How new changes to workers' rights will affect you
The long-awaited Employment Rights Bill has been released, but what could it mean for British workers and how long till key policies come into force?
The head of the Unite union has warned that the government’s new package on workers’ rights has “more holes than Swiss cheese.”
Sick pay, maternity pay and unfair dismissal rules have had a major shake-up in what the government has promised will be a 'once-in-a-generation' overhaul of employment rights.
But the government has stopped short of ending zero-hours contracts and fire-and-rehire practices entirely, with workers given the option to stay on one of the controversial contracts if they wish.
The 28 proposals, which were being trailed long before Labour's general election victory, have been published today in the form of the Employment Rights Bill, which Keir Starmer has promised will mark a major "upgrade to workers’ rights" in the UK.
However, several previous pledges, such as a 'right to switch off' and creating a single worker status have been delayed for further consultation, while Chancellor Rachel Reeves has promised to address the concerns of business leaders.
Here Yahoo News takes a look at the key areas for reform under the scheme.
What workers' rights are changing?
Flexible working
The government has announced it will change the law to make flexible working the default for all, unless the employer can prove it’s unreasonable.
Bosses currently have no obligation to accept such a request, but the new bill intends to make flexible working the default "where practical".
The policy has become a dividing line between the Tories and Labour however, with business secretary Jonathan Reynolds accusing the Conservatives of “declaring war on people working from home”.
Jane van Zyl, CEO at Working Families, said that the measure "could be the key to unlocking labour market mobility". She added that the measure carries "the promise of getting the economy moving and ensuring parents and carers are not held back in their careers."
Organisations such as the Trades Union Congress (TUC), Age UK and the Fawcett Society have backed the latest plans, writing to the government to slam the "witch hunt against flexible working" and arguing it would get more people into work "and keep them there".
Some big firms, such as Travelodge, are also increasingly turning to flexible working offers in a bid to attract and retain staff.
Zero-hours contracts
A ban on “exploitative” zero-hours contracts was one of Labour's flagship policies going into July's election.
It has made good on that pledge, saying that those hamstrung by the contracts previously now have the right to a guaranteed hours contract if they work regular hours over a defined period.
However, the government said it will allow people to remain on zero-hours contracts where they prefer to.
Even before the election, the party had signalled a softening of its position, with legislation now likely to include a choice for workers to opt in to zero-hours contracts if they want to.
The controversial job terms, frequently applied to low-paid workers in the so-called 'gig economy' are unlikely to be phased out completely.
However, it is uncertain what this will mean for defining workers said to benefit from the government creating a single worker status.
The measure, which will be consulted on in addition to the bill, intends to strengthen the rights of gig economy workers who tend to be defined under a third employment status where they have less rights.
However, staff are expected to be give the automatic right to a contract which reflects the number of hours based on a 12-week reference period.
Financial compensation could also be mandated if shifts are cancelled or cut short.
Right to switch off
One of the most high-profile areas of Labour's workers' rights plans has been the so-called 'right to switch off'.
In theory, this would mean staff would not be obliged to engage with correspondence from work - such as phone calls or emails - outside their contracted hours or on holiday.
However, the proposal will not be included in the main draft of the new legislation.
Instead, it will be put in a so-called Next Steps document for further consideration and consultation.
Sick pay
Currently, employees cannot claim sick pay until they have been unwell for four days and must earn at least £123 a week, before tax.
Labour has scrapped both of these rules, entitling workers to sick pay from their first day of illness regardless of how much they earn.
A report by the Commission for Healthier Working Lives has called for an overhaul of rules to combat climbing rates of long-term sickness in the UK, noting the current 'fit note' system is "ineffective", while Britain also has a low sick pay rates compared to other countries.
Probation shake-up
Extended probation periods will be consulted on as a carrot to businesses in an attempt to encourage them to hire people returning from periods of long-term sickness.
The government will investigate a new statutory probation period for companies’ new hires outside of the bill.
If adopted in the bill, it would be expected to mirror the system used in Ireland, where probation periods can last up to a year in some circumstances, such as following lengthy absence from the workplace.
Helen Dickinson OBE, CEO of the British Retail Consortium, said the organisation "looks forward to engaging the government on the details, including around seasonal hiring and the use of probation periods.”
'Day one rights'
So called 'day one rights' - which would give employees their full suite of rights, such as sick pay, maternity pay and protection against unfair dismissal - form the key plank of the policy.
The coverage will be extended to an estimated seven million people.
Currently, workers need to show two years of continuous service with an employer to lodge an unfair dismissal claim, while women need to have been employed for six months before they can claim maternity pay.
Under the Bill, the existing two-year qualifying period for protections from unfair dismissal will be removed and workers will have the right from their first day in a job.
'Worker' status
A proposed 'single worker status', which Labour outlined in its 2021 New Deal for Working People, promised that "all workers, regardless of sector, wage, or contract type" would be give the same rights and protections under law, including sick pay, holiday pay, parental leave and protection against unfair dismissal.
This was intended to extend rights to freelancers and 'gig economy' workers, but it will be consulted on outside of the bill.
Fire and rehire
So-called 'fire and rehire' practices have come under the spotlight in recent years and refer to firms dismissing staff so they can be rehired under new terms and conditions.
Labour has committed to ending "unscrupulous fire and rehire practices" in the bill, following its commitment last month when supermarket chain Tesco lost a supreme court battle over the issue.
What have the reactions been like?
Reactions to the bill have been largely positive, although there have been some concerns from unions about the legislation not going far enough, as well as some cautionary warning from businesses.
Sharon Graham, general secretary of Unite, broadly welcomed the Employment Rights Bill, but said that the plans, such as not completely scrapping zero hours contracts, "leave more holes than Swiss cheese."
She said: “The Bill still ties itself up in knots trying to avoid what was promised.
“Failure to end fire and rehire and zero hours contracts once and for all will leave more holes than Swiss cheese that hostile employers will use."
What happens next?
While the potential impacts of the bill are far-reaching, it could be years before its policies are implemented in full.
Of the 28 separate changes to existing legislation, few are expected to have been enacted by autumn 2026.
Once the draft bill has been published, it is expected to have its official 'first reading' in Parliament before the end of the year.
After that, it would be subjected to two more 'readings' in the House of Commons, as well as scrutiny by parliamentary committees, before being passed to the House of Lords and finally given royal assent to pass into law, a process which can take months, if not years.
There will also, undoubtedly, will attempts to tighten up or water down the proposals, by those with a vested interest.