A Bill to amend the existing Employment Rights Bill was introduced in the House of Commons in October 2024 and is currently passing through Parliament for approval. The aim of the Bill is to increase productivity and grow the economy by improving conditions for British workers.  

Five key amendments have been put forward by the House of Commons: 

• Application of zero hours contract measures to agency workers 

All workers, including up to 900,000 agency workers in the UK, should be able to access a contract which reflects the hours they regularly work. It will offer increased security for working people to receive reasonable notice of shifts and proportionate pay when shifts are cancelled, shortened or moved at short notice – whilst retaining the necessary flexibility for employers in how they manage their workforces. 

• Strengthening remedies against abuse of rules on collective redundancy 

The Government will increase the maximum period of the protective award from 90 days to 180 days and issue further guidance for employers on consultation processes for collective redundancies. Increasing the maximum value of the award means an Employment Tribunal will be able to grant larger awards to employees for an employer’s failure to meet consultation requirements. 

• Creating a Modern Framework for Industrial Relations 

The government is updating the legislative framework in which trade unions operate to align it with modern work practices. They are ensuring industrial relations are underpinned by a system that balances the interests of workers, businesses and the wider public.

• Strengthening Statutory Sick Pay 

The Government will ensure the safety net of Statutory Sick Pay is available to those who need it the most, making it a legal right for all workers for the very first time. Up to 1.3 million employees on low wages who find themselves unable to work due to sickness will either receive 80 per cent of their average weekly earnings or the current rate of Statutory Sick Pay – whichever is lower. Employees will also have a right to Statutory Sick Pay from the first day of sickness absence, so they are able to take the time off they need to recover and stay in work rather than risk dropping out altogether. 

• Tackling non-compliance in the umbrella company market 

The Government will act to ensure that workers can access comparable rights and protections when working through a so-called umbrella company as they would when taken on directly by a recruitment agency. Enforcement action can be taken against any umbrella companies that do not comply.  

Most of the Bill will apply to England, Scotland and Wales, but not Northern Ireland where employment law is devolved. 

BPMA benefit provider Quest are running a webinar that members are invited to on 16th April at 11am, focusing on the most important legal updates and key changes to compliance requirements.

Register below:   

2025 Employment Law Updates: Staying Ahead of the Changes 

Find updates and progression of the Bill through Parliament here.