The Employment Rights (Amendment) Bill 2024: Key Changes for Employers and Employees

As of tomorrow, the long-awaited Employment Rights (Amendment) Bill 2024 will come into force. This legislation represents a significant shift in employment law, offering stronger protections for employees while setting new obligations for employers. Here at Adam Benedict, we want to highlight some of the key changes that both businesses and workers need to be aware of.

1. Enhanced Protection for Gig and Freelance Workers

One of the most transformative aspects of the 2024 Bill is the extension of employment rights to gig economy and freelance workers. These workers will now be classified under a new "dependent contractor" category. This means they will receive basic rights, such as:

• Holiday Pay: Dependent contractors will now be entitled to paid annual leave, calculated based on their average weekly earnings over a 52-week reference period.

• Sick Pay: Gig workers will also have the right to statutory sick pay, a move that seeks to level the playing field for workers in non-traditional roles.

For employers in sectors that rely heavily on freelance or gig workers—such as transport, delivery services, and the tech industry—this change will likely necessitate an overhaul of employment contracts and working conditions.

2. Flexible Working Rights

Building on the pre-existing right to request flexible working, the 2024 Bill will now give all employees the right to request flexible working from the first day of employment. Moreover, employers will be required to:

• Provide a decision on flexible working requests within two months (reduced from three).

• Discuss alternatives if the initial request is denied.

This change reflects the post-pandemic shift towards more adaptable working arrangements. Employers will need to be prepared to handle a surge in flexible working requests, especially from new hires.

3. Redundancy Protection for Pregnant Employees and New Parents

Another significant update is the extended redundancy protection for pregnant employees and new parents. Under the new provisions, the protection period will cover pregnancy and extend for 18 months after maternity leave, adoption leave, or shared parental leave ends. This provides greater job security for new parents and places additional restrictions on employers seeking to make employees redundant during this period.

Employers should be aware that if redundancies are necessary, employees in this protected period must be given priority for any suitable alternative vacancies.

4. Increased Penalties for Breaching Employment Rights

The Employment Rights (Amendment) Bill also introduces more stringent penalties for employers found in breach of their obligations. The maximum financial penalty for serious breaches will increase to £100,000 (up from £20,000), with additional penalties for repeat offenders.

This should serve as a clear warning to employers to ensure compliance with employment laws, especially with the increased focus on the rights of workers in non-standard employment relationships.

5. Stronger Whistleblower Protections

Finally, the Bill strengthens the protections for whistleblowers, making it easier for employees to report workplace wrongdoing without fear of retaliation. The changes include a broader definition of what constitutes a “protected disclosure” and stronger safeguards against dismissal or detriment.

What This Means for Employers and Employees

For employers, the introduction of the Employment Rights (Amendment) Bill 2024 will require careful consideration of current employment practices and policies. Contractual terms, employee benefits, and internal procedures should all be reviewed to ensure compliance. Failure to do so could result in costly penalties and reputational damage.

For employees, this legislation marks a significant step forward in securing fair treatment in the workplace, particularly for those in precarious, freelance, or gig-based roles. It is a timely response to the evolving nature of work in the UK, ensuring that employment law keeps pace with modern working practices.

Final Thoughts

As always, it is important for both employers and employees to stay informed about their rights and obligations under the law. The 2024 Bill represents a new era of employment rights in the UK, and its impact will be felt across industries. 

If you need advice on how these changes might affect your business or your personal employment situation, please reach out to Adam Benedict for professional legal guidance.