Landmark Employment Bill set to reshape workers’ rights

As part of the Labour Party’s 100-day-pledge to reform workers’ rights, the Employment Rights Bill was published in October 2024, proposing a significant shift in the UK employment landscape with far-reaching implications in the agricultural sector.

While many provisions of the Bill are unlikely to take effect before 2026, and details are still awaited, agricultural employers should stay informed about the proposed changes and their potential impact. We explore some of the Bill’s key proposals and their impact on farm workers’ rights.

Unfair dismissals: A day one right

The Bill removes the current two-year qualifying period for unfair dismissal claims, allowing employees to claim unfair dismissal from day one of employment.

To balance the scales slightly, the new right will be subject to a statutory trial or probationary period (predicted to be nine months), allowing employers to dismiss an employee during this initial period by following a ‘light touch’ procedure. Details of this new right (including how the light touch process will operate) are awaited.

For employers, this landmark change may increase administrative obligations and risks of legal claims. Employers will need to implement and document fair dismissal procedures from day one and ensure they have robust procedures for measuring performance within the probation period.

Statutory sick pay reforms

Another significant aspect of the Bill is that statutory sick pay (SSP) will become payable from day one of sickness (rather than the current day four) and will allow all workers (regardless of earnings) to qualify. Payment will be at the lower of either 80% of average weekly earnings or a flat prescribed rate.

This is an additional cost for employers to budget for, as more workers will become eligible for SSP.

Zero hours workers: Guaranteed hours

While the Bill does not ban zero-hour contracts, it seeks to limit their use. Employers will need to offer guaranteed-hours contracts to workers who consistently exceed their contracted hours over a defined “reference period.” The specific threshold and period will be set by regulations, but the intent is to ensure regular work patterns are reflected in formal contracts.

If they qualify, a worker must be offered a new or revised contract that guarantees the average hours worked during the reference period. This obligation will also apply to agency workers.

This could impact the agriculture sector, where work is highly seasonal. For example, workers regularly exceeding their contracted hours during peak seasons may become entitled to guaranteed hours even during quieter periods. This could force employers to offer unneeded hours, or face legal consequences.

The proposals are being consulted on and may lead to exceptions being introduced for seasonal workers.

Shift rights: Notice

Zero-hour workers, and workers whose guaranteed hours fall below a certain threshold (yet to be decided), under the Bill, will be entitled to receive reasonable notice of how many hours are to be worked and at what time on which days, and if those hours change.

The Bill also introduces entitlement to workers to be paid if shifts are cancelled, curtailed or a moved at short notice.

These provisions will affect farming, where short-notice scheduling is common and the cancellation of shifts can occur where weather conditions dictate.

Other areas

In addition to the above key areas, other measures included in the Bill include changes to flexible working, family related leave, enhanced redundancy protections and the widening of harassment provisions. Businesses should keep up to date with developments as the Bill progresses to ensure they are compliant with new obligations when they come into force.

This article was first published in the June 2025 edition of South East Farmer.

This content is correct at time of publication