K government ministers have unveiled the Employment Rights Bill , introduced within 100 days of the new government coming to office .

The existing two-year qualifying period for protections from unfair dismissal will be removed , delivering on the manifesto commitment to ensure that all workers have a right to these protections from day one on the job .

The government will also consult on a new statutory probation period for companies ’ new hires . This will allow for a proper assessment of an employee ’ s suitability to a role as well as reassuring employees that they have rights from day one , enabling businesses to take chances on hires while giving more people confidence to re-enter the job market or change careers , improving their living standards .

The bill will bring forward 28 individual employment reforms , from ending exploitative zero hours contracts and fire and rehire practices to establishing day one rights for paternity , parental and bereavement leave for millions of workers . Statutory sick pay will also be strengthened , removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in .

Accompanying this will be measures to help make the workplace more compatible with people ’ s lives , with flexible working made the default where practical . Large employers will also be required to create action plans on addressing gender pay gaps and supporting employees through the menopause , and protections against dismissal will be strengthened for pregnant women and new mothers . This is all with the intention of keeping people in work for longer , reducing recruitment costs for employers by increasing staff retention and helping the economy grow .

A new Fair Work Agency bringing together existing enforcement bodies will also be established to enforce rights such as holiday pay and support employers looking for guidance on how to comply with the law .

George Holmes , Managing Director of business finance specialist , Aurora Capital , commented on what this could mean for small businesses . He said : “ The planned overhaul of workers ’ rights , including protection from unfair dismissal

MANY OF THESE CHANGES , INCLUDING THE INTRODUCTION OF STATUTORY SICK PAY FROM DAY ONE , COULD ADD FINANCIAL STRAIN , ESPECIALLY FOR BUSINESSES ALREADY NAVIGATING RISING COSTS .

from their first day , is a significant shift in the balance of power towards employees .

“ While this is undoubtedly a positive move for workers , offering them welcome added security , small businesses will face a steep learning curve . Many of these changes , including the introduction of statutory sick pay from day one , could add financial strain , especially for businesses already navigating rising costs .

“ Small businesses are the backbone of the UK economy and will need support to adapt to these new regulations without it stifling growth or hiring . Access to flexible finance will be crucial . I would urge the government to not just increase workers ’ rights but also offer support and guidance to ensure small businesses can implement these changes without collapsing under the weight of added compliance costs .

“ Without this , we risk creating a system where small firms are forced to scale back , which would ultimately hurt the very workers these reforms are meant to protect .” �

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