many in hospitality, retail, and gig sectors, will gain the right to request a more predictable working pattern after 26 weeks of service. This empowers individuals facing insecure hours to seek greater stability in their employment.
A major structural change introduced is the creation of a Single Enforcement Body to combine responsibilities for enforcing minimum wage laws, labour exploitation protections, and agency worker standards. This consolidation is intended to simplify compliance for businesses and make enforcement more efficient and accessible for vulnerable workers.
In response to issues around employment status, the Bill provides clearer statutory definitions of “employee,” “worker,” and “self-employed” individuals. By reducing legal ambiguity, the government aims to ensure that rights such as holiday pay, sick leave, and minimum wage are properly extended to those entitled to them.
A notable reform concerns Statutory Sick Pay (SSP). Under the Bill, eligibility for SSP will be expanded. Currently, workers must earn above the Lower Earnings Limit (LEL) — £123 per week (as of 2024) — to qualify. The Bill proposes removing this threshold, making SSP available to all employees from the first day of illness, regardless of their earnings level. This reform targets low-paid and part-time workers who were previously excluded from sick pay entitlements, addressing inequality exposed starkly during the COVID-19 pandemic.
In addition, the waiting period for SSP — traditionally three days — will be abolished. Employees will now receive SSP from the first day of absence due to sickness. These changes aim to support public health, encourage sick employees to take time off without financial penalty, and reduce the spread of illness in workplaces.
Finally, the Bill includes broader provisions to enhance workplace transparency. Employers will be required to provide more detailed written statements of employment particulars on or before the first day of work, improving workers’ understanding of their rights from the outset.
Conclusion
The Employment Rights Bill represents a substantial shift towards a fairer, more responsive employment framework. By expanding flexible working rights, bolstering protections against redundancy, reforming statutory sick pay, and creating stronger enforcement mechanisms, the Bill seeks to balance the needs of a dynamic economy with greater security and dignity for workers.
