Government launches consultations on Employment Rights Bill proposals

Zero hours contracts

This consultation addresses the introduction of a right to guaranteed hours for zero or low-hours workers. This new right is aimed at tackling "one-sided flexibility" by ensuring that workers are entitled to regular hours that reflect the average worked over a reference period, expected to be 12 weeks. Additional rights will include reasonable notice of shifts and compensation for last-minute shift cancellations. The Department for Business and Trade is specifically seeking feedback on how these measures should apply to agency workers. Further consultation on the general implementation of these provisions is expected in the future.

Collective redundancy and fire and re-hire

The government is also consulting on proposed changes to the collective redundancy framework. Currently, employers may be required to pay a protective award of up to 90 days’ pay per affected employee if they fail to follow redundancy consultation rules. The consultation explores options to either double this cap to 180 days or remove it entirely, allowing tribunals more discretion. Views are also sought on whether interim relief should be available to employees who claim a protective award. Looking ahead to next year, the consultation indicates that the government also intends to gather more feedback on increasing the minimum consultation period when 100 or more redundancies are proposed, from 45 days to 90 days.

In addition, the Bill proposes stricter controls on 'fire and rehire' practices, whereby employers could only change employees' contracts in cases of financial necessity that threaten business viability. The consultation seeks opinions on whether interim relief should be extended to employees making unfair dismissal claims in these scenarios.

Trade union law reform

This consultation focuses on modernising trade union law. Key proposals include:

• Simplifying the rules for industrial action ballots and employer notifications
• Strengthening provisions against unfair practices during the union recognition process
• Extending the validity of a union’s mandate for industrial action from six to 12 months
• Reducing the notice period for industrial action

Statutory sick pay changes

The Department for Work and Pensions is consulting on significant changes to SSP, which includes:

• Removing the current three-day waiting period, allowing SSP to be paid from the first day of illness
• Eliminating the lower earnings limit to ensure all employees, regardless of earnings, are eligible for SSP. The proposed changes mean that for some lower earners, SSP may be calculated as a percentage of their average earnings, rather than the current flat rate. The consultation seeks input on the appropriate percentage, offering examples ranging from 60% to 80% of earnings

Further consultations expected

These consultations are not the final step in the government’s process of developing the Employment Rights Bill. Further consultations are anticipated as the Bill progresses through Parliament. For example, the government has indicated plans to consult more widely on the implementation of measures related to zero hours contracts, collective redundancy, and modernising trade union law. Employers and industry stakeholders should therefore expect additional opportunities to provide feedback and shape the development of these legislative changes.  Consultations are also expected on other key areas of reform included within the Bill, such as day 1 unfair dismissal rights.  

Next steps

These consultations provide a crucial opportunity for employers, HR professionals, and industry stakeholders to influence the development of the Employment Rights Bill. The responses could shape the final form of the legislation, affecting how employers manage contractual obligations, employee dismissals, and workplace policies. Employers should consider reviewing the consultation documents and providing feedback to ensure their perspectives are represented.

The consultations on zero hours contracts, collective redundancy and fire and re-hire, and trade unions, all close on 2 December.  The consultation on SSP changes closes on 4 December.

For further details, please refer to the consultation documents available via the following links:

• Zero hours contracts consultation
• Collective redundancy and fire and rehire consultation
• Trade union consultation
• SSP consultation

For further advice or information please contact Bob Fahy in our Employment team on 07500 686 163. Alternativly, you can fill out the form below.